ABB-Vattenfall Set Up Charging Network For Electric Vehicles

ABB Ltd (NYSE:ABB) has been selected by Vattenfall, an energy utility company based in Sweden, to support it in setting up a charging network for electric vehicles in the country. ABB is providing Vattenfall with a complete solution that comprises the fast-charging station along with all the essential grid connection hardware. The solution incorporates busbars, outdoor cabinet, fuse gear and switches.

ABB’s technology will enable Vattenfall in providing charging facilities at about 40 public locations in Sweden. Vattenfall is leveraging ABB’s Terra fast-charging station with a DC charging capacity of 50 kW, which will help in providing a future-proof connection along with remote monitoring and remote assistance functions through the ABB Ability platform.

Notably, the company’s grid connection solution for electric vehicle chargers, which is assembled in its Alingsås production facility, will help in providing a secured connection to the public power grid. In addition, the grid connection solution will support minimization of the commissioning time at sites, accelerating delivery for short project lead times. This will help the charging stations in offering a steady and reliable service to drivers, particularly during the severe winter conditions in Sweden.

Existing Business Scenario

ABB believes that its strengthening business in the United States, coupled with stable orders across businesses in Asia, Middle East and Africa region including India, Japan, Singapore and the UAE will boost competency. The company has been steadily strengthening business through acquisitions. In this regard, ABB’s buyouts of Intrion (September 2018) and GE Industrial Solutions (June 2018) have been adding value to its business. In addition, strategic corporate collaboration deals with renowned companies are expected to be beneficial.

However, rising cost of sales has been a major concern for the company. The metric rose 2.9% in first nine months of 2019 year over year. Also, ABB incurred costs of $79 million, primarily on account of employee severance costs, in the same time frame. Escalation in costs and operating expenses, if not controlled, can severely affect margins and profitability.

In the past six months, this Zacks Rank #3 (Hold) stock has returned 20.5% compared with the industry’s growth of 19.6%.

Key Picks

Some better-ranked stocks from the Zacks Industrial Products sector are Albany International Corporation (NYSE:AIN) , Allegion plc (NYSE:ALLE) and Energous Corporation (NASDAQ:WATT) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Albany International pulled off average positive earnings surprise of 21.27% in the trailing four quarters.

Allegion delivered average positive earnings surprise of 2.17% in the trailing four quarters.

Energous delivered average positive earnings surprise of 6.67% in the trailing four quarters.

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