ABB CEO targets profitability as COVID-19, oil price slump bite

ZURICH, June 10 (Reuters) - ABB will focus on profitability before growth, Chief Executive Bjorn Rosengren said on Wednesday, as the Swiss engineering group tackles weaker demand caused by the COVID-19 pandemic and the drop in oil prices.

Rosengren, in his first overview of the company’s strategy since taking over in March, confirmed ABB’s mid-term financial goals for 3-6% annual sales growth and an operational EBITA profit margin of 13-16%.

The former Sandvik boss said ABB would focus on a decentralised business model, giving more responsibility to 18 divisions, and continue to review its businesses which range from electric vehicle chargers to factory robots and industrial software.

Reporting by John Revill; Editing by Michael Shields