ABB steps-up Power Systems revamp
ABB has revealed it is planning even more drastic action at its Power Systems division, where issues such as delays to major offshore wind projects have dragged down the Swiss-based group’s performance.
Power Systems will no longer bid for solar EPC projects and will undertake a “reassessment of the business model for offshore wind power connections”, ABB said, as it admitted the turnaround would take longer than expected.
ABB had already announced in January a management overhaul and action plan at Power Systems, after it took a $260m hit in the final quarter of 2013.
Announcing the group’s Q1 2014 figures today, CEO Officer Ulrich Spiesshofer said: “We are disappointed with the continued poor performance in Power Systems and are rigorously executing actions that go well beyond the previously-announced strategic realignment.”
The Power Systems Division registered a negative Ebitda (earnings before interest, tax, depreciation and amortisation) of €29m for the quarter, compared to a positive €169m at the same stage last year.
The ABB unit is working on major German offshore transmission projects such as the delayed Dolwin1.