ABB Building Systems is 'business as usual' until a new parent company is found, while the group looks to cut costs on the back of a poor third business quarter.
ABB is looking to lower its outgoings by 4% of revenues in a massive cost-cutting drive. "Two-thirds of cost reductions are to come from job cuts and one third from other actions," reads ABB's new short and mid-term business targets.

Even in light of this new programme of cost reduction, ABB says that it will not speed up the sale of ABB Building Systems. The m&e division is due to be sold off in 2003, along with ABB's oil, gas and petrochemicals arm.

ABB CEO and chairman Jurgen Dormann, said: "The pace of divestment activity is to be accelerated but, in respect of Building Systems, it is not likely to occur until 2003."

Garry Metcalfe, ABB Building Systems UK md, said: "Until a new parent emerges we will continue to drive meaningful improvements to the business."

In the wake of profit warnings, ABB is streamlining its operations. The power technologies and utilities divisions have been merged, as have the automation technology products and industries divisions.

Fears that ABB is on the verge of collapse, following multiple asbestos claims in the US, have been allayed. The group is likely to reorganise Combustion Engineering, the company at the centre of the claims, under Chapter 11 of the US bankruptcy code.

Source

Electrical and Mechanical Contractor