Keeping an Eye on Technology Futures, No Hidden Agendas, New Attitudes, No Platitudes!
ABB plans to maintain its current core portfolio of businesses and aims to build on its leading technology and strong market positions in the fast-growing emerging economies to increase revenues organically at almost twice the rate of market growth and three times the rate of global GDP growth.
ABB expects profitability to increase by as much as 5% during the 5-year period, compared to 2006. As a result, earnings are expected to grow by a compound average of 15-20% per year, and after-tax return on capital will exceed 30% by 2011.
This strong position continues to fuel the news that ABB will soon make a move to acquire Rockwell. Meanwhile, Rockwell hired ex-Ford manufacturing people to run some of its US manufacturing plants, causing lots of layoffs and plant-closings. Distracted by these screw-ups, Rockwell is reported to be girding for a fight. Stay tuned...
