WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.200 –> 00:04.119
One of the world’s top manufacturers of
industrial robots is planning to spin that
00:04.119 –> 00:06.849
business off into a stand-alone company in the
coming months.
00:07.000 –> 00:11.560
Industrial conglomerate ABB announced Thursday
that it expects its robotics division to
00:11.560 –> 00:15.800
separate from its other operations and begin
trading as a new public company in roughly a
00:15.800 –> 00:18.639
year’s time.
ABB Robotics is the world’s 2nd largest
00:18.639 –> 00:23.799
robotics maker, lagging only Japan’s FAUC in a
market that remains poised for growth amid
00:23.799 –> 00:26.693
long-term labor.
Challenges in manufacturing of late,
00:26.773 –> 00:30.773
however, the business has struggled due to a
slowdown in the automotive sector and most
00:30.773 –> 00:34.562
recently concerns about the impact of US
tariffs on the global economy.
00:34.722 –> 00:38.963
Company officials added that the robotics
business and the rest of ABB’s operations have
00:38.963 –> 00:43.132
different market and demand characteristics,
along with limited business and technology
00:43.132 –> 00:47.452
synergies, contending that each would benefit
from a more focused governance and capital
00:47.452 –> 00:49.132
allocation.
The segment saw 2.
00:49.405 –> 00:55.736
4 revenues of $2.3 billion which amounted to 7%
of the overall total posted by ABB Group,
00:55.945 –> 00:57.976
and it employs about 7000 people.
00:58.186 –> 01:01.986
Reuters noted that the spinoff would represent
the biggest change at the Swiss company since
01:01.986 –> 01:04.886
the 2018 sale of its power grid business to
Hitachi.
01:05.106 –> 01:08.096
ABB also posted its latest quarterly earnings
on Thursday,
01:08.466 –> 01:13.856
including $9.2 billion worth of orders in the
first quarter and $7.9 billion in revenue.
01:14.265 –> 01:16.225
I’m Andy Szal.
This is manufacturing now.