Cost savings initiative
In 2012, we continued cost saving measures to sustainably reduce ABB’s costs and protect our profitability. Costs associated with these measures amounted to $180 million and $164 million in 2012 and 2011, respectively. For further details of these cost saving measures and our cost take-out program (which was substantially completed in 2010) see “Note 22 Restructuring and related expenses” to our Consolidated Financial Statements.
In both 2012 and 2011, estimated cost savings initiatives amounted to around $1.1 billion. These savings were achieved by optimizing global sourcing (excluding changes in commodity prices), through reductions to general and administrative expenses, as well as adjustments to our global manufacturing and engineering footprint.