Electrical engineering company ABB Ltd. (ABB) Chief Executive Joe Hogan said he sees indications that the decline in profitability in its Power Products unit is coming to and end.

"Our hope is that start to see a bottoming of the price pressure that [Power Products] has experienced over the last two or three years," Hogan said on ABB's YouTube channel, in conjunction with the company's fourth quarter report.

"The long-cycle nature of this business is indicating that is going to occur soon," he added.

ABB's Power Product unit, which includes high-voltage products such as circuit breakers and power transformers, saw its operating profit margin decline to 11.4% in the fourth quarter of 2011 from 15.6% a year earlier.

However, Hogan said the unit has been involved in some extensive cost cutting. Out of the $1 billion of costs ABB cut in 2011, power products represented almost 40%.

"We have had a plan to reverse the decline [in Power Products profitability], or at least mitigate it," Hogan said.

-By Sven Grundberg, Dow Jones Newswires; +46-8-5451-3098; sven.grundberg@dowjones.com

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