Cost savings initiative
In 2013, 2012 and 2011, we executed cost saving measures to sustainably reduce ABB’s costs and protect our profitability. Costs associated with these measures amounted to $252 million, $180 million and $164 million in 2013, 2012 and 2011, respectively. Estimated cost savings initiatives amounted to around $1.2 billion in 2013, and $1.1 billion in each of 2012 and 2011. 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.