CreditSights logo
Forgot Password?


ABB Ltd is a leading Swiss global engineering company providing power and automation technologies to utility, industrial and commercial customers. Following a strategic decision taken in the recent Investor Day in September 2015, operations are organized in four divisions. ABB has merged its Power Systems (turnkey substations) division and part of the Power Products unit (transmission and distribution components) into a new division called Power Grids. This generated 29% of 3Q17 revenues and 22% of Op. EBITA. The remaining 3 divisions are Robotics & Motion (25% of sales, 32% of Op. EBITA), Electrification Products (30%, 37%) and Industrial Automation (21%, 20%). Geographically, sales are split between Europe (33% of FY16 revenues), the Americas (29%), and Asia, the Middle East and Africa (38%). ABB has described 2018 as a "new normal", with all segments targeting profitability within their stated op. EBITA margin corridors: 10-14% at PG, 15-19% at EP, 14-19% at RM, and 11-15% at IA. (03 Jan 2018)

Search Results

Excerpts only. To access full content please login or request a free trial.

Schneider Electric 1H18: Growth from All Segments

Earnings Note: 30 Jul 2018, 9:03 PM ET - SUFP reported a solid 1H18 with LFL revenue growth at all segments including Medium Voltage. We are of the view that Schneider will benefit from a lack of exposure to the traditional power generation segment vs close cap goods peers.

ABB 2Q18: PG Drags Performance, GE Raises Leverage

Earnings Note: 19 Jul 2018, 10:13 PM ET - ABB's revenue growth and margins were hampered by the Power Grids (PG) division, while the acquisition of General Electric's Industrial Solutions raised leverage. That said, we still view ABB as a solid core holding in the cap goods space.

Siemens 2Q18: Let’s Talk About Power and Gas

Earnings Note: 09 May 2018, 8:25 PM ET - Siemens reported a soft second quarter with Power and Gas continuing to be a burden for the group. Nonetheless, credit metrics remained robust and we maintain our U/P recommendation on SIEGR's EUR bonds and M/P on its USD bonds.

Schneider Electric: Finally Gets Around to L&T

IG Note: 02 May 2018, 12:11 PM ET - Schneider Electric announced that it has reached an agreement to acquire the Electrical and Automation business from Larsen & Toubro (L&T), with limited impact on credit metrics. Bearing this in mind, we move to a M/P on SUFP's bonds.

ABB and Schneider Electric: 1Q18 Performance

Earnings Note: 22 Apr 2018, 10:39 PM ET - ABB reported 1Q18 earnings and Schneider Electric reported 1Q18 revenues, with LFL revenue growth higher at SUFP compared to ABB. We continue to see event risk being higher at SUFP compared to ABB and maintain U/P on SUFP and M/P on ABB.

ABB: Issuing 2-, 5- and 10-Y USD Bonds

Worth Watching: 26 Mar 2018, 11:33 AM ET - ABB (A2/A) is issuing 2-year (April 2020 maturity), 5-Year (April 2023) and 10-Year (April 2028) dollar-denominated notes. The new issue will be used to partially fund the acquisition of General Electric's Industrial Solutions business (see ABB: ..

US Cap Goods: Event Risk = Sector Underperformance

IG Note: 21 Mar 2018, 5:23 AM ET - The Capital Goods Index has been the worst performing sector on an excess return basis year-to-date. Sector returns severely lagged the Index in January with GE and UTX being notable underperformers to date.

US Strategy: Tariffs as Repricing Event?

Strategy Analysis: 01 Mar 2018, 9:40 PM ET - The market has been building in very low odds of a trade war event, a NAFTA withdrawal, or a significant escalation of tit-for-tat trade retaliations on a broader scale.  The odds-makers just got a fresh load of input.

SUFP 2H17: Solid Results but what about Event Risk?

Earnings Note: 18 Feb 2018, 8:41 PM ET - Schneider Electric reported solid results and credit metrics improved. While we acknowledge that the market will support SUFP in 2018, we are of the view the event risk is still present and maintain our U/P recommendation on its bonds.

ABB 4Q17: Mixed End to Transition Year

Earnings Note: 11 Feb 2018, 9:55 PM ET - ABB reported a mixed 4Q17 with weakness at some divisions, although credit metrics improved YoY.  Execution risk is on the cards during 2018, while ABB integrates recent and oncoming acquisitions. We maintain our M/P view on ABB.

CNHI 4Q17: Supportive Positive Trends

Earnings Note: 31 Jan 2018, 9:11 AM ET - CNHI reported results highlighting positive trends in end-market demand which contributed to better operating performance. Credit metrics continue to strengthen at the Capital Goods bellwether and we maintain our O/P on CNHI bonds.

US Industrial 2018 Outlook: Conglomerate Conundrum

Sector Analysis: 21 Jan 2018, 9:58 PM ET - Against the backdrop of a generally favorable global demand environment, event risk is the key 2018 credit concern for the conglomerate peer group. We focus on this topic and revisit our credit recommendations for more than two dozen firms.

2017 Euro Conference: IG Autos & Cap Goods

Transcript: 19 Dec 2017, 11:25 PM ET - In this presentation we discuss four trends in the Auto and Capital Goods sectors – Automation, Electrification, Autonomous driving and Renewable Energy – and the steps being taken to adapt corporate strategies and evolve with the times.

CNH Industrial: Issuing New 10Y US$ Bonds

Worth Watching: 09 Nov 2017, 1:23 PM ET - CNH Industrial is issuing new 10-year US dollar bonds out of the CNH Industrial N.V. (parent) entity. CNH Industrial has one other US$ bond outstanding at the parent level, the 4.5% 8/2023 bond (Ba2/BBB -/BBB-), which trades at a spread of G+12 ..

October 2017 Europe Company Recommendation Changes

Euro Recommendation Changes: 31 Oct 2017, 11:11 PM ET - Our monthly report provides executive summaries for the ten companies recommendation changes made on European companies during the month of October.

ABB & Schneider Electric: 3Q17 Performance

Earnings Note: 29 Oct 2017, 11:54 PM ET - Large M&A looks less likely at ABB vs. SUFP over the near term given ABB's acquisition of GE's Industrial Solutions business, with rumours that SUFP may still make a large acquisition. We switch to M/P on ABB and remain U/P on SUFP bonds.

Volvo 3Q17: Solid Earnings, Stay O/P On Hybrids

Earnings Note: 23 Oct 2017, 9:06 AM ET - Volvo reported a solid third quarter with growth from most regions and segments. Credit metrics strengthened over the quarter with net leverage now at 0.2x. We remain Outperform on the hybrid bonds.

ABB: Buys GE’s Industrial “Orphan” for $2.6 bn

IG Note: 25 Sep 2017, 12:30 PM ET - ABB announced the acquisition of General Electric's Industrial Solutions business for $2.6 bn, with the deal expected to close in 1H18. We maintain an Underperform recommendation on ABB euro and US dollar bonds.

Schneider Electric: Third Time Lucky With Aveva

IG Note: 06 Sep 2017, 10:05 AM ET - SUFP announced the merger of its Industrial Software business with Aveva Group plc, a UK based software provider, and  we view the transaction as a marginally credit positive for SUFP. We remain Underperform on SUFP euro-denominated bonds.

Rental Cases: URI M&A Stays Hot, H&E Misses

Sector Analysis: 17 Aug 2017, 12:01 PM ET - Rentals activity stays hot as favorable secular trends, consolidation of a fragmented industry, and a waiting game for tax reform and infrastructure details remains the order of the day. URI stays true to its history of M&A focus.

Request A Free Trial

CreditSights offers free trials to individuals in qualified institutions.

Sign up now >>



Refine Results