Business Description

ABB Ltd. is a technology company that develops and provides automation solutions, as well as motion and electrification. The following business segments make up the company Robotics & Discrete Automation, Motion, Electrification, Corporate, Industrial Automation, and Other.

The Motion segment produces and markets generators. drives, motors, wind converts, and complete electric powertrain systems. Robotics & Discrete Automation sells robotics solutions and software for machinery automation. This includes function packages, controllers and software, cells, and programmable logic controllers. Industrial PCs, servo motion, engineered manufacturing solutions, and turn-key robot solutions.

The Corporate and Others segment includes the Company’s headquarters, central development, historical operating activities Corporate Treasury Operations, and certain divested businesses. The company was established on January 5, 1988, and is headquartered in Zurich, Switzerland

Key Financials

Revenue (US$ Mn):

• US$ 28,945 Mn was ABB Ltd’s annual revenue in 2021, a 10.76% increase from 2020 figures
• ABB Ltd indexed a -6.59% decrease in annual revenues from 2019, amounting to US$ 26,134 Mn in 2020
• ABB Ltd generated total revenue of US$ 27,978 Mn in 2019
• Annual revenue of US$ 27,662 Mn was indexed by ABB Ltd in 2018

Operating Income (US$ Mn):

• US$ 5,718 Mn was the operating income generated by ABB Ltd in 2021
• ABB Ltd’s operating income for 2020 was US$ 1,593 Mn, a -17.8% decrease from 2019
• From 2018’s operating incomes, ABB Ltd registered a -12.94% decrease in 2019, amounting to US$ 1,938 Mn
• An operating income of US$ 2,226 Mn was generated in 2018 by ABB Ltd

Net Income (US$ Mn):

• ABB Ltd’s net income for 2021 was US$ 4,546 Mn, a -11.66% decrease from 2020
• The net income generated by ABB Ltd in 2020 was US$ 5,146 Mn
• At a -33.78% decrease from , ABB Ltd’s net income of US$ 1,439 Mn was indexed in 2019
• ABB Ltd generated a net income of US$ 2,173 Mn in 2018

Operating Margin %

• 20% was ABB Ltd’s operating margin in 2021, a 222.95% increase from 2020 figures
• ABB Ltd indexed a -11.59% decrease in operating margins from 2019, amounting to 6% in 2020
• ABB Ltd generated a operating margin of 7% in 2019
• An operating margin of 8% was indexed by ABB Ltd in 2018

Gross Margin %:

• 16% was the gross margin generated by ABB Ltd in 2021
• ABB Ltd’s gross margin for 2020 was 20%, a -38.36% decrease from 2019
• From 2018’s gross margins, ABB Ltd registered a 2.91% increase in 2019, amounting to 32%
• A gross margin of 31% was generated in 2018 by ABB Ltd

SWOT Analysis

Strengths

Profitable growth opportunities can be achieved by leveraging the global footprint and local capabilities.

ABB could profit from a dominant position in several markets it serves. It is one the largest power and automation engineering firms in the world, with operations in over 100 countries throughout Europe, Asia and the Middle East, and Africa (EMEA), as well as the Americas. ABB, the largest manufacturer of electric motors, and drives provide these markets with a global production, engineering, and service base. In North America, ABB has established a strong presence over the past few decades through acquisitions to complement its dominant position in Europe and Asia. The company is active in all of the fastest growing or largest markets on every continent.

The company’s strong positions within these markets are supported by its local R&D, and product development capabilities, which allow it to match or exceed local competitors in terms of the speed of product creation and deployment. A strong local presence and global reach help the company to achieve consistent growth and success throughout the economic cycles. This position also allows the company to capture lucrative global growth opportunities

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