The Wall Street Journal-20080215-ABB Predicts Double-Digit Growth

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ABB Predicts Double-Digit Growth

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ZURICH -- Swiss engineering company ABB Ltd. expressed confidence in its 2008 outlook and forecast double-digit growth in its key businesses.

ABB, which surprised markets on Wednesday with the departure of Chief Executive Fred Kindle over "irreconcilable differences" on the company's strategy, yesterday said it expects revenue growth of about 10% in its automation division this year and sales growth of about 15% to 20% in its power-related activities.

Also Wednesday, ABB had detailed its key earnings figures, which showed fourth-quarter net profit rose to $1.8 billion from $422 million.

ABB said its net-cash position stood at $5.4 billion at the end of 2007, up from $3.3 billion at the end of the third quarter. The sharp rise was partly due to the sale of a noncore unit.

ABB Chairman Hubertus von Grunberg said the company has time to seek a new CEO. He declined to give further details about the reasons for Mr. Kindle's departure.