ABB to Exit Russian Market, Opens Machine Automation Campus
ABB released its second quarter 2022 earnings amid multiple announcements this week. The company said it planned to exit the Russian market, citing the ongoing war in Ukraine and the impact of related sanctions.
ABB shared its decision one day after announcing its intention to spin out its Accelleron turbocharging business, and less than two weeks after opening a global machine and factory innovation and training campus in Austria.
According to the company, Russia accounted for 1% or 2% of ABB Group annual revenue before it stopped taking new orders from that market at the onset of the war. In prepared remarks, CEO Björn Rosengren said ABB started the process of winding down remaining activities in Russia. ABB estimated the decision to exit Russia delivered a financial charge of around $57 million for the completed second quarter.
ABB added in a press release that it continued to fulfill existing contractual obligation with customers in Russia in compliance with applicable sanctions. Most of its Russian workforce — about 750 people — has been on leave since March. ABB has two production sites in the country, including one near Moscow.
In a separate development, ABB disclosed a transaction to spin out its turbocharging business and list it on the SIX Swiss Exchange October 3. The business supports applications in the large engine industry.
In June, ABB said that it would delay the estimated $750 million initial public offering of its e-mobility business due to volatile financial markets.
ABB's global innovation and training campus for machine automation opened in mid-July 2022. Courtesy of ABB.
ABB opened its global R&D center for machine and factory automation, AI, and software solutions at the headquarters of ABB Group member B&R in Eggelsberg, Austria, earlier this month. The €100 million ($101.82 million) hub hosts machine builders, manufacturers, startups, research, and educational institutions. It will create up to 1000 additional high-tech jobs, and includes R&D laboratories and global training facilities.
For its second quarter, ABB ultimately reported revenues of $7.3 billion. The figure represents a 3% year-over-year decrease from 2021’s second quarter.
/Buyers_Guide/ABB_Ltd/c31013