ABB Ltd poached a Siemens executive as it shakes up its robotics division, where profit margins have shrunk for five straight quarters amid sluggish demand for the unit’s motors, drives and factory robots.
ABB named Sami Atiya as head of the Discrete Automation and Motion Division and relegated its former boss, Pekka Tiitinen, to head of the country’s Finland operations, the Swiss engineering company said in a statement on Monday.
Atiya worked at Siemens for 18 years, since 2011 as CEO of the Mobility and Logistics division.
The automation unit where Atiya will assume command has seen its operating margin on earnings before interest, taxes and amortisation decline to about 13 percent from more than 18 percent as demand for its motors and drives slumped and as U.S. and Chinese customers ordered fewer robots.
Tiitinen has sought to stanch declines with a wave of job cuts, including at factories in his native Finland.
In its announcement of Tiitinen’s exit on Monday, ABB highlighted Atiya’s experience in restructuring as a key reason why he was hired.
“Sami Atiya has tremendous experience in leading industrial portfolios across a wide range of markets and geographies as well as a proven track record of delivering strong results in growth, restructuring and integration situations,” the company said in its statement.
Source: Reuters
