News was not all bad though. Record cash flow in the fourth quarter helped reduce the debt by US$2194 million, more than double the forecast target.
ABB's restructuring programme, announced in July 2001, is said to be ahead of schedule. So far, employee numbers are down by 7200; part of a planned 12 000 reduction in staff.
"After a detailed review of our operations, we took broad measures across our businesses to turn the page and put ABB on a better footing," said Jorgen Centerman, ABB president and ceo. "We will continue to focus our core offerings, cut costs and further reduce net debt."
In the UK, the group has consolidated its businesses under the title ABB Ltd. The m&e contracting arm, formerly known as ABB Building Technologies, is now part of ABB Building Systems, itself forming part of the manufacturing and consumer industries division.
As part of the global restructure, around 800 jobs have been lost in the UK. Staff numbers in m&e contracting have gone down from 1200 to 1000, with a reduction in the number of bases around the country and a new UK headquarters in Solihull. The new strategy sees ABB selling products as well as contracting as part of a turnkey package to clients.
Globally, ABB reported a 16% drop in orders in the manufacturing and consumer industries division, with the USA, Sweden and Germany most affected. Growth in the Building Systems arm partly offset the decline in the Automotive Industries business unit.
Source
Electrical and Mechanical Contractor
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