Swiss automation and power equipment giant ABB (NYSE:ABB) has a lot of what investors say they want these days. Not only does the company have a clean balance sheet and ample dry powder for acquisitions, but ABB has more emerging market exposure than almost any other large industrial company. While investors seem disappointed that the company's power business has not offered much energy of late, the company has done a good job of leveraging the industrial automation recovery and should be in good shape for the eventual recovery in power product demand (which typically lags industrial automation by six to 12 months).
A Good End to the Year
Although ABB's full-year decline in revenue seems disappointing in a world where industrial companies are seeing booming revenue growth, the picture is not all that bleak. ABB reported 6% revenue growth for the fourth quarter, with order growth of 18% and a full-year book-to-bill in excess of one. ABB also reported that EBIT grew 23% in the fourth quarter, due at least in part to well-controlled corporate expenses. (For more, see Utilities Keep ABB A Little Dim.)
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