Technology giant ABB has reported on a year of transformation ahead of the 'carve out' of its Power Grids business, sold to Hitachi.

Chairman and chief executive Peter Voser is also preparing to hand over the chief executive reins to Björn Rosengren, who takes over the position on March 1.

Voser says the shift away from power transmission and large-scale infrastructure projects, has been complemented by a focus on simplifying the company's business model and operational structure to create "a leaner, more agile and customer-focused ABB".

He describes the year's performance as "resilient", with the transformation, slightly improving revenues and operating margins, against a backdrop of more challenging markets.

Income from operations of $1.9 billion, which was 13 per cent lower year-on-year, was also impacted by restructuring, Power Grids' related transaction and separation costs and charges, as well as charges from the planned sale of the solar inverters business.

Revenues grew revenues by one per cent and improved profitability, posting an operational EBITA margin of 11.1 per cent.

During the year, ABB acquired a majority stake in Chinese e-mobility solution provider Shanghai Chargedot New Energy Technology Co., and announced the divestment of businesses "not compatible with our new business model and strategy", including the solar inverters business and two Shanghai-based joint ventures which were part of GE Industrial Solutions.

Directors will propose a dividend of CHF 0.80 per share to shareholders at the annual meeting to be held on March 26.

Voser says close to 60 per cent of ABB's global revenues now come from solutions that improve energy efficiency and reduce environmental impact. "We are working to increase that percentage in the years to come," he says.

A priority in 2019has been to initiate a dialogue with employees to foster a culture of openness and collaboration, "which in turn would allow us to harness the collective creativity and experience of our talented global team," he says. Components have included CEO webcasts for employees, followed by a global employee engagement survey and the launch of a new internal social channel in which everyone in ABB, from executives to production employees, has the opportunity to share their views, best practices and ideas for improvement.

"Our survey showed high levels of engagement among ABB employees and that people take pride in working for ABB," he says.

On the technology front, innopvations have included the launch of NeoGear - described as the first major innovation in low-voltage switchgear since the 1980s - and the opening of a first research facility on the campus of the Texas Medical Center in Houston. The ABB team will work with medical staff to develop non-surgical, medical robotics systems, with applications including logistics and next-generation automated laboratory technologies.

Other innovations have included a drone-mounted mobile gas leak detection system and the remote control trial of a passenger ferry, piloted by a captain on shore.

At the end of 2019, ABB had 33,500 patent applications and registrations, of which approximately 8,500 were pending. ABB operates in more than 100 countries with about 144,000 employees. www.abb.com

The 2019 annual report has been published on its website and filed the with the US Securities and Exchange Commission. It is available electronically at www.abb.com/groupreports.