ABB confirms 5-year targets

ZURICH, Sept 12 (Reuters) - Swiss power and technology group ABB said on Wednesday the global economy had developed in line with its expectations as it confirmed all of its financial targets.

In a statement ahead of its Capital Markets Day in London. the Swiss firm said it would update investors on plans to improve competitiveness through cost-savings and productivity improvements.

Margins have come under pressure from a backlog of less profitable orders and fierce price competition particularly in its power business from Asian competitors.

To counter that competition, ABB is also looking to branch out into offering service and software packages rather than just standalone products to help increase market share.

The company said it would give details on how it plans to grow its service revenues by 20-25 percent at the Capital Markets Day.

It also plans to explain its strategy to build it position in the global industrial automation market. ABB paid $3.9 billion at the start of the year for Thomas & Betts to ramp up its presence in the North American automation market. (Reporting by Caroline Copley)