Post a Comment Print Share on Facebook

FIG – the inexorable decline of an industry icon

released in the Midst of the largest restructuring of the industry group, ABB since the merger of the Swiss BBC and Swedish Asea in 1988, the group chief Ulri

- 10 reads.

FIG – the inexorable decline of an industry icon

released in the Midst of the largest restructuring of the industry group, ABB since the merger of the Swiss BBC and Swedish Asea in 1988, the group chief Ulrich spies this week, Hofer. To him, it failed to deliver the since years promised acceleration of growth, although in almost all regions of the world, the economy is running at full speed.

From the point of view of the shareholders of the Era Spiesshofer is a failure. You benefited returns by increasing the dividend. But since he took office in September 2013, the FIGURE was share by 2 percent, while the share of the major competitors of Siemens and Schneider Electric rose by a good 20 percent. The Swiss share index, the SPI rose in this period by 56 percent. Currently, the share is 21 Swiss francs value. From a peak of 43 francs at the beginning of the Millennium, as well as spiesshofer's price target between 30 and 35 Swiss francs, the paper is far from that.

Spiesshofer disguised in the media release of Wednesday, the wrong position of the group. He had the quote, he passed his interim successor, Peter Voser "a well-trimmed FIG-ship whose course is set, and the journey takes". The opposite is true: In all four areas of the business, the margins are decreased in the first quarter; in two divisions, sales fell. The earnings per share is also in the descent, which pushes, according to reports, the main shareholders of the Swedish Wallenberg family, to concern. It is possible that this was the decisive factor for spiesshofer's forced farewell.

In thirty years of worldwide 215 000 to 100'000 employees

FIG, this is in decline – however, before Spiesshofer entered the captain's bridge. To the number of employees is the extent of the descent is discretion: After the merger of BBC and Asea to ABB employees worldwide 160'000 employees. The first chief of the new structure, the Swede Percy Barnevik, bought then as wild 150 company . Soon after, FIG 215'000 employees are counted, the turnover grew to almost Double.

But shortly thereafter, the decay, because the FIG was in a financial crisis. In 2000, they sold the locomotives, and the construction of the power station – the former core business, and the Pride of generations of BBC staff. It was a distress sale. That's not enough. It showed that Barnevik had neglected during his shopping tour in the rush of the risks. So he bought for $ 1.6 billion in a U.S. power plant builders, has been inundated with asbestos victims with claims for damages. 2002 FIG therefore, financially on the brink. The former chief financial officer Peter Voser – today, Chairman of the Board, and since Wednesday, interim group head – had a decisive role in the rescue. This cost 12'000.

a Further drastic reduction waves followed. Although FIG recovered in the meantime from time to time and under spiesshofer's predecessor, made a strong recovery companies bought one today, only 147'000 employees. And soon, there will be significantly less, because with the announced sale of the electricity network business – the FIG of his ascension to the world group – change owed 36'000 employees of the Japanese Hitachi group. Makes 111'000 Employees.

However, this number is not carved in stone, because FIG is the matrix organization and most of the countries, organisations dissolve. Target annual savings of $ 500 million, which is likely to mean the removal of several Thousand. FIG stock is now approaching threat of the mark of 100'000 employees, i.e., about the staff, the BBC prior to the merger.

Whether or not the shrinkage leads to success, it is doubtful

Switzerland is affected by the decline. To the best of times, employees of the BBC in this country is 22'000 employees, of which alone in the place where it was founded in Baden AG 15'000. As Ulrich Spiesshofer took office, this figure had been already on the 7400, then rose until the end of 2014 to 7540. Since then, it went down. Meanwhile, FIG has in Switzerland, 6700 employees. With the sale of the electricity network business to Hitachi, this number will decrease to 3900. The ongoing renovation is expected to cost more jobs, especially at the headquarters in Zurich-Oerlikon and at the management features of ABB Switzerland. With 4000 employees of ABB, which is one of the largest employers in Switzerland, once inside, is, at best, a small and large companies.

"This is a bitter loss," says the former ABB-Switzerland-in-chief Edwin Somm. "But it is not so tragic, if the company is successful, and the people." However, this is not at all sure how two decades ago, the sale of the power plant division has shown. After these had fallen into the hands of the French Alstom, kriselte the business so much that from the original 6000 Points after the four removal-half laps remained. Three years ago, and sold to Alstom in the area of the US industrial giant General Electric. Shortly after this announced that he was going to swipe in Aargau, at a stroke, 1200.

Investor calls for more smashing

An end to the decline of FIG. Because the Board of Directors has decided that the proceeds of around 8 billion Swiss francs from the sale of the electricity network business through a share buy-back to shareholders. Thus, it is clear that he has no ideas on how he could have the money in promising businesses are stuck.

FIG is a further dramatic reduction. The US investment company Artisan Partners, which now holds over 3 percent of the shares and, thus, the fourth-largest shareholder, has demanded this week that FIGURE should be split in at least two other business units. The former industry would be colossus not only in Switzerland, but world-wide importance lose.


This Text is from the current issue. Now all of the articles in the E-Paper of the Sunday newspaper, read: App for iOS App for Android – Web-App (Sunday newspaper)

Created: 20.04.2019, 19:05 PM

Avatar
Your Name
Post a Comment
Characters Left:
Your comment has been forwarded to the administrator for approval.×
Warning! Will constitute a criminal offense, illegal, threatening, offensive, insulting and swearing, derogatory, defamatory, vulgar, pornographic, indecent, personality rights, damaging or similar nature in the nature of all kinds of financial content, legal, criminal and administrative responsibility for the content of the sender member / members are belong.