Switzerland-based engineering group ABB is to take $225m in restructuring charges as it overhauls its business.
The Switzerland, Sweden and New York-listed group will transfer segments of its power grids and automation infrastructure businesses into joint ventures.
It will also discontinue some of its robotics and rail industry related business.
“These actions are in line with our strategy to shift our centre of gravity towards strengthened competitiveness, higher growth segments and lower risk,” said ABB chief financial officer Timo Ihamuotila.
Abb said the revamp would cut fourth-quarter, pre-tax operating profits by about $150m and crimp non-operational income by $75m.
ABB will form a joint venture for electrical substation projects with Canadian engineer SNC-Lavalin. It already has a joint venture with Saudi Arabia-based Arkad Engineering and Construction for oil and gas related business.