1st Quarter Results

ABB Ltd
29 April 2004





ABB posts stronger results in Q1


Sixth quarter in a row of higher core division earnings


•        Core divisions maintain double-digit order growth
•        Group EBIT more than doubles to $233 million
•         Cash flow from operations improves $787 million versus Q1 2003



2004 Q1 key figures

(US$ in millions)                                              Q1 04             Q1 03(1)        Change

Orders           Group                                         5,379              4,929              9%
                 Power Technologies                            2,388              2,046             17%
                 Automation Technologies                       3,006              2,432             24%
Revenues         Group                                         4,356              4,317              1%
                 Power Technologies                            1,852              1,767              5%
                 Automation Technologies                       2,507              2,180             15%
EBIT(2)          Group                                           233                 95
                 Power Technologies                              139                136              2%
                 Automation Technologies                         213                155             37%
                 Non-core activities                             (2)               (55)
                 Corporate                                     (117)              (141)
EBIT margin      Group                                          5.3%               2.2%
                 Power Technologies                             7.5%               7.7%
                 Automation Technologies                        8.5%               7.1%
Loss from discontinued operations                               (76)               (15)
Net income (loss)                                                  4               (45)
Basic net income (loss) per share                               0.00             (0.04)

(1) Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003; (2)  Earnings before interest and taxes



Zurich, Switzerland, April 29, 2004 - ABB's core Power Technologies and
Automation Technologies divisions today reported a further quarter of improved
results, marked by continued growth in orders received, higher earnings before
interest and taxes (EBIT) and significantly improved cash flow from operations.



The core divisions' strong results, combined with lower losses in Non-core
activities and Corporate costs, contributed to a break-even net income for the
first quarter of 2004.



Higher losses from Discontinued operations were related primarily to
asbestos-related charges, currency exchange losses on the equity value of the
insurance business and divestment-related costs. The downstream Oil, Gas and
Petrochemicals business turned in a break-even operational performance in the
quarter.



'We continue to deliver on our promises,' said Jurgen Dormann, ABB chairman and
CEO. 'This was the sixth consecutive quarter of higher earnings for our core
businesses. Order growth remained solid, continuing the trend we saw at the end
of 2003. Cash flow in the core divisions was up by more than $200 million
compared to the same quarter a year ago.'



Asia was again the main driver of order growth, while the modest growth seen in
western Europe and North America at the end of 2003 continued into the first
quarter of 2004. Revenues in Automation Technologies were supported by the order
growth in the second half of 2003, while Power Technologies' revenues reflect
the low order level of late 2002 and the first half of 2003.



Summary of first quarter results

Combined orders received for the core divisions in the first quarter of 2004
grew 20 percent to $5,394 million (up 10 percent in local currencies: 8 percent
for Power Technologies and 11 percent for Automation Technologies). The
improvement was fueled mainly by a more than 50-percent increase in orders from
Asia and double-digit local-currency growth in base orders (less than $15
million). Orders grew modestly in North America and western Europe versus the
first quarter of 2003 and continued the growth trend seen in the second half of
last year.



Combined base orders were 21 percent higher in the core divisions compared to
the same quarter in 2003, 10 percent higher in local currencies. The Power
Technologies division recorded a double-digit local-currency increase in base
orders. Large orders (more than $15 million) amounted to $346 million, 7 percent
higher in local currencies than the first quarter of 2003. Large orders were up
in Automation Technologies from a very low level in the same quarter last year,
and down in Power Technologies. Large orders in the core divisions amounted to
6.4 percent of total orders in the first quarter of 2004 compared to 6.7 percent
in the same quarter last year.



At the group level, orders were up 9 percent to $5,379 million. Expressed in
local currencies, orders were down 2 percent compared to the same period last
year, reflecting the divestment of most of the Building Systems businesses since
the first quarter of 2003.



The combined order backlog for the core divisions rose 8 percent to $10,655
million at the end of March 2004 compared to $9,856 million at the end of the
fourth quarter of 2003 (up 10 percent in local currencies). The order backlog in
Power Technologies was up 7 percent (8 percent higher in local currencies), and
was 11 percent higher in Automation Technologies (up 13 percent in local
currencies). The order backlog for the Group at the end of the first quarter was
$10,663 million, up 6 percent compared to the fourth quarter of 2003 (8 percent
higher in local currencies).



Revenues in the first quarter rose 5 percent for the Power Technologies division
(down 4 percent in local currencies) and 15 percent for Automation Technologies
(up 3 percent in local currencies). The local-currency revenue decline in Power
Technologies reflects the lower levels in the first half of 2003 of large
project orders, which may take up to several quarters before they are recognized
as revenues. In Automation Technologies, the revenue growth in the first quarter
of 2004 is the result of the order growth seen in the second half of 2003.



Regionally, core division revenues were significantly higher in Asia
(particularly China and India) and eastern Europe, slightly higher in the Middle
East, Africa and western Europe, and lower in the Americas.



For the group, revenues in the quarter were $4,356 million, flat compared to the
first quarter of last year (down 9 percent in local currencies), primarily the
result of the divestment since the first quarter of 2003 of several of the
Building Systems businesses. These divested businesses reported revenues in the
first quarter of 2003 of approximately $360 million.



EBIT in the core divisions was $352 million in the first quarter, a 21-percent
increase from $291 million in the same period in 2003. EBIT losses in Non-core
activities were reduced to $2 million from a loss of $55 million in the
year-earlier period, reflecting lower losses from the Building Systems business
in Germany and remaining Structured Finance. Corporate costs were also lower at
$117 million compared to $141 million in the same period last year.



As a result, EBIT for the group was $233 million ($95 million in the first
quarter of 2003).



Included in the group's first-quarter EBIT is net expense of $4 million reported
in Other income (expense), net, comprising restructuring costs, capital gains
and losses, and income from equity-accounted companies. Restructuring charges of
$32 million ($33 million in the first quarter of 2003) included costs of $18
million from the Step change productivity improvement program, restructuring to
prepare businesses in Non-core activities for disposal and site consolidations
within Power Technologies. These costs were mostly offset by net capital gains
of $6 million recorded in the first quarter of 2004, compared to a capital loss
of $9 million in the same period last year. The 2004 figure includes a capital
gain of $12 million on the finalization of the sale of the Building Systems
business in Switzerland. Income from equity-accounted companies amounted to $22
million ($18 million in the first quarter of 2003). There were no significant
asset write-downs in the quarter.



ABB's Step change productivity improvement program yielded savings of $240
million in the first quarter of 2004 on restructuring costs of $18 million. The
program aims to increase the competitiveness of ABB's core businesses, reduce
overhead costs and streamline operations by approximately $900 million on an
annual basis by 2005.



As of March 31, 2004, ABB employed 113,000 people, compared to 116,500 at the
end of 2003. Included in the difference are about 1,100 Step change-related job
reductions. ABB also divested businesses in the quarter employing about 2,000
people, most of whom were employed in the Building Systems businesses.



The Group EBIT margin in the quarter was 5.3 percent compared to 2.2 percent in
the same quarter of 2003.



Finance net(1) was negative $76 million compared to negative $125 million in the
first quarter of 2003. The difference primarily reflects lower financing costs
and the non-recurrence of a $30 million marketable security write-down in the
first quarter of 2003.



Included in Interest and other finance expense is an aggregate expense of $35
million (compared to $23 million for the same quarter in 2003) arising from the
mark-to-market of the equity option embedded in the $968 million worth of
convertible bonds issued in 2002, combined with the continued amortization of
the discount on issuance of these bonds. The planned change to the convertible
bonds, announced on April 21, 2004 - whereby the bonds will be convertible into
American Depositary Shares (ADS) instead of ordinary shares denominated in Swiss
francs - will, if approved by the bondholders, eliminate the volatility in
earnings coming from the mark-to-market of the embedded equity option ($23
million of the total $35 million aggregate charge in the first quarter of 2004).



The net loss in Discontinued operations amounted to $76 million, compared to a
net loss of $15 million in the first quarter of 2003. The result includes an
additional after-tax loss of $30 million related to currency exchange losses on
the announced sale of the reinsurance business.



Also included in the Discontinued operations result is a $17-million net loss in
the Oil, Gas and Petrochemicals business and costs of $27 million related to
ABB's asbestos liability. (For more details on Discontinued operations, please
refer to page 8).



ABB's net income for the first quarter amounted to $4 million, compared to a net
loss of $45 million for the same period in 2003.



Balance sheet and debt

Cash and marketable securities at the end of March 2004 amounted to $3.8 billion
(excluding Discontinued operations), down from $5.1 billion at the end of
December 2003.



The reduction results primarily from the repayment of debt as a result of bonds
maturing, as well as the buy-back of bonds. At the end of March 2004, total debt
(defined as total short and long-term borrowings) amounted to $6.7 billion,
compared to $7.9 billion at December 31, 2003. Included in ABB's total debt is
approximately $600 million in bonds due for repayment during the remainder of
2004.



Stockholders' equity at March 31, 2004, amounted to $3,013 million compared to
$3,026 million at the end of December 2003.



Cash flow from operating activities

$ in millions                                               Q1 2004               Q1 2003            Change
Power Technologies                                             (71)                 (119)                48
Automation Technologies                                          97                  (74)               171
Non-core activities                                              64                 (176)               240
Corporate                                                     (174)                 (306)               132
Oil, Gas and Petrochemicals businesses                         (57)                 (253)               196
Total net cash used in operating activities                   (141)                 (928)               787





Net cash used in operations for the group in the first quarter of 2004 was $141
million, an improvement of $787 million compared to the first quarter of 2003.



The two core divisions generated a combined cash flow from operations in the
quarter of $26 million, compared to a cash outflow of $193 million for the same
period in 2003. The improvement reflects both increased earnings and successful
net working capital management aimed in part at reducing seasonal cash flow
fluctuations.



Non-core activities generated cash flow from operations of $64 million in the
quarter, an improvement of $240 million from the first quarter of 2003,
resulting mainly from dividend receipts from the Equity Ventures business and
improved operational performance in Building Systems.



Cash outflow from Corporate amounted to $174 million in the quarter and included
cash payments to the Settlement Trust for ABB's U.S. subsidiary Combustion
Engineering (CE) of $19 million. Total asbestos cash outflows, including fees
and insurance collections, amounted to $21 million in the quarter, compared to
$226 million in the same period last year.



Divestments

The company sold its Building Systems business in Switzerland during the first
quarter of 2004 and booked a gain on the disposal of $12 million in Other income
(expense), net. The sale of the company's cable business in Germany was
finalized in January 2004. The results of the sale were booked in the fourth
quarter of 2003.



The sale of ABB's reinsurance business announced late last year for cash
proceeds of approximately $425 million was finalized on April 16, 2004, for
total cash proceeds of approximately $433 million to be reported in the second
quarter results.



Asbestos

On July 31, 2003, a U.S. district court approved a pre-packaged Chapter 11
protection plan filed earlier in the year by a U.S. subsidiary of ABB,
Combustion Engineering. Following the court's approval, an appeals period began
on a fast-track basis before the U.S. 3rd Circuit Court of Appeals. All
documentation was received by the court in October 2003 and a hearing date has
been set for June 3, 2004. ABB remains confident that the plan will be approved.



Group outlook

The company confirms its 2005 targets for revenue, EBIT, total debt and gearing
(total debt divided by total debt plus stockholders' equity, including minority
interest).



From 2002 to 2005, ABB expects compound average annual revenue growth of 4
percent in local currencies. The Power Technologies division expects compound
average annual revenue growth of 5.3 percent in local currencies. The Automation
Technologies division expects compound average annual revenue growth of 3.3
percent in local currencies.



For 2005, the Group's target EBIT margin remains 8 percent in U.S. dollars. The
2005 EBIT margin targets in U.S. dollars for the Power Technologies and
Automation Technologies divisions remain at 10 percent and 10.7 percent,
respectively.



The company intends to reduce total debt to about $4 billion and gearing to
approximately 50 percent by 2005.



Revenue and margin targets exclude major acquisitions, divestitures and business
closures.



Divisional performance Q1 2004





Power Technologies
$ in millions (except where indicated)                   Q1 2004              Q1 2003(1)           Change
Orders                                                     2,388                 2,046                17%
Revenues                                                   1,852                 1,767                 5%
EBIT                                                         139                   136                 2%
EBIT margin                                                 7.5%                  7.7%
Restructuring costs (included in EBIT)                       -17                   -11

(1) Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003 and of substation automation activities from the Automation
Technologies division, effective January 1, 2004.



Orders received in the Power Technologies division rose 17 percent to $2,388
million in the first quarter of 2004 (8 percent in local currencies), driven by
continued growth in Asia and eastern Europe, both up more than 50 percent.
Growth remained modest in western Europe and North America. The business
environment in Latin America remained burdened by financial and political
uncertainty.



Orders rose at a double-digit pace in the three product business areas -
High-Voltage Products, Medium-Voltage Products and Transformers. Orders were
also higher in the Utility Automation business area, reflecting a large order
from Russia and higher base orders. Orders increased slightly in the Power
Systems business area as improved base order business compensated for fewer
large orders compared to the first quarter of 2003.



Revenues in the quarter were 5 percent higher at $1,852 million (down 4 percent
in local currencies). Expressed in local currencies, revenues were higher in
High-Voltage Products, Medium-Voltage Products and Transformers. These gains
were offset by lower local-currency revenues in Utility Automation and Power
Systems, reflecting the weak demand for large projects in the global power
sector experienced in late 2002 and the first half of 2003, and the
correspondingly lower order intake during that period.



First-quarter EBIT increased by 2 percent to $139 million compared to the
year-earlier period despite higher restructuring charges related to continued
implementation of the division's focused factory and focused engineering
strategy. The division continued to benefit from productivity improvement
initiatives, including the Step change program. As a result of the higher
associated restructuring costs, the EBIT margin decreased to 7.5 percent from
7.7 percent. The EBIT margin before restructuring increased from 8.3 percent in
the first quarter of 2003 to 8.4 percent in the same quarter this year.



Cash flow from operations for the division improved from a net cash outflow of
$119 million to a net cash outflow of $71 million as the result of general
improvements in net working capital management and especially in inventory
reduction.



Automation Technologies
$ in millions (except where indicated)                   Q1 2004              Q1 2003(1)           Change
Orders                                                     3,006                 2,432                24%
Revenues                                                   2,507                 2,180                15%
EBIT                                                         213                   155                37%
EBIT margin                                                 8.5%                  7.1%
Restructuring costs (included in EBIT)                        -9                   -16

(1) Adjusted to reflect the move of substation automation activities to the Power
Technologies division, effective January 1, 2004



The Automation Technologies division reported a 24-percent increase in orders in
the first quarter of 2004 to $3,006 million compared to the same quarter last
year (up 11 percent in local currencies).



Both base orders and large project orders grew in the quarter, contributing to
double-digit order growth in the Automation Products and Process Automation
business areas. Base order growth was led by the launch of several new products,
mainly the Industrial IT process control system 800xA and a new line of
energy-efficient low-voltage drives. Orders were flat in Manufacturing
Automation as demand for robotics systems in the U.S. and European automotive
sectors remained weak.



Orders continued to grow at a double-digit pace in Asia, led by more than
50-percent growth in China and India. Demand was also higher in both eastern and
western Europe. Order growth in North America continued the positive trend seen
at the end of 2003, with U.S. orders up compared to the fourth quarter of 2003,
excluding the flat order development in the automotive sector. Compared to the
first quarter of 2003, North American orders were flat.



Revenues rose 15 percent (3 percent in local currencies) to $2,507 million
compared to the first quarter of last year, led by the Automation Products
business area which reported higher revenues in both U.S. dollars and local
currencies. Revenues in local currencies were flat in Process Automation and
lower in Manufacturing Automation. It was the sixth consecutive quarter of
higher revenues compared to their corresponding year-earlier quarters.



Earnings before interest and taxes (EBIT) also increased for the sixth
consecutive quarter, up 37 percent to $213 million compared to the same quarter
in 2003. The improvement lifted the EBIT margin to 8.5 percent from 7.1 percent.
The main contributors were ongoing productivity improvements achieved on lower
restructuring costs. The EBIT margin before restructuring increased to 8.9
percent in the first quarter of 2004 from 7.8 percent in the same period last
year.



Cash flow from operations for the division rose to $97 million, an improvement
of $171 million compared to net cash used in operations of $74 million in the
first quarter of 2003. In addition to the stronger earnings, the biggest
contributor to the improvement was tighter management of working capital across
all business areas.



Non-core activities
EBIT ($ in millions)                                                  Q1 2004                     Q1 2003(1)
Equity Ventures                                                            22                           22
Remaining Structured Finance                                              (9)                         (37)
Building Systems                                                         (17)                         (33)
New Ventures                                                                0                          (2)
Other non-core activities                                                   2                          (5)
Total                                                                     (2)                         (55)
Restructuring costs (included in EBIT)                                    (3)                          (2)

(1) Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003



Revenues from Non-core activities were down 75 percent from the 2003 period,
primarily the result of the divestment since the first quarter of 2003 of
several of the Building Systems businesses. These divested businesses reported
revenues in the first quarter of 2003 of about $360 million.



Non-core activities reported an EBIT loss of $2 million in the first quarter
compared to a loss of $55 million in the same period of 2003. Operational
improvements in the Building Systems business in Germany helped reduce the EBIT
loss in Building Systems to $17 million in the quarter compared to a loss of $33
million in the first quarter of 2003.



Corporate
EBIT ($ in millions)                                                  Q1 2004                     Q1 2003(1)
Headquarters/stewardship                                                 (99)                        (114)
Research and development                                                 (21)                         (21)
Other(2)                                                                    3                          (6)
Total                                                                   (117)                        (141)
Restructuring costs (included in EBIT)                                    (3)                          (4)

(1) Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003

(2) Includes consolidation effects, real estate and Treasury Services



Lower corporate costs in the first quarter of 2004 mainly reflect lower
personnel-related costs in the U.S. head office and the cessation of proprietary
trading and associated costs in Treasury Services.



Discontinued operations (not included in EBIT)
Net income (loss) ($ in millions)                                      Q1 2004                     Q1 2003(1)
Reinsurance business                                                      (30)                          (8)
Asbestos                                                                  (27)                            4
Oil, Gas and Petrochemicals business                                      (17)                         (12)
Other                                                                      (2)                            1
Total net loss                                                            (76)                         (15)

(1) Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003



The reinsurance business, whose results were reclassified into Discontinued
operations following its announced sale in December 2003, reported flat revenues
in the first quarter at $143 million on stable premium income. An additional net
loss after tax of $30 million was recorded in the quarter on the discontinuation
of the business, related primarily to currency exchange losses on the equity
value of the business during the first quarter of 2004.



The asbestos result is primarily due to a $24-million expense on the
mark-to-market treatment of the approximately 30 million ABB shares reserved to
cover part of the company's asbestos liabilities, compared to a gain of $15
million reported in the first quarter of 2003.



Oil, Gas and Petrochemicals

($ in millions)                                                       Q1 2004        Q1 2003        Change
Orders                                                                    764            502           52%
Revenues                                                                  599            779         (23%)
Net loss                                                                 (17)           (12)



Orders were 52 percent higher in the Oil, Gas and Petrochemicals business (43
percent in local currencies) in the first quarter of 2004 compared to the same
period in 2003, driven primarily by increased customer investments in the
downstream market, especially in Europe, including a $68-million order at an
ethylene project in Poland.



Revenues fell 23 percent (26 percent in local currencies), reflecting the
winding down and completion of several downstream projects and the lower level
of large downstream orders from late 2002 and 2003 that resulted from weaker
markets and more selective bidding. Upstream revenues rose on increased
modification and maintenance activities.



The upstream business generated a small operational profit in the quarter. On
the downstream side, the strategy implemented over the past several quarters to
move from fixed price engineering, procurement and construction contracts
towards lower-risk reimbursable contracts, plus tighter project cost controls,
resulted in a break-even operational result in the quarter.



The net loss from the businesses in the quarter amounted to $17 million,
compared to a net loss of $12 million in the first quarter of 2003, resulting
mainly from costs associated with the planned divestment of the upstream
business, including costs related to the compliance review being undertaken in
cooperation with the U.S. Department of Justice.




                                    Appendix

ABB key figures Q1 2004

$ in millions                                            Q1 2004     Q1 2003(1)       % change
                                                                                 Nominal     Local
Group                                       5,379         4,929          9%        (2%)

  Power Technologies                        2,388         2,046         17%          8%
  Automation Technologies                   3,006         2,432         24%         11%
  Non-core activities                         166           837
  Corporate                                 (181)         (386)
Group                                       4,356         4,317          1%        (9%)
  Power Technologies                        1,852         1,767          5%        (4%)
  Automation Technologies                   2,507         2,180         15%          3%
  Non-core activities                         184           745
  Corporate                                 (187)         (375)
Group                                         233            95          na          na

  Power Technologies                          139           136          2%
  Automation Technologies                     213           155         37%
  Non-core activities                         (2)          (55)
  Corporate                                 (117)         (141)
Group                                        5.3%          2.2%
  Power Technologies                         7.5%          7.7%
  Automation Technologies                    8.5%          7.1%
  Non-core activities                          --            --
  Corporate                                    --            --
Net income (loss)                                              4           (45)

* Earnings before interest and taxes. See Summary Financial Information for more
information

(1) Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003




More information

The 2004 Q1 results press release and presentation slides are available from
April 29, 2004 on the ABB News Center at www.abb.com/news and on the Investor
Relations homepage at www.abb.com/investorrelations.



ABB will host a telephone conference for journalists today starting at 1000
Central European Time (CET). Callers from the UK should dial [phone].
From Sweden, dial [phone], and from the rest of Europe, please dial +41
91 610 56 00. Lines will be open 15 minutes before the start of the conference.
The audio playback of the conference call will start one hour after the end of
the call and be available for 72 hours: Playback numbers: [phone]
(U.K.), [phone] (rest of Europe) or [phone] (U.S.). The code is
339, followed by the # key.



A conference call for analysts and investors is scheduled to begin at 1500 CET.
Callers should dial [phone] (Europe and the rest of the world), +1 412
858 4600 (from the U.S.). Callers are requested to phone in ten minutes before
the start of the conference call. The audio playback of the conference call will
start one hour after the end of the call and be available for 72 hours. Playback
numbers: [phone] (Europe and the rest of the world) or [phone]
(U.S.). The code is 730 followed by the # key.



Further reporting dates for quarterly results in 2004 are July 29 and October
28.

ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 113,000 people.



Zurich, April 29, 2004

Jurgen Dormann, chairman and CEO







This press release includes forward-looking information and statements that are
subject to risks and uncertainties that could cause actual results to differ.
These statements are based on current expectations, estimates and projections
about global economic conditions, the economic conditions of the regions and
industries that are major markets for ABB Ltd and ABB Ltd's lines of business.
These expectations, estimates and projections are generally identifiable by
statements containing words such as 'expects,' 'believes,' 'estimates' or
similar expressions. Important factors that could cause actual results to differ
materially from those expectations include, among others, ABB's ability to
dispose of certain of our non-core businesses on terms and conditions acceptable
to it, ABB's ability to further reduce its indebtedness as planned, the
resolution of asbestos claims on terms and conditions satisfactory to ABB,
economic and market conditions in the geographic areas and industries that are
major markets for ABB's businesses, market acceptance of new products and
services, changes in governmental regulations, interest rates, fluctuations in
currency exchange rates and such other factors as may be discussed from time to
time in ABB's filings with the U.S. Securities and Exchange Commission,
including its AnnualReports on Form 20-F. Although ABB Ltd believes that its
expectations reflected in any such forward-looking statement are based upon
reasonable assumptions, it can give no assurance that those expectations will be
achieved.









--------------------------


(1) Finance net is the difference between interest and dividend income and
interest and other finance expenses.


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