ZURICH, Jan 15 (Reuters) - ABB said on Thursday it expected the impact on its business of the Swiss franc’s appreciation against the euro to be limited, in the wake of the Swiss National Bank’s surprise move to scrap its three-year-old currency cap.
“From a business perspective, we have typically less than 5 percent of total consolidated revenues in Swiss francs, with the majority exported,” the Swiss engineering group said in a statement.
“ABB has been mitigating the strong Swiss Franc by optimizing sourcing costs, hedging and by increasing productivity.”
Switzerland’s central bank shocked financial markets on Thursday by scrapping a three-year-old cap on the franc, sending the safe-haven currency soaring against the euro and stocks plunging amid fears for the export-reliant Swiss economy.
Reporting by Joshua Franklin and Caroline Copley