UPDATE 4-ABB CEO's shock exit overshadows record results

(Adds chairman quotes, updates shares, recasts)

By Katie Reid

ZURICH, Feb 13 (Reuters) - The surprise departure of Chief Executive Fred Kindle from engineering group ABB (ABBN.VX: Quote, Profile, Research, Stock Buzz) on Wednesday overshadowed record results and sent the group's shares tumbling on uncertainty about its future.

Investors ignored pleas for calm by Chairman Hubertus von Gruenberg -- who refused to elaborate on Kindle's departure except that there were no problems with compliance or performance -- and sold down shares over 10 percent.

"Fred Kindle is leaving the company due to irreconcilable differences of opinion about how to lead the company," the group said in a statement. Chief Financial Officer Michel Demare will serve as interim CEO.

Von Gruenberg said the Swiss-based group maintained its earnings targets and strategy. "The entire framework of ABB stays intact. That is more than justified because the track we are on is so successful and we don't change a winning concept," said von Gruenberg.

But the exit of one of Switzerland's business heroes left many questions unanswered -- not only what the "irreconcilable differences" were and who would lead the company, but also whether ABB would now splash out on bigger acquisitions.

Kindle was admired for restoring growth and stability to a group brought near collapse by heavy debts.

"Fred Kindle is probably the most successful CEO in ABB's history and for him to resign during ABB's most successful trading period will be a shock to the market," said analysts at Citibank in a note to clients.

"We had a high level of confidence in CEO Kindle that he would make the right decisions on acquisitions and his departure now creates substantial uncertainty," analysts at bank J.P. Morgan said in a note to clients.

Investors have long sought clues as to how ABB, which is benefiting from a boom in electricity generation, plans to spend reserves as speculation mounts about acquisitions. Analysts estimate ABB has a $5 billion cash pile.

Kindle maintained large takeovers were not on the cards, in part due to high asset prices, and analysts had speculated the group would target smaller deals worth $1.5 billion to $2 billion instead.

FORECAST-BEATING RESULTS

Kindle's departure eclipsed record results by ABB, whose fourth quarter profit rose to $1.8 billion and exceeded even the highest expectations, in part due to asset sales and tax benefits.

ABB also announced a share buyback programme worth up to 2.2 billion Swiss francs ($1.99 billion) and doubled its dividend.  Continued...