...Diversified Business Profile: ABB Ltd's business profile benefits from leading positions in the power and automation equipment markets, its size and scale, a high level of product and geographical diversification and an above-average exposure to high-growth, low-cost emerging markets. The group also benefits from a near-even mix between early-, mid- and late-cycle end-markets, which has improved from three years ago when its business was predominantly late cycle. In addition, its growing services business (20% of sales) provides relatively stable income and mitigates the inherent volatility of its end-markets. These factors collectively resulted in limited cyclicality during the downturn. Emerging Markets Drive Growth: Organic growth over the next two years will be supported by the group's above-average exposure to emerging markets (EMs) compared with other rated capital goods companies. The group generates around 50% of its revenues in EMs and we expect the share of revenues from these...
