IS420UCSBH1A Processor/Controller Mark VI System

IS420UCSBH1A Product Introduction

This quarter, ABB announced that it will invest 100 million euros to build a world-leading innovation and training park in Eggelsberg, Austria, where B&R is headquartered. This move will promote ABB”s innovation in the fields of machinery and factory automation, including artificial intelligence and machine learning . ABB also announced that it will invest approximately US$30 million in Sweden to build a new technologically advanced power transformer component production plant.ABB completes acquisition of GE Industrial Systems businessThrough continuous business portfolio management, ABB is gradually promoting the shift of business focus. On June 30, 2018, ABB announced the completion of the acquisition of GE Industrial Systems (GEIS). Through this acquisition, ABB further consolidates its second-ranked leadership position in the global electrification field, expands the attractive North American market (ABB”s largest market), and accelerates the growth of the leading cycle business. GE”s industrial systems business will be merged into ABB”s electrical products division and become a new business unit – Industrial Systems Business Unit (EPI S ). EPIS is headquartered in Atlanta, Georgia, and has approximately 14,000 employees worldwide.The acquisition is expected to create approximately $200 million in annual cost synergies starting in the fifth year. ABB will create value through the highly complementary product and technology portfolio, especially the combination of ABB Ability™ solutions and GEIS”s large installed base. In addition, ABB will realize cost synergies from business layout optimization, supply chain cost savings and reduced sales and management expenses. The integration of GEIS is expected to reduce operating EBITDA margins by approximately 60 basis points and 260 basis points respectively for ABB Group and ABB Electrical Products in the second half of this year. After this, ABB plans to restore the operating EBIT margin of the Electrical Products Division to a range of 15% to 19% in 2020. As part of the transaction, ABB has established a long-term strategic supplier relationship with GE to provide ABB products and solutions. The acquisition also includes long-term rights to use the GE brand.Sparing no effort in comprehensive executionABB continues to benefit from ongoing cost management and productivity improvements. In the second quarter, pricing adjustments and cost savings and other measures overcame the impact of rising raw material prices and supported the group”s annual sales cost savings target of 3% to 5%.Based on ABB’s “Thousand Days Project” completed in 2017, the group continues to focus on quality and strengthen operations. Through the implementation of Lean Six Sigma projects, ABB closely follows customer feedback, carefully analyzes and closes performance gaps. Currently, ABB”s business divisions are responsible for more than 1,500 continuous improvement projects.Business-led cross-functional collaborationThe expansion of strategic partnerships in the second quarter includes the establishment of a global strategic alliance between ABB and Rittal based on previous successful cooperation to provide industrial-grade edge data center solutions, and the joint establishment of a software alliance for collaborative robots with Kawasaki Heavy Industries .ABB continues to strengthen its strategic brand positioning and cooperates with the ABB FIA Formula E Championship – which provides an excellent platform for ABB to demonstrate its leading position in the field of electric transportation.OutlookMacroeconomic indicators in Europe and the United States are trending upward, and the Chinese market is also expected to continue to grow. Overall, global markets maintain growth, but uncertainty remains high in parts of the world. Changes in oil prices and exchange rates will continue to have an impact on the company”s performance.In the long term, the energy revolution and the fourth industrial revolution have created positive development prospects for the three major market areas of power, industry, transportation and infrastructure. With good market positioning, comprehensive market and regional coverage, leading technology and outstanding financial capabilities, ABB aims to seize opportunities and achieve long-term profitable growth.

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