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In a disclosure that echoes the recent travails of its German rival Siemens, Switzerland-based automation technology supplier ABB Inc. on Friday announced that it has made a fourth-quarter, pre-tax provision of $850 million in the face of corruption investigations in the United States and Europe.
The company also attributed the set-aside to the “anticipated impact of a pending tax dispute, asset write-downs, and restructuring charges relating to the weaker business environment.”
Disclosure of the suspicious activities at the heart of the corruption probes dates back to mid-2007, when ABB sold its Lummus Global unit. At the time, ABB divulged that its due diligence in preparing for the divestiture had unearthed “certain suspect payments in a number of countries.”
Chris Chiappinelli
Managing Automation
December 22, 2008