Note on new division structure, targets
ABB announced in its 2002 third-quarter results that it streamlined its divisional structure. Two new core divisions were created: Power Technologies, which combines the former Power Technology Products and Utilities divisions, and Automation Technologies, which combines the former Automation Technology Products and Industries divisions.
ABB’s full-year 2002 results are shown for the new division structure on a pro forma basis on pages X and Y. For purposes of comparison, results for the new divisions for each quarter of 2002 and for the full year 2001 are provided in Appendix 2, page 41.
Power Technologies: The division maintains its targets for compound average annual revenue growth of 5.3 percent from 2002 through 2005, and an EBIT margin of 10 percent for 2005. For 2003, divisional revenues are expected to grow by 5.3 percent, with an EBIT margin of 7 percent.
Automation Technologies: The division aims to achieve compound average annual revenue growth of 3.3 percent from 2002 through 2005, and an EBIT margin target of 10.7 percent for 2005. For 2003, divisional revenues are expected to grow by 3 percent with an EBIT margin of 7.1 percent.