ABB to exit solar inverter business, take $430M hit

Tuesday, 09. July 2019 07:39

Swiss-Swedish electronic company ABB announced on Monday it is divesting from solar inverter business, due to which it expects to take an after-tax non-operational charge of approximately $430 million in the second quarter of 2019. In a press release, ABB satiated it is selling its solar inverter division to Italian company FIMER and that most of the cost induced will pertain to cash outflows ABB will pay to the buyer from the deal closing day through 2025.

ABB said that it expects the operational earnings before interest, taxes, and amortization (EBITA) margin for its electrification business to be impacted positively by slightly more than 50 basis points and that the business as a whole would approach towards its target margin corridor of 15-19%.

"The divestment is in line with our strategy of ongoing systematic portfolio management to strengthen competitiveness, focus on the quality of revenue and higher growth segments," Tarak Mehta, President of ABB's Electrification business said.

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Breaking the News / MA