ABB (ABB)
continues to be a relatively underwhelming, if not disappointing,
player in the multi-industrial space, as the company largely missed out
on the recent up-cycle due to various execution issues. While process
automation and electrification are still performing relatively well, a
global slowdown in discrete manufacturing and automation is creating
some near-term challenges, and there is a lot left to do in M&A
integration and margin improvement.
The announcement
of the departure of the CEO could improve the tone somewhat, but this
change is not coming from a place of strength and it is going to take
time for the next CEO to make meaningful positive impacts – assuming the
board lets that happen. While I do still see avenues for ABB to do
better, the upside I see is certainly “at risk” and I don’t regard this
as a core holding at this point.
Read more here:
ABB Balancing The Reality Of Familiar Problems And New Leadership Opportunities
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