Sumary of UPDATE 3-ABB hikes sales outlook, readies electric charger business IPO:
- By John Revill3 Min ReadZURICH (Reuters) -Engineering company ABB doubled its full year sales guidance on Thursday thanks to resurgent global industrial demand and said it is forging ahead with plans to float its fast growing electric vehicle charging business next year.
- FILE PHOTO: The logo of Hitachi ABB is seen at an office building in Zurich, Switzerland September 10, 2020. REUTERS/Arnd WiegmannThe factory drives and robot maker reported better than expected second quarter results and said double-digit order growth was seen in all its business areas as customers rebuilt their inventories.
- Sales of its high-speed electric vehicle chargers for buses and cars have seen an average growth rate of 50% since 2016, benefiting from a global boom in battery-powered vehicles.
- Chief Executive Bjorn Rosengren said the business could be listed early next year to help accelerate its growth.
- The former Sandvik boss’s overhaul has been welcomed by investors, with ABB’s stock gaining 1.8% on Thursday to reach its highest level since November 2007.ABB plans to keep a stake in the electro-charging business- a similar strategy to German rival Siemens when it spun off its medical equipment business Healthineers.
- A separately listed electric vehicle charging business would probably have a higher valuation multiple than ABB itself, Rosengren said, which could help it with acquisitions of both software and hardware companies and attract capital for quick growth.