One of the world’s top manufacturers of industrial robots is planning to spin that business off into a standalone company in the coming months.
Industrial conglomerate ABB announced Thursday that it expects its robotics division to separate from its other operations and begin trading as a new public company in roughly a year’s time.
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ABB Robotics is the world’s second-largest robotics maker, lagging only Japan’s FANUC in a market that remains poised for growth amid long-term labor challenges in manufacturing. Of late, however, the business has struggled due to a slowdown in the automotive sector and, most recently, concerns about the impact of U.S. tariffs on the global economy.
Company officials added that the robotics business and the rest of ABB’s operations have different market and demand characteristics, along with “limited business and technology synergies,” contending that each would benefit from “a more focused governance and capital allocation.”
The segment saw 2024 revenues of $2.3 billion, which amounted to 7% of the overall total posted by ABB Group, and it employs about 7,000 people. Reuters noted that the spinoff would represent the biggest change at the Swiss company since the 2018 sale of its power grid business to Hitachi.
ABB also posted its latest quarterly earnings on Thursday, including $9.2 billion worth of orders in the first quarter and $7.9 billion in revenue.
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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
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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.
