3rd Quarter Results
ABB Ltd
28 October 2003
Posting higher Q3 orders, EBIT and cash flow, ABB announces program to
strengthen capital
• Core divisions report double-digit order, EBIT growth - revenues, cash
flow also higher
• Broad new financing plan includes equity increase, new bank credit,
bond
• Preliminary agreement signed to sell upstream oil and gas business
ABB Q3 2003 key figures (US$ millions)
July-Sept 2003 July-Sept 2002* % change
nominal
Orders Group 4,413 4,240 4%
Power Technologies 1,830 1,509 21%
Automation Technologies 2,361 2,036 16%
Revenues Group 4,798 4,491 7%
Power Technologies 1,873 1,739 8%
Automation Technologies 2,442 2,064 18%
EBIT** Group 262 (86) n/a
Power Technologies 113 97 16%
Automation Technologies 181 141 28%
Non-core activities 47 (191) n/a
Corporate (79) (133) n/a
EBIT margin Group 5.5% N/a
Power Technologies 6.0% 5.6%
Automation Technologies 7.4% 6.8%
Income/(loss) from discontinued operations (343) (141) n/a
Net income/(loss) (279) (148) n/a
Basic earnings (loss) per share (0.23) (0.13) n/a
* Restated to reflect the move of businesses to discontinued operations, a
restatement filed by the Swedish Export Credit Corp., and the impact of the
equity conversion option (bifurcation) on the convertible bond issued in May
2002. See Summary Financial Information for more information.
** Earnings before interest and taxes. See Summary Financial Information for
more information.
Zurich, Switzerland, October 28, 2003 - ABB's core divisions, Power Technologies
and Automation Technologies, today reported another quarter of improved results,
with double-digit growth in orders and earnings before interest and taxes
(EBIT), plus higher revenues and operating cash flow.
ABB again successfully lowered costs and increased margins. Operational
improvements, together with divestment gains, lifted the Group's EBIT for the
quarter to US$ 262 million, an increase of US$ 348 million compared to the same
period of 2002. A number of mainly non-cash losses in discontinued operations
led to a net loss of US$ 279 million.
ABB also said today it had signed a preliminary agreement to sell the upstream
business in its Oil, Gas and Petrochemicals division to a consortium of equity
investors.
On the back of these developments, ABB announced a broad program to strengthen
its capital and financing structure. The program comprises a proposal to issue
new shares worth the equivalent of approximately US$ 2.5 billion, a newly agreed
US$ 1 billion bank credit facility and the launch of a new bond.
'The good performance of our core divisions and the preliminary agreement to
sell our upstream business are key milestones on the road to sustainable
success,' said Jurgen Dormann, ABB chairman and CEO. 'The time has come to take
another decisive step, and that's why we have announced a financial
restructuring program designed to strengthen our balance sheet.'
Dormann said the company maintains its 2005 revenue growth, EBIT margin and debt
targets, but that it has revised the 2003 local currency revenue growth targets
for the core divisions.
'Our operational profitability continues to improve and, thanks to successes at
reducing costs, we are in a good position to tap global economic growth when it
returns,' Dormann said. 'We have picked up profitable market share in many
areas, and the net Group loss in this quarter is due to mainly non-cash losses
in businesses that we are divesting.'
Three-pillar capital program
Following the successful launch of a CHF 1 billion convertible bond in August of
this year, the capital strengthening program announced today is intended to
provide a stronger financial base for the future growth of ABB's core divisions.
It is designed to ensure ABB more flexibility on, among other issues, the timing
of its divestment program.
The first pillar in the program is a proposal to increase equity, for which the
Board of Directors has called an extraordinary general meeting for November 20
2003, to seek shareholder approval to issue up to 1.2 billion new ABB shares.
The proposed share issue will be fully underwritten by a group of banks, which
have agreed to underwrite 960 million shares at a minimum issue price of CHF
3.40 per share. This represents a 50-percent discount to the closing share price
of CHF 6.80 on October 27, 2003, and provides for an amount equivalent to US$
2.5 billion (subject to exchange rates).
Second, ABB has obtained a new, fully-committed three-year US$ 1 billion credit
facility with its banks. ABB said it does not intend to draw on this standby
facility but that it would provide additional financial flexibility. It is
subject to the successful completion of the capital increase and certain
customary conditions.
Third, the company plans to issue a new bond valued at approximately € 650
million (about US$ 750 million). The timing of the issue depends on conditions
in the financial markets. The company intends to use proceeds from the bond to
further adjust its debt repayment schedule, aiming for a stable long-term annual
maturity profile.
Disposal of upstream oil and gas business
ABB has signed a preliminary agreement to sell most of its upstream business in
the Oil, Gas and Petrochemicals division to a private equity consortium
consisting of Candover Partners Limited, JP Morgan Partners LLC and 3i Group
PLC. The price range is between US$ 925 million and US$ 975 million.
The consortium and ABB intend to work diligently towards signing a definitive
sale and purchase agreement. The documentation and the consortium's financing
arrangements are very well advanced and the definitive agreement is expected to
be signed before the end of 2003.
The timing for signing and completion is subject to the progress of a legal
compliance review, undertaken by ABB together with the consortium.
The review follows ABB's disclosure in the annual Form 20-F filing to the
Securities and Exchange Commission (SEC) in June 2003 of potentially improper
payments in an African country in connection with the upstream business. In its
subsequent internal investigations, ABB uncovered a limited number of additional
improper payments in the upstream business in three countries in Africa, Central
Asia, and South America, which ABB has recently voluntarily disclosed to the
U.S. Department of Justice and the SEC. ABB is cooperating fully with the U.S.
Department of Justice and the SEC.
The review is being designed to discover whether there are other instances of
non-compliance in the upstream business.
ABB's upstream business has 7,500 employees and had revenues of US$ 1.7 billion
in 2002. The divestment does not include the mainly downstream ABB Lummus Global
business.
ABB has changed management responsibilities for the upstream and downstream
Oil, Gas and Petrochemicals business and has given Peter Voser, ABB's chief
financial officer, direct management responsibility for the businesses until
divested. The business area manager for the upstream business, Erik Fougner,
reports to Voser. The company also said it has appointed Samir Brikho, formerly
a senior manager at Alstom and earlier at ABB, as business area manager of ABB
Lummus Global - including the floating production systems unit in Houston, Texas
- to support Voser in preparing these businesses for disposal.
Summary of third quarter results
Orders from Asia, especially China and India, continued to grow at a
double-digit pace. Demand was stable or slightly lower in most of Europe and was
weaker in the Americas. Orders grew in the Middle East. Service orders continued
to grow strongly. Product orders were supported by customers' spending on
maintenance, repair and replacement as they continued to focus on reducing
operational expenses. Capital expenditure on new plants, systems and equipment
remained cautious in most sectors. Investment in large power transmission
projects continues to be delayed.
The translation of local currency transactions into U.S. dollars for reporting
purposes positively impacted reported orders and revenues by more than 10
percent as the U.S. dollar remained weak against the Euro.
Orders received for the core divisions in the third quarter of 2003 grew 18
percent to US$ 4,191 million (up 9 percent in local currencies). Group orders
amounted to US$ 4,413 million, up 4 percent compared to the same period last
year (US$ 4,240 million) and down 5 percent in local currencies. Group orders
were affected by lower orders received in the Building Systems business within
Non-core activities, due to more selective bidding and the divestments of large
parts of the business.
The combined order backlog for the core divisions amounted to US$ 9,983 million
compared to US$ 10,048 million at the end of the second quarter (down 2 percent
in local currency terms). The order backlog for the Group at the end of the
third quarter was US$ 10,262 million, down 5 percent compared to the second
quarter (US$ 10,781 million on June 30, 2003) primarily due to divestments of
the Building Systems business in several countries.
Total revenues in the core divisions in the third quarter rose 13 percent to US$
4,315 million compared to the same quarter a year ago (up 3 percent in local
currencies). Group revenues were 7 percent higher at US$ 4,798 million (down 4
percent in local currencies). In Non-core activities, revenues were 33 percent
lower, again reflecting selective bidding in the Building Systems business as
well as Building System disposals in several countries.
EBIT in the core divisions amounted to US$ 294 million, an increase of 24
percent compared to US$ 238 million in the same period last year. Group EBIT was
US$ 262 million, up US$ 348 million from a loss of US$ 86 million in the third
quarter of 2002. Included in Group EBIT is a US$ 95 million gain on the
divestment of the Building Systems business in the Nordic countries, of which
US$ 30 million related to asset sales were recorded in Non-core activities, and
US$ 65 million related to sales of shares was recorded in Corporate, improving
the results in those two areas. Restructuring costs in the quarter amounted to
US$ 69 million compared to US$ 51 million in the third quarter of last year.
The Group EBIT margin in the quarter was 5.5 percent.
Finance net* was negative US$ 128 million compared to income of US$ 110 million
in the third quarter of 2002. The higher costs are due primarily to the
mark-to-market treatment of the 2002 convertible bond, which produced a non-cash
expense of US$ 43 million in the quarter, compared to a non-cash gain of US$ 182
million in the third quarter of last year.
Discontinued operations reported a loss of US$ 343 million, compared to a loss
of US$ 141 million in the third quarter of 2002. The negative result comprises:
• A US$ 195 million net loss in the Oil, Gas and Petrochemicals division,
reflecting non-cash provisions in the downstream business of US$ 108 million to
write down its remaining assets in a refinery project in India (as described in
ABB's 2002 annual report and Form 20-F) that was first started in 1996 but has
not yet received the required financing; US$ 30 million to cover cost overruns
on a petrochemicals project in the Netherlands; and, following a recent
out-of-court settlement, the non-cash write-down of US$ 35 million in
receivables related to a project dating from 1997.
• A US$ 24 million charge on the anticipated sale of ABB Export Bank,
which is subject to the approval of the Swiss Banking Commission.
• A total of US$ 122 million in non-cash expenses related to asbestos,
mainly comprising a US$ 67 million expense on the mark-to-market increase in the
value of some 30 million ABB Ltd shares committed to cover part of the company's
asbestos liabilities; and a provision of US$ 41 million to cover the net present
value of the first two US$ 25 million asbestos payments, previously considered
contingent. The payments for 2008 and 2009 remain contingent. There is no change
to the plan of reorganization nor to the company's total asbestos liability.
ABB's net loss for the third quarter amounted to US$ 279 million, compared to a
net loss of US$ 148 million for the same period in 2002.
Cash flow
Net cash from operations for the group improved by US$ 347 million to US$ 121
million in the third quarter compared to cash used in the year-earlier period of
US$ 226 million. The two core divisions contributed a combined cash flow in the
quarter of US$ 307 million, up 18 percent from US$ 261 million in the same
quarter in 2002. Cash outflows of US$ 200 million in the Oil, Gas and
Petrochemicals division were partly offset by positive cash effects of US$ 100
million recorded in Corporate and other, including asbestos-related cash
payments of US$ 56 million. In addition, US$ 86 million was used in Non-core
activities, mainly in the Building Systems business.
Cost reduction
ABB achieved savings of about US$ 190 million in the third quarter (US$ 420
million for the first nine months of the year) from its business improvement
program, called Step Change. Introduced in late 2002, the goals of the program
are to increase the competitiveness of ABB's core businesses, reduce overhead
costs and streamline operations by approximately US$ 900 million (revised from
US$ 800 million) on an annual basis by 2005. The Step Change program is expected
to be completed by mid-2004.
Major cost-saving projects implemented in the third quarter include an IT
outsourcing agreement with IBM, factory consolidation in Germany, Italy and the
U.S., as well as supply chain management improvements in a number of countries.
As a result of the Step Change program, the company reduced 1,800 jobs in the
quarter for a total of 5,600 Step Change-related job reductions so far this
year.
As of September 30, 2003, ABB employed 119,900 people, compared to 139,100 at
the end of 2002.
Divestments
ABB continued its program of divesting non-core businesses and other assets and
using the proceeds to pay down debt. The company received cash proceeds of US$
185 million in the third quarter for its Nordic Building Systems business
(primarily Sweden, Norway, Denmark and Finland).
The company also recorded a charge of US$ 24 million under discontinued
operations for the anticipated sale of its ABB Export Bank, which is subject to
the approval of the Swiss Banking Commission.
So far this year, disposals of businesses and leasing and other financial
portfolios have generated total cash proceeds of about US$ 860 million. With the
announced preliminary agreement to sell parts of the Oil, Gas and Petrochemicals
division and other remaining divestment assets, ABB is on track to achieve its
target of US$ 2 billion in divestment proceeds.
Balance sheet and debt
Cash and marketable securities at the end of September amounted to US$ 4,263
million, up from US$ 4,098 million at the end of the previous quarter. Total
debt (short-term and long-term borrowings) amounted to US$ 8,346 million,
compared to US$ 8,185 million three months earlier. Total debt includes about
CHF 1 billion raised through a seven-year, 3.5-percent convertible bond that ABB
launched at the end of August, and about US$ 100 million from application of
Financial Accounting Standards Board Interpretation No. 46 (FIN 46).
Some US$ 1.1 billion of total debt matures before the end of this year,
comprising aggregate borrowings of approximately US$ 750 million under the
revolving credit facility negotiated in December 2002, which expires in December
of this year (with a 364-day term-out option), and US$ 365 million in maturing
bonds.
Stockholders' equity decreased to US$ 1,019 million from US$ 1,277 million at
the end of June 2003.
Asbestos
On July 31, 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, marking further progress towards a settlement of the asbestos
issue. 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 on October 7 and a hearing date has been set for December
16, 2003. ABB remains confident that the plan will be approved.
Group outlook
The company confirms its revenue, EBIT and gearing (total debt divided by total
debt plus stockholders' equity) targets for 2005. 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 and
the company intends to reduce total debt to about US$ 4 billion and gearing to
approximately 50 percent, also unchanged.
ABB confirms its 2003 EBIT margin targets of 4 percent in U.S. dollars for the
Group, 7.0 percent for the Power Technologies division and 7.1 percent for the
Automation Technologies division.
ABB is adjusting its 2003 local currency revenue growth target to reflect
ongoing market weakness. The Power Technologies division now forecasts revenue
growth in local currencies of 3.0 percent for 2003, compared to its original
target of 5.3 percent. The Automation Technologies division has revised its
revenue growth target in local currencies to 2.0 percent from 3.0 percent.
Revenue and margin targets exclude major acquisitions and divestitures.
In the absence of cash proceeds from the divestment of its Oil, Gas and
Petrochemicals business this year, and following the application of FIN 46,
which adds approximately US$ 100 million to consolidated debt, the total debt
target for 2003 is now US$ 7.3 billion, compared to the previous target of US$
6.5 billion. The new target does not include the issuance of a bond that is part
of the program announced today to strengthen ABB's capital structure. The
gearing target for 2003 remains unchanged at 70 percent.
Divisional performance Q3 2003
Power Technologies division
US$ in millions July-Sept. July-Sept.* Change
(except where indicated) 2003 2002
Orders 1,830 1,509 21%
Revenues 1,873 1,739 8%
EBIT 113 97 16%
EBIT margin 6.0% 5.6%
Restructuring costs (included in above EBIT figure) -20 -12
* Restated
The Power Technologies division reported a strong increase in orders received in
the third quarter, led by continued double-digit growth in China, especially in
the product businesses, and in the Middle East, where a number of large projects
were booked. Orders were also higher in Europe. Orders from North America
remained at a low level, although there are signs that the bottom of the demand
curve has been reached in that market.
Orders increased 21 percent to US$ 1,830 million (up 13 percent in local
currencies) in the third quarter. Orders were higher in all business areas.
Orders grew at a double-digit pace in both U.S. dollars and local currencies in
Utility Automation Systems, Power Systems and Power Transformers.
Significant orders in the quarter included a US$ 54-million order from
Bombardier Transportation for traction transformers used in electrical
locomotives, two contracts with a total value of US$ 60 million to supply
distribution substations to the United Arab Emirates, and large utility
automation orders from Mexico and Germany with a total value of US$ 60 million.
The need for network upgrades in the U.S., reflected in the massive power outage
in August, is expected to trigger major investments once the necessary
regulatory and political decisions have been taken. Some smaller orders were
already received in the quarter, including a consulting contract for a utility
to assess its power grid and a US$ 12 million power transmission order from
Pacific Gas and Electric Company.
Revenues in the quarter were 8 percent higher at US$ 1,873 million (1 percent
lower in local currencies). Revenues were higher in High-Voltage Technology,
Medium-Voltage Technology and Power Transformers, and flat to slightly lower in
Power Systems and Utility Automation Systems.
Third-quarter EBIT increased by 16 percent to US$ 113 million despite higher
restructuring charges compared to the year-earlier period. The division
continued to benefit from product and site rationalization programs as well as
from Step Change improvements. The EBIT margin before restructuring increased
from 6.3 percent in the third quarter of last year to 7.1 percent in the third
quarter of 2003.
Automation Technologies division
US$ in millions July-Sept. July-Sept.* Change
(except where indicated) 2003 2002
Orders 2,361 2,036 16%
Revenues 2,442 2,064 18%
EBIT 181 141 28%
EBIT margin 7.4% 6.8%
Restructuring costs (included in above EBIT figure) -40 -10
* Restated
The Automation Technologies division also reported a significant improvement in
orders in the quarter, even though the overall market remained flat. Order
growth continued strongly in China and India, at more than 40 percent, while the
rest of Asia showed steady growth at more modest levels. Orders were stable in
Europe. Although we have seen some signs of economic recovery in the U.S., the
industrial sector has not yet seen an increase in capital expenditures. The
product and service business developed strongly in the quarter, while most of
the larger-project systems business remained at lower levels.
Total orders received for the division were up 16 percent (6 percent in local
currencies) to US$ 2,361 million compared to the same quarter last year. Orders
were higher in all business areas. Important orders in the quarter included a
US$ 30-million telecommunications contract for the Sakhalin II oil field
development in Russia.
Revenues rose 18 percent (7 percent in local currencies) to US$ 2,442 million
compared to the third quarter of last year, driven mainly by growth in the
product and service businesses. Revenues were higher in all business areas.
Earnings before interest and taxes (EBIT) improved by 28 percent to US$ 181
million, reflecting continuing progress in improving productivity and reducing
costs, the ongoing growth in the higher-margin service business, and more
selective bidding. The EBIT margin before restructuring increased from 7.3
percent in the third quarter of last year to 9.0 percent in the third quarter of
2003.
Non-core activities
US$ in millions July-Sept.2003 July-Sept.**2002
EBIT 47 -191
Insurance 59 -2
Equity Ventures -3 -1
Remaining Structured Finance 37 -101
Building Systems 18 -47
New Ventures -37 -18
Other Non-core activities* -27 -22
Restructuring costs (included in above EBIT figure) -9 -7
* Comprises mainly former Group Processes division.
** Restated
Non-core activities recorded EBIT of US$ 47 million in the third quarter
compared to a loss of US$ 191 million in the same period of 2002.
EBIT for the insurance business increased, through higher insurance results and
improved investment income. The result in the third quarter of 2002 was also
affected by weak investment income.
Remaining Structured Finance reported EBIT of US$ 37 million for the third
quarter of 2003 compared to a loss of US$ 101 million in the comparable period
last year. The figure for the third quarter of 2002 has been restated to reflect
a US$ 90 million reduction in income from the Swedish Export Credit Corporation
(SEK). ABB sold its 35-percent stake in SEK in the second quarter of this year.
In Building Systems, the inclusion of US$ 30 million from the gain on the sale
of the Nordic part of the business (reflecting sale of assets - the remaining
US$ 65 million of the gain is related to the sale of shares and recorded in
Corporate) was the main factor behind the positive EBIT in this business in the
third quarter. While the underlying market conditions for the remaining
businesses - mainly in Germany - continue to be weak, their profitability
improved in the quarter.
EBIT in the New Ventures business included a write-down of a wind energy project
in Germany and a loss related to the closure of a microturbine venture (equity
investment). These represent further steps taken by the company to divest or
close down most of its New Ventures business.
Corporate
US$ in millions July-Sept. July-Sept.**
2003 2002
EBIT -79 -133
Headquarters/stewardship -48 -143
Research and development -27 -22
Other* -4 32
Restructuring costs (included in above EBIT figure) 0 -22
* Includes consolidation, real estate and Treasury Services.
** Restated
Total corporate costs decreased to US$ 79 million from US$ 133 million in the
same quarter last year. Headquarters and stewardship costs were lower primarily
because of US$ 65 million of the capital gain related to the divestment of the
Nordic Building Systems business. This gain was recorded in Corporate because
certain shares of the Nordic business were held by Corporate entities (gains
from asset sales were recorded in Non-core activities).
Research and development costs were slightly higher in the quarter but remain in
line with full-year plans to reduce corporate R&D expenses. Other costs were
higher, reflecting the shift in Treasury Services away from proprietary trading,
which generated earnings in the quarter last year, to internal transactions.
Other income and expenses (included in EBIT)
US$ in millions July-Sept. July-Sept.*
2003 2002
Restructuring charges -69 -51
Capital gains 142 13
Write-downs of assets -38 -28
Income from equity-accounted companies, licenses and other -3 -69
* Restated
The increase in capital gains is mainly the result of the sale of the Nordic
part of the Building Systems business in the quarter. The improvement in income
from equity-accounted companies reflects losses reported in the third quarter of
2002 by the Swedish Export Credit Corporation, which ABB divested earlier this
year.
Discontinued operations (not included in EBIT)
US$ in millions July-Sept. July-Sept.*
2003 2002
Net income (loss) -343 -141
Oil, Gas and Petrochemicals -195 -38
Asbestos -122 --
Other -26 -103
* Restated
The item Other in the third quarter of 2003 includes a US$ 24 million charge on
the anticipated sale of ABB Export Bank, while Other in the same period in 2002
includes a US$ 96-million loss recorded on Structured Finance, including a
one-time charge of US$ 113 million on the anticipated disposal of most of the
business. See page 4 for a further discussion of the results from discontinued
operations.
Oil, Gas and Petrochemicals
US$ in millions July-Sept. July-Sept.* Change
(except where indicated) 2003 2002
Orders 689 351 96%
Revenues 818 911 -10%
* Restated
Orders almost doubled in the Oil, Gas and Petrochemicals business from a low
level in the third quarter of 2002. Several large orders were booked in both the
upstream (exploration and production) and downstream (processing and refining)
businesses. Overall, demand is steady in the upstream business but remains weak
downstream.
Revenues were 10 percent lower (down 12 percent in local currencies), reflecting
both lower order intake in earlier quarters as well as the strategic shift away
from lump-sum contracts with large customer advances.
Refer to page 4 for more information on the third-quarter result for the Oil,
Gas and Petrochemicals division.
ABB key figures Q3 and first nine months 2003 (US$ millions)
July-Sept. July-Sept. 20021 % change
2003 Nominal Local
Orders Group 4,413 4,240 4% -5%
Power Technologies 1,830 1,509 21% 13%
Automation Technologies 2,361 2,036 16% 6%
Non-core activities 430 1,061
Corporate (208) (366)
Revenues Group 4,798 4,491 7% -4%
Power Technologies 1,873 1,739 8% -1%
Automation Technologies 2,442 2,064 18% 7%
Non-core activities 707 1,049
Corporate (224) (361)
EBIT* Group 262 (86) n/a N/a
Power Technologies 113 97 16% 12%
Automation Technologies 181 141 28% 21%
Non-core activities 47 (191)
Corporate (79) (133)
EBIT margin Group 5.5% N/a
Power Technologies 6.0% 5.6%
Automation Technologies 7.4% 6.8%
Non-core activities 6.6% N/a
Corporate n/a N/a
Net income/loss -279 -148
Jan.-Sept. 2003 Jan.-Sept. 20021 % change
Nominal Local
Orders Group 14,411 13,587 6% -6%
Power Technologies 5,798 5,243 11% 2%
Automation Technologies 7,328 6,522 12% -1%
Non-core activities 2,361 3,044
Corporate (1,076) (1,222)
Revenues Group 14,344 12,957 11% -3%
Power Technologies 5,591 5,041 11% 1%
Automation Technologies 7,135 6,096 17% 3%
Non-core activities 2,691 2,920
Corporate (1,073) (1,100)
EBIT* Group 520 330 58% 36%
Power Technologies 388 337 15% 9%
Automation Technologies 541 411 32% 17%
Non-core activities (55) (145)
Corporate (354) (273)
EBIT margin Group 3.6% 2.5%
Power Technologies 6.9% 6.7%
Automation Technologies 7.6% 6.7%
Non-core activities n/a N/a
Corporate n/a N/a
Net income/loss -379 45
* Earnings before interest and taxes. See Summary Financial Information for more
information.
1 Restated to reflect the move of businesses to discontinued operations, a
restatement filed by the Swedish Export Credit Corp., and the impact of the
equity conversion option (bifurcation) on the convertible bond issued in May
2002.
More information
The 2003 Q3 results press release and presentation slides are available from
October 28, 2003 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 +44 20 7107 0611.
From Sweden, dial +46 8 5069 2105, 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: +41 91 612 4330
(Europe) or +1 412 858 1440 (U.S.). The code is 119, followed by the # key.
A conference call for analysts and investors is scheduled to begin at 1500 CET.
Callers should dial +41 91 610 56 00 (Europe), +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: +41 91 612 4330
(Europe) or +1 412 858 1440 (U.S.). The code is 091 followed by the # key.
Reporting dates in 2004 are February 19 for the full-year 2003 results, as well
as quarterly reports on April 29, July 29 and October 28.
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economic conditions affecting our business. These forward-looking statements are
subject to risks, uncertainties and assumptions, including among other things,
the following: (i) the difficulty of forecasting future market and economic
conditions; (ii) the effects of, and changes in, laws, regulations, governmental
policies, taxation, or accounting standards and practices; (iii) our ability to
dispose of certain of our non-core businesses on terms and conditions acceptable
to us; (iv) our ability to further reduce our indebtedness as planned; (v) the
resolution of asbestos claims on terms and conditions satisfactory to us; (vi)
the effects of competition in the product markets and geographic areas in which
we operate; (vii) our ability to anticipate and react to technological change
and evolving industry standards in the markets we operate; (viii) the timely
development of new products, technologies, and services that are useful for our
customers; (ix) unanticipated cyclical downturns in some of the industries that
we serve; (x) the risks inherent in large, long-term projects served by parts of
our business; (xi) the difficulties encountered in operating in emerging
markets; and (xii) other factors described in documents that we may furnish from
time to time with the U.S. Securities and Exchange Commission, including our
Annual Reports on Form 20-F. Although we believe that the expectations reflected
in any such forward-looking statement are based on reasonable assumptions, we
can give no assurance that they will be achieved. We undertake no obligation to
update publicly or revise any forward-looking statements because of new
information, future events or otherwise.
Stabilization/FSA
For more information please contact:
Media Relations, Zurich Investor Relations ABB Ltd,
Thomas Schmidt, Wolfram Eberhardt Switzerland: Tel. + 41 43 317 3804 Affolternstrasse 54,
Tel: +41 43 317 6492, +41 43 317 6512 Sweden: Tel. + 46 21 325 719 CH-8050 Zurich,
Fax: +41 43 317 7958 USA: Tel: +1 203 750 7743 Switzerland
media.relations@ch.abb.com investor.relations@ch.abb.com Tel. +41 43 317 7111
www.abb.com
--------------------------
* Finance net is the difference between interest and dividend income and
interest and other finance expenses.
This information is provided by RNS
The company news service from the London Stock Exchange
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