Seeking Alpha: ABB Posts Better Margins, But The Growth Outlook Is Still Weak

The last quarter has been relatively sedate for the automation companies, ABB (NYSE:ABB) included, as the companies recovered from their panic lows in February and March then hit a flatter patch as the major economies of the world aren't really in a state to support big corporate capex investments.

For ABB's part, the company continues to focus on what it can control - cutting costs and flattening the organization structure (taking out layers of middle management), expanding service offers, and trying to pivot toward higher-growth, tech-driven opportunities in areas like power and automation. I continue to believe that ABB looks undervalued, but that comes with the caution that ABB is heavily exposed to weak commodity verticals like minerals, metals, and energy and there is still substantial uncertainty as to what management will do with its Power Grids business and its M&A plans.

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ABB Posts Better Margins, But The Growth Outlook Is Still Weak