Final Results

ABB Ltd
19 February 2004

Core divisions post strong results

Significant order, EBIT and cash flow growth in Q4

Core divisions exceed EBIT margin targets for full year

Further write-offs in Discontinued operations lead to Q4, full-year net loss

2003 Q4 and full-year key figures


(US$ in millions)                               Q4 03     Q4 021     Change       2003      20021     Change

Orders          Group                           4,674      4,288         9%     18,703     17,352         8%
                Power Technologies              1,960      1,569        25%      7,708      6,753        14%
                Automation Technologies         2,637      2,169        22%      9,961      8,680        15%
Revenues        Group                           5,081      5,008         1%     18,795     17,466         8%
                Power Technologies              2,184      2,010         9%      7,680      6,963        10%
                Automation Technologies         2,774      2,379        17%      9,897      8,464        17%
EBIT2           Group                             187          1         --        656        346        90%
                Power Technologies                170         93        83%        563        433        30%
                Automation Technologies           225        107       110%        773        517        50%
                Non-core activities               -62        -78                  -181       -181
                Corporate                        -146       -121                  -499       -423
EBIT margin     Group                            3.7%         0%                  3.5%       2.0%
                Power Technologies               7.8%       4.6%                  7.3%       6.2%
                Automation Technologies          8.1%       4.5%                  7.8%       6.1%
Loss from discontinued operations                -441       -729         --       -853       -858         --
Net loss                                         -387       -828         --       -767       -783         --
Basic loss per share                            -0.28      -0.74         --      -0.63      -0.70         --

1 Adjusted to reflect the move of activities to Discontinued operations in 2003

2  Earnings before interest and taxes





Zurich, Switzerland, February 19, 2004 - ABB's core divisions, Power
Technologies and Automation Technologies, improved their performance in the
fourth quarter of 2003 and the full year, delivering significantly higher
earnings before interest and taxes (EBIT) and cash flow.



Mainly non-cash losses from Discontinued operations - primarily in the
downstream oil and gas business and on the announced sale of the reinsurance
business - were the biggest factors in a net loss of $387 million for the fourth
quarter. The net loss for the full year was $767 million.



'The core divisions turned in another strong performance in mixed markets,' said
Jurgen Dormann, ABB chairman and CEO. 'They almost doubled EBIT in the quarter
as cost reductions continued to pay off, and lifted operating cash flow by more
than a third. For the full year, the core divisions generated almost $1.5
billion in cash. Those are significant achievements.'



Orders in the core divisions rose strongly in the fourth quarter on continued
double-digit growth in Asia, even excluding positive foreign exchange effects of
more than ten percentage points. Adjusted for foreign exchange effects, total
core division revenues for the quarter were flat.



'Our strengthened capital base gives us the platform we need to execute our
strategy of profitable growth with more competitive costs,' Dormann said. '
Driving operational improvements further and finalizing the divestment program
will remain our priorities in 2004.'



Q4 and full-year 2003 highlights

Orders: The core divisions reported a solid increase in orders in the fourth
quarter in both nominal U.S. dollar terms and in local currencies. Orders in
local currencies were up 12 percent in the Power Technologies division and were
8 percent higher in Automation Technologies. The improvement was driven mainly
by an increase in large orders (larger than $15 million) and continued strong
growth in Asia. Full-year orders were 4 percent higher in local currencies for
the Power Technologies division and up 2 percent for Automation Technologies.



Group orders were up 9 percent in the quarter compared to the same period last
year (down 5 percent in local currencies), and up 8 percent for the year (down 5
percent in local currencies). Excluding the Building Systems businesses which
the company is divesting, group orders for the quarter grew 6 percent in local
currencies in the fourth quarter and were flat for the full year compared to
2002.



EBIT: The core divisions almost doubled their combined EBIT in the quarter, to
$395 million from $200 million in the year-earlier period. This was primarily
the result of ongoing operational improvements, as well as growth in the
higher-margin service business. Core division EBIT for the full year was up 41
percent to $1,336 million. Group EBIT for 2003 was $656 million, a 90-percent
improvement over 2002.



Cost reduction: ABB's Step change program produced savings of $235 million in
the fourth quarter of 2003 and $655 million for the full year, both ahead of
target.



Cash flow: The two core divisions generated a combined cash flow from operations
in the fourth quarter of $969 million, up 34 percent from the same period in
2002. For the full year, the core divisions increased cash flow from operations
to $1,464 million from $859 million in 2002. Net cash used in operations for the
group was $161 million for 2003 compared to cash provided by operations of $19
million for 2002.



R&D and order-related development: ABB invested $613 million in R&D and $317
million in order-related development for a total of $930 million in 2003,
representing about 5 percent of revenues compared to a total of $795 million in
2002, or 4.5 percent of revenues.



Capital structure: ABB strengthened its capital structure in the fourth quarter
of 2003 with a CHF 3.1-billion (approximately $2.5-billion) rights issue, a EUR
650-million straight bond, and a $1-billion unsecured bank facility which
remains undrawn. The company also repaid and cancelled its previous $1.5-billion
secured bank facility. Shareholders' equity increased to $3,026 million at the
end of the year from $1,019 million at the end of September 2003.



2003 targets

Both core divisions surpassed their EBIT margin targets. The Power Technologies
(PT) division reported an EBIT margin of 7.3 percent (target: 7.0 percent) while
the Automation Technologies (AT) division reported a margin of 7.8 percent
(target: 7.1 percent).



The EBIT margin target for the ABB Group was 4 percent for 2003, excluding the
impact from major acquisitions and divestments. Including that impact, ABB
achieved an EBIT margin in 2003 of 3.7 percent. The shortfall was mainly the
result of additional restructuring charges taken to prepare businesses in
Non-core activities for disposal.



For revenues, the PT division reported flat growth in local currencies (target:
3 percent) for 2003. On a comparable scope of business (including a number of
divestitures and business closures), the PT division increased 2003 revenues in
local currencies by 3 percent. The AT division increased revenues in local
currencies by 3 percent (target: 2 percent) for the full year.



Excluding the EUR 650 million raised through a bond launched in November (not
included in the target), ABB achieved the debt target it set in October of $7.3
billion. Gearing (defined as total debt divided by total debt plus equity)
amounted to 70 percent at the end of 2003, also on target.



Summary of fourth quarter 2003 results

Orders received for the core divisions in the fourth quarter of 2003 grew more
than 20 percent in U.S. dollar terms and were also higher on a local currency
basis - up 12 percent in Power Technologies and 8 percent in Automation
Technologies -  reflecting an improvement in the overall investment climate.
Regionally, the increase was driven by continued double-digit growth in Asia,
with additional growth in Europe. Orders were lower in the Americas, the Middle
East and Africa. Large orders in the core divisions rose by almost $500 million,
led by Europe and Asia, compared to a very low volume of large orders for the
same quarter in 2002. Base orders (less than $15 million) were flat to slightly
lower in local currency terms in the core divisions.



Group orders amounted to $4,674 million, up 9 percent compared to the same
period last year ($4,288 million) and down 5 percent in local currencies.



The order backlog for the core divisions at the end of the fourth quarter of
$9,905 million remained at about the same level as at the end of the third
quarter 2003. In local currencies, the core division order backlog was slightly
lower. The order backlog for the group at the end of the fourth quarter was
$10,043 million, 2 percent lower than the end of the third quarter of 2003 (down
7 percent in local currencies), primarily due to divestments of Building Systems
businesses, part of Non-core activities.



Revenues rose 9 percent for the Power Technologies division and 17 percent for
Automation Technologies in U.S. dollar terms. In local currencies, revenues in
the core divisions were flat overall. Local currency revenues were higher in the
product and service businesses and lower from large projects. Core division
revenues were significantly higher in Asia, slightly higher in the Middle East,
Africa and Europe, and lower in the Americas. Group revenues of $5,081 million
were flat in U.S. dollar terms and down 11 percent in local currencies,
reflecting mainly the divestment of most of the Building Systems business during
the year.



EBIT in the core divisions was $395 million, almost doubled from $200 million in
the same period in 2002. After losses in Non-core activities of $62 million and
Corporate costs of $146 million in the fourth quarter, group EBIT was $187
million ($1 million in the fourth quarter of 2002).



A significant contributor to ABB's improved EBIT was the Step change cost
reduction program. Comprising more than 1,400 savings initiatives, 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. The program is expected to be complete by the middle of 2004. At the
end of 2003, 63 percent of the initiatives had been completed on or ahead of
schedule.



Step change yielded savings of $235 million in the fourth quarter of 2003 and
$655 million for the full year. Restructuring costs under the program amounted
to $72 million in the fourth quarter. For the full year, Step change
restructuring costs amounted to $234 million, compared to $300 million forecast
at the beginning of 2003. There were slightly more than 1,400 Step
change-related job reductions in the fourth quarter for a total of about 7,100
Step change-related job reductions for the full year. Total restructuring costs
in the quarter amounted to $142 million, comprising the Step change program and
restructuring related mainly to preparing businesses in Non-core activities for
disposal.



As of December 31, 2003, ABB employed 116,500 people, compared to 139,100 at the
end of 2002. During the year, ABB divested businesses employing about 13,000
people, most of whom were employed in the divested Building Systems businesses
(about 11,000 employees).



Included in group EBIT is Other net expense of $128 million in the fourth
quarter (for further details, please refer to page 10 of this release).



The group EBIT margin in the quarter was 3.7 percent.



Finance net(1) was negative $77 million compared to negative $120 million in the
fourth quarter of 2002. The difference reflects the non-recurrence of financial
losses in the fourth quarter of 2002, which more than compensated for lower
interest and dividend income, higher interest costs and a $5-million expense
booked in other finance expense for the mark-to-market effect of the equity
conversion option contained in the 2002 convertible bond, compared to a $6
million gain in the same quarter of 2002.



The net loss in Discontinued operations amounted to $441 million, compared to a
net loss of $729 million in the fourth quarter of 2002. Major items in the
result include a $245-million net loss in the Oil, Gas and Petrochemicals
business and losses (including operating results) on the discontinuation or
anticipated sale of the reinsurance business ($162-million loss after tax), the
wind energy venture ($22-million loss) and the cable business in Germany
($22-million loss). (For more details on Discontinued operations, please refer
to pages 10 and 11 of this release.)



ABB's net loss for the fourth quarter amounted to $387 million, compared to a
net loss of $828 million for the same period in 2002.



Balance sheet and debt

Cash and marketable securities at the end of December 2003 amounted to $5,142
million (excluding Discontinued operations), up from $2,573 million at the end
of the previous quarter. The change reflects mainly the impact of ABB's rights
issue in late 2003 that generated some CHF 3.1 billion (approximately $2.5
billion) in cash.



As a result of the announced sale of the reinsurance business, approximately
$1.8 billion in cash and marketable securities have been moved to assets held
for sale in the balance sheet.



At the end of December 2003, total debt (defined as total short and long-term
borrowings) amounted to $7.9 billion, compared to $8.3 billion three months
earlier. Excluding the bond issued in November, total debt at December 31, 2003
amounted to about $7.1 billion, within the company's total debt target for 2003
of $7.3 billion.



Some $7.1 billion of the $7.9 billion in total debt is in the form of bonds, of
which $677 million is due for repayment in the first quarter of 2004. For the
full year 2004, bonds of $1.3 billion are due for repayment.



Stockholders' equity at December 31, 2003 amounted to $3,026 million compared to
$1,019 million at the end of September 2003.



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





Cash flow

The two core divisions contributed a combined cash flow from operations in the
quarter of $969 million, up 34 percent from $722 million in the same quarter of
2002. Net cash from operations for the group more than doubled to $671 million
in the fourth quarter compared to $254 million for the same period a year
earlier.



Non-core activities generated cash flow from operations of $55 million in the
quarter, largely due to higher dividends received from Equity Ventures and
increased collections from customers in the Building Systems business.



Cash outflow from Corporate amounted to $368 million in the fourth quarter and
included cash payments to the Settlement Trust for ABB's U.S. subsidiary
Combustion Engineering (CE) of $56 million ($369 million for the full year).
Total asbestos cash outflows including fees and insurance collections amounted
to $55 million in the quarter and $388 million for the year. The Oil, Gas and
Petrochemicals business generated a small positive cash flow of $16 million.



Divestments

ABB continued its program of divesting non-core businesses and other assets and
using the proceeds to pay down debt. In the fourth quarter, the company
announced the sale of its reinsurance business for cash proceeds of about $425
million to be received when the deal is closed, which is expected to be in the
second quarter of 2004. As a result, a loss of $162 million was reported in the
fourth quarter, including a loss of $153 million on the announced sale
(including an interest allocation of $15 million), a positive EBIT of $18
million, and a tax charge of $27 million.



The company continued to divest its Building Systems business and finalized the
sale of units in Belgium, the Netherlands, Austria and the U.K., among other
countries, recording a loss on the divestments of $27 million (recorded in
Non-core activities). ABB also sold its wind energy venture, part of its New
Ventures business in Non-core activities.



The sale of the ABB Export Bank for about $50 million, announced in October, was
finalized in the fourth quarter.



A preliminary agreement to sell ABB's upstream oil and gas business was
announced in October 2003. In January 2004, the final sales agreement was signed
with an initial purchase price of $925 million and a potential deferred
consideration of an additional amount of up to $50 million. The transaction is
expected to be closed by mid-2004, subject to the customary regulatory approvals
and closing conditions, as well as the satisfactory completion and disposition
of compliance matters under review.



For the full year 2003, disposals of businesses and leasing and other financial
portfolios have generated total cash proceeds of about $1.1 billion. Including
the announced sale of the upstream oil and gas business and the reinsurance
business, ABB is on track to achieve more than $2 billion in divestment
proceeds.





Asbestos

On July 31, a U.S. district court approved a pre-packaged Chapter 11 protection
plan filed earlier in the year by ABB's U.S. subsidiary, Combustion Engineering,
marking further progress towards a settlement of the asbestos issue. Following
the court's approval, an appeals period began before the U.S. 3rd Circuit Court
of Appeals. All documentation was received by the court on October 7. A hearing
date was set for February 4, 2004 but was postponed. The company is currently
waiting for a new date and remains confident that the plan will be approved.



Group outlook

Based on current estimates, the company expects demand in most markets to
continue to grow in 2004 compared to the year before, especially in the second
half of the year. Economic growth in Asia is expected to remain robust, and a
recovery is forecast to begin in Europe and the U.S. later in the year.

Management believes that this market development, combined with continued
planned cost reductions and divestments, will lead to a further improvement in
profitability in 2004 compared to 2003.



In addition, the company confirms its revenue, EBIT and gearing (defined as
total debt divided by total debt plus equity) targets for 2005. From 2002 to
2005, ABB is targeting compound average annual revenue growth of 4 percent in
local currencies, including 5.3 percent growth in the Power Technologies
division and 3.3 percent growth in the Automation Technologies division.



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 $4 billion and gearing to
approximately 50 percent.



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



Dividend recommendation

Taking into consideration the net loss reported for the year, the board of
directors proposes that no dividend be paid for 2003.



Reclassifications

The company adjusted its 2003 and 2002 income statements and balance sheets to
reflect the reclassification of various businesses, including its reinsurance
business whose sale was announced in December 2003, to Discontinued operations.
The reclassification of the reinsurance business reduces the company's 2003
revenues by $782 million and EBIT by $103 million. Also, reinsurance assets
(including cash and marketable securities) and liabilities with a value of
approximately $3.3 billion and $2.8 billion, respectively, have been moved into
assets and liabilities held for sale in the balance sheet. Income statements and
balance sheets reflecting these and other reclassifications are provided for the
first three quarters of 2003 in the appendix attached to this release.



In addition, substation automation activities in the Automation Technologies
division have been transferred to the Power Technologies division, effective
January 1, 2004. The impact on full-year revenues for the Automation
Technologies division will be a reduction of about $200 million. Due to the
elimination of internal transactions, the corresponding revenue impact for the
Power Technologies division is expected to be about $80 million. This change
will be reflected in the divisional reporting as of the first quarter of 2004.





Divisional performance Q4 2003



Power Technologies
$ in millions (except where indicated)                   Q4 2003              Q4 20021             Change
Orders                                                     1,960                 1,569                25%
Revenues                                                   2,184                 2,010                 9%
EBIT                                                         170                    93                83%
EBIT margin                                                 7.8%                  4.6%
Restructuring costs (included in EBIT)                       -15                   -18

1 Adjusted to reflect the move of activities to Discontinued operations in 2003



Orders received in the fourth quarter rose 25 percent (12 percent in local
currencies) to $1,960 million compared to the year-earlier quarter. The
improvement was fueled mainly by growth in China and demand for large projects
in the Middle East. Order growth was strong in Russia and modest in the rest of
Europe. Demand in North America remained weak while political and financial
uncertainties continued to depress markets in Latin America. Last summer's power
outages in the U.S. and Europe have raised awareness of the need to upgrade
transmission systems in many countries, and investments are expected once the
necessary regulatory and political decisions have been taken.



Orders grew in U.S. dollar terms across all business areas. Orders were more
than 60 percent higher in Power Systems versus the fourth quarter in 2002.
Orders were more than 30 percent higher in High-Voltage Technology, particularly
on higher demand in Europe.



Significant orders in the quarter in Power Systems business area included a
$26-million order to improve the power supply in Sri Lanka, a $30-million order
for power equipment in Algeria and a $24-million transmission line order in
Venezuela.



Revenues in the fourth quarter of 2003 were up 9 percent at $2,184 million (3
percent lower in local currencies) than in the same quarter in 2002. Expressed
in local currencies, revenues were higher in the product business areas
High-Voltage Technology and Medium-Voltage Technology (reflecting higher orders
in earlier quarters); lower in Power Transformers (due to the weak U.S. market)
and Power Systems (following low orders in the second half of 2002); and flat in
Utility Automation and Distribution Transformers. Adjusted for a change in scope
of business, mainly two divestments in the U.S. and Poland, revenues in local
currencies were flat in the quarter.



Fourth-quarter EBIT increased by 83 percent to $170 million. The increase was
mainly driven by continued operational improvements, especially from product and
site rationalization programs and savings from the Step change program. The EBIT
margin before restructuring increased to 8.5 percent in the fourth quarter from
5.5 percent in the fourth quarter of 2002.



The higher earnings and net working capital improvements lifted cash flow from
operations by 23 percent to $433 million compared to the same quarter in 2002.



Effective January 1 2004, the division merged its Power Transformers and
Distribution Transformers business areas to accelerate gains in efficiency and
productivity. The new business area, called Transformers, is the world's largest
transformer manufacturer, with 56 factories in 26 countries. The new business
area structure will be reported in the divisional results starting with the
first quarter of 2004.



Automation Technologies
$ in millions (except where indicated)                   Q4 2003              Q4 20021             Change
Orders                                                     2,637                 2,169                22%
Revenues                                                   2,774                 2,379                17%
EBIT                                                         225                   107               110%
EBIT margin                                                 8.1%                  4.5%
Restructuring costs (included in EBIT)                       -58                   -85

1 Adjusted to reflect the move of activities to Discontinued operations in 2003



Orders received in the Automation Technologies division rose 22 percent in the
quarter (8 percent in local currencies) to $2,637 million, driven primarily by
growth in the Petroleum and Chemical business area which won a $173-million
order for turnkey gas compressors for a pipeline project in Poland. Growth in
product and service businesses also contributed to the improvement.



Orders grew strongly in China and India, both at more than 40 percent, led by
increased sales of low-voltage products in China and higher orders in the mining
and metals sector in both countries, including an $18-million power electronics
order for an aluminum smelter in India. Orders were stable in Europe. U.S.
orders were slightly down, but the U.S. industrial sector started to show an
increase in capital expenditures.



Revenues rose 17 percent (3 percent in local currencies) to $2,774 million
compared to the fourth quarter of 2002. The improvement was driven by the
product and service businesses (mainly Low-Voltage Products and Instrumentation,
and Drives, Motors and Power Electronics Systems) in both U.S. dollars and local
currencies. Sales growth in the product businesses came primarily from China and
India.



Earnings before interest and taxes (EBIT) more than doubled to $225 million,
reflecting continuing improvements in operational excellence (such as continuing
to lower the cost base, growth in the higher-margin product and service business
as well as better project execution). EBIT and EBIT margin improved in all
business areas. The division's EBIT margin before restructuring costs of $58
million increased to 10.2 percent in the fourth quarter of 2003 from 8.1 percent
in the same quarter of 2002.



Cash flow from operations for the division rose by 45 percent to $536 million
compared to the fourth quarter in 2002, reflecting both improved earnings and
net working capital management.



Effective January 1 2004, the division merged its six business areas into three
as part of its drive to further simplify and focus the business and to improve
efficiency. The new business areas are:



•        Process Automation, comprising the former business areas Control
Platform and Enterprise Products, Petroleum, Chemical and Consumer Industries,
and Paper, Minerals, Marine and Turbocharging;

•        Automation Products, comprising the former business areas Low-Voltage
Products and Instrumentation and Drives, Motors and Power Electronics;

  • Manufacturing Automation, previously called Robotics, Automotive and
    Manufacturing Industries.



The new business area structure will be reported in the divisional results
starting with the first quarter of 2004.



Non-core activities
$ in millions                                    Revenues                          EBIT
                                             Q4 2003         Q4 20021       Q4 2003          Q4 20021
Equity Ventures                                    8                4             8                 5
Remaining Structured Finance                       9               16            -6                 9
Building Systems                                 269              690           -43               -35
New Ventures                                      13                8             5                 4
Other non-core activities2                       111              237           -26               -61
Total                                            410              955           -62               -78
Restructuring costs (included in EBIT)                                          -44               -17

1 Adjusted to reflect the move of activities to Discontinued operations in 2003

2 Comprises mainly the former Group Processes division



Revenues from Non-core activities were down 57 percent from the 2002 period. The
decrease was mainly the result of ongoing divestments in the Building Systems
businesses during the year. Non-core activities reported an EBIT loss of $62
million in the fourth quarter compared to a loss of $78 million in the same
period of 2002.



Building Systems reported an EBIT loss in the quarter of $43 million compared to
a loss of $35 million in the fourth quarter of 2002, mainly the result of
additional restructuring charges in Germany, together with a loss from the
disposal of the business in the U.K. ($22 million). ABB intends to sell its
remaining Building Systems businesses in Germany and Switzerland in 2004.



Corporate
EBIT ($ in millions)                                                  Q4 2003                     Q4 20021
Headquarters/stewardship                                                  -91                          -32
Research and development                                                  -21                          -24
Other2                                                                    -34                          -65
Total                                                                    -146                         -121
Restructuring costs (included in EBIT)                                    -25                            6

1 Adjusted to reflect the move of activities to Discontinued operations in 2003

2 Includes consolidation effects, real estate and Treasury Services



Headquarters and stewardship costs were higher in the fourth quarter of 2003
compared to the same period in 2002, reflecting changes in a number of one-time
costs. Other costs were lower, reflecting the cessation of proprietary trading
and associated costs in Treasury Services. The improvement also reflects lower
elimination of profits on internal transactions.



Other income and expenses, net (included in EBIT)

$ in millions                                                             Q4 2003               Q4 20021
Restructuring charges                                                        -142                   -114
Capital gains                                                                   6                     31
Write-downs of assets                                                         -17                    -27
Income from equity-accounted companies, licenses and other                     25                     52
Total                                                                        -128                    -58

1 Adjusted to reflect the move of activities to Discontinued operations in 2003



Restructuring charges were higher than the year-earlier period as a result of
streamlining the Building Systems business in Germany and from lease
cancellation costs associated with the closing and divestment of businesses in
the U.K. and Germany. Asset write-downs decreased due to the non-recurrence of
software write-downs in the former Group Processes division in 2002. Income from
equity-accounted companies fell in the fourth quarter as a result of the
divestment of ABB's stake in the Swedish Export Credit Corporation in the second
quarter of 2003.



Discontinued operations (not included in EBIT)
$ in millions                                                             Q4 2003               Q4 20021
Reinsurance business                                                         -162                     45
Asbestos                                                                        8                   -420
Oil, Gas and Petrochemicals business                                         -245                   -147
Other                                                                         -42                   -207
Net loss                                                                     -441                   -729

1 Adjusted to reflect the move of activities to Discontinued operations in 2003



The reinsurance business, whose results were reclassified into Discontinued
operations following the announcement in December 2003 of its sale, reported
4-percent lower revenues in the fourth quarter to $241 million as a result of
lower premium income. A net loss after tax of $162 million was recorded in the
quarter on the discontinuation of the business, including the $153-million loss
on the announced divestment.



Administrative costs associated with the settlement of the asbestos issue were
more than offset by a $14-million gain from the mark-to-market treatment of 30
million ABB shares reserved to cover part of the company's asbestos liabilities.
The figure in the fourth quarter of 2002 reflects the large asbestos provision
taken during the period.



The line Other improved in the fourth quarter compared to the same period in
2002, when the company recorded a $64-million loss on the disposal of the
metering business and a $84-million loss related to the sale of the former
Structured Finance business, both including results from operations. In the
fourth quarter of 2003, Other consists mainly of losses on the divestment of
businesses and includes a $22-million loss on the discontinuation of the wind
energy venture and a $22-million loss on the anticipated sale of a cable
business in Germany.

Oil, Gas and Petrochemicals

$ in millions                                           Q4 2003               Q4 2002             Change
Orders                                                      647                 1,153               -44%
Revenues                                                    752                   982               -23%
Net loss                                                   -245                  -147



Orders were 44 percent lower in the Oil, Gas and Petrochemicals business (48
percent in local currencies) in the fourth quarter of 2003 compared to the same
period in 2002. The decrease was primarily due to a strategic shift from fixed
price engineering, procurement and construction contracts towards lower-risk
reimbursable contracts that de-emphasize construction. The result is a more
selective bidding process aimed at reducing project scope and risks. Therefore,
fewer large orders were taken in the quarter. The upstream business booked more
than $140 million in orders with Norway-based Statoil, including a $54-million
modification and maintenance order for a North Sea oil platform and two frame
agreements totaling more than $60 million.

Revenues were 23 percent lower (down 26 percent in local currencies), reflecting
a lower order backlog in the downstream business. Revenues in the upstream
business were flat compared to the year-earlier quarter.



The net loss from the oil and gas business in the quarter amounted to $245
million, primarily from some $100 million of project losses and asset
write-downs, most of which were related to three downstream projects in the
Netherlands, Italy and Brazil dating from the 1990s and 2000, and an additional
tax charge of more than $120 million related to the reassessment of deferred
taxes.



To support the strategic shift to narrower-scope, lower-risk projects in the
downstream oil and gas business and to prepare these businesses for disposal,
the company initiated a more streamlined management structure in October 2003
and gave the group chief financial officer direct management responsibility for
the businesses until they are divested.



Summary of full-year 2003 results

Orders received for the core divisions in 2003 grew more than 10 percent in U.S.
dollar terms. In local currencies, the Power Technologies division increased
orders 4 percent and the Automation Technologies division by 2 percent. The
improvement was led by double-digit order growth in Asia and higher orders in
the Middle East and Africa. Orders were lower in Europe and the Americas.



Group orders amounted to $18,703 million, up 8 percent compared to 2002 ($17,352
million) and down 5 percent in local currencies. Excluding the effect of the
divestment of most of the Building Systems business, group orders received were
flat for the year.



Large orders (larger than $15 million) accounted for 9 percent of total core
division orders for the full year, up from 6 percent in 2002, mainly on
increases in Europe, Asia and the Middle East and Africa. Large orders were down
in the Americas. Core division base orders (less than $15 million) for the year
grew 12 percent in U.S. dollar terms and were flat in local currencies. Higher
base order intake from Asia and in the service business was offset by lower base
orders in Europe during the weak first half of the year. The disposal during the
year of most of the Building Systems business - part of Non-core activities -
reduced the volume of large orders for the group as a whole.



Revenues saw a double-digit increase in the core divisions for 2003 in U.S.
dollar terms, with Power Technologies up 10 percent and Automation Technologies
17 percent higher. In local currencies, Power Technologies revenues were flat
while Automation Technologies revenues grew 3 percent. Double-digit growth in
revenues was recorded in Asia, the Middle East and Africa in local currencies.
Revenues in local currencies were flat in Europe and lower in the Americas.



Group revenues were 8 percent higher at $18,795 million (down 6 percent in local
currencies). In Non-core activities, revenues were 26 percent lower, again
reflecting the disposal of Building Systems businesses in several countries, as
well as more selective bidding in Building Systems business.



EBIT for 2003 in the core divisions amounted to $1,336 million, an increase of
41 percent compared to $950 million in 2002. Group EBIT was $656 million, up 90
percent from $346 million in 2002.



Included in group EBIT for the full year is other net expense of $189 million.
This consists of restructuring costs of $325 million compared to $259 million in
2002. Other net expense also includes gains of $69 million on the disposal of
businesses, compared to capital gains in the year-earlier period of $113
million. Asset write-downs for the full year amounted to $34 million compared to
$94 million in 2002, while income from equity-accounted companies, licenses and
other items totaled $101 million in 2003 versus $182 million the year before.



The group EBIT margin for the full year was 3.5 percent compared to 2.0 percent
for the full year 2002. Adjusted for major divestments, the group margin was 3.7
percent.



Finance net(2) for the full year was negative $410 million compared to negative
$126 million for the full year 2002. Interest and dividend income fell during
the year on lower market interest rates and as divestments reduced dividends.
Interest expense increased as a result of higher funding costs associated with
the December 2002 credit facility and the repayment of all remaining commercial
paper in 2003 (with its low funding costs). The company recorded an expense of
$84 million on the line Interest and other finance expense to account for the
mark-to-market effect of the equity conversion option contained in the 2002
convertible bond, compared to a gain of $215 million in the same period in the
previous year.



The net loss in Discontinued operations amounted to $853 million in 2003,
compared to a loss of $858 million in 2002. The loss comprises mainly:

•        $496 million in project losses and asset write-downs in the Oil, Gas
and Petrochemicals business;

•        $145 million to cover the company's asbestos liabilities;

•        $97 million in after-tax losses on the announced sale of the
reinsurance businesses (net of operating results). This reflects a transaction
loss of $153 million (including an interest allocation of $15 million) and tax
charges of $47 million, partially offset by operational profits of $103 million.



ABB's net loss for the full year amounted to $767 million, compared to a net
loss of $783 million in 2002.



Cash flow

Net cash used in operations for the group was $161 million for 2003, compared to
cash provided by operations of $19 million in 2002. The two core divisions
contributed a combined cash flow from operations in the year of $1,464 million,
up 70 percent from $859 million in 2002. This was more than offset by cash
outflows of $860 million in Corporate activities that were driven by asbestos
cash outflows of $388 million and higher interest payments; $239 million from
Non- core activities, mainly from the Building Systems business; and $526
million from the former Oil, Gas and Petrochemicals division, reflecting lower
net income and higher working capital.



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





Further information

The 2003 Q4 and full-year results press release and presentation slides are
available from February 19, 2003 on the ABB Investor Relations homepage at
www.abb.com/investorrelations.



ABB will host a press conference and live Webcast and telephone conference today
starting at 0930 Central European Time (CET). Journalists can register for the
event and find dial-in information by visiting ABB's Web site at www.abb.com.



A conference call and live Webcast for analysts and investors is scheduled to
begin at 1230 CET. Callers should dial [phone] (Europe), or +1 412 858
4600 (from the U.S. and Canada). 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 96
hours. Playback numbers: [phone] (Europe) or [phone] (U.S. and
Canada). The entry code is 097 followed by the # key.



The Webcast will be available through our Web site at www.abb.com/
investorrelations and will be archived approximately two hours after the close
of the Webcast for a period of three months.



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 115,000 people.



Zurich, February 19, 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.




                                    Appendix

ABB key figures Q4 and full year 2003
$ in millions                                           Q4 2003        Q4 20021        % change
                                                                                  Nominal     Local
Orders        Group                                       4,674           4,288          9%        -5%

                Power Technologies                        1,960           1,569         25%        12%
                Automation Technologies                   2,637           2,169         22%         8%
                Non-core activities                         292             913
                Corporate                                  -215            -363
Revenues      Group                                       5,081           5,008          1%       -11%
                Power Technologies                        2,184           2,010          9%        -3%
                Automation Technologies                   2,774           2,379         17%         3%
                Non-core activities                         410             955
                Corporate                                  -287            -336
EBIT*         Group                                         187               1          na         na

                Power Technologies                          170              93         83%
                Automation Technologies                     225             107        110%
                Non-core activities                         -62             -78
                Corporate                                  -146            -121
EBIT margin   Group                                        3.7%              0%
                Power Technologies                         7.8%            4.6%
                Automation Technologies                    8.1%            4.5%
                Non-core activities                          --              --
                Corporate                                    --              --
Net loss                                                   -387            -828
                                                      Full year Full year 20021        % change
                                                           2003                   Nominal     Local
Orders        Group                                      18,703          17,352          8%        -5%

                Power Technologies                        7,708           6,753         14%         4%
                Automation Technologies                   9,961           8,680         15%         2%
                Non-core activities                       2,313           3,477
                Corporate                                -1,279          -1,558
Revenues      Group                                      18,795          17,466          8%        -6%
                Power Technologies                        7,680           6,963         10%         0%
                Automation Technologies                   9,897           8,464         17%         3%
                Non-core activities                       2,537           3,447
                Corporate                                -1,319          -1,408
EBIT*         Group                                         656             346         90%

                Power Technologies                          563             433         30%
                Automation Technologies                     773             517         50%
                Non-core activities                        -181            -181
                Corporate                                  -499            -423
EBIT margin   Group                                        3.5%            2.0%
                Power Technologies                         7.3%            6.2%
                Automation Technologies                    7.8%            6.1%
                Non-core activities                          --              --
                Corporate                                    --              --
Net loss                                                   -767            -783

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

1 Adjusted to reflect the move of activities to Discontinued operations in 2003


                                    Appendix
                                    (cont'd)

Non-core activities full-year revenues and EBIT 2002-2003

US$ in millions                                      Revenues                          EBIT
                                                    2003            20021          2003            20021
Equity Ventures                                       26               19            76               43
Remaining Structured Finance                          48               66           -65               96
Building Systems                                   1,829            2,375          -104             -113
New Ventures                                          53               50           -21              -37
Other Non-core activities3                           581              937           -67             -170
Total                                              2,537            3,447          -181             -181

1 Adjusted to reflect the move of activities to Discontinued operations in 2003

2 Comprises mainly the former Group Processes division, whose remaining
activities will be allocated to the core divisions in 2004 and no longer
reported under Non-core activities





Reclassifications

The company has adjusted its 2003 income statement and balance sheet to reflect
the reclassification of various businesses, including its reinsurance business
whose sale was announced in December 2003, to discontinued operations. The
income statements and balance sheets below reflect these reclassifications for
the first three quarters of 2003.



ABB income statement Q1-Q3 2003
$ in millions                                                     Q3 2003       Q2 2003       Q1 2003
Revenues                                                               4,554         4,843         4,317
Cost of sales                                                        (3,434)       (3,557)       (3,235)
Gross profit                                                           1,120         1,286         1,082
Selling, general and administrative expenses                           (934)       (1,041)         (952)
Amortization expense                                                    (11)          (10)          (10)
Other income (expense), net                                               59          (95)          (25)
Earnings before interest and taxes                                       234           140            95
Interest and dividend income                                              38            29            40
Interest and other finance expense                                     (160)         (115)         (165)
Income (loss) from continuing operations before taxes and                112            54          (30)
minority interest
Provision for taxes                                                     (40)          (19)            11
Minority interest                                                       (26)          (19)          (11)
Income (loss) from continuing operations                                  46            16          (30)
Loss from discontinued operations, net of tax                          (326)          (71)          (15)
Net loss                                                               (280)          (55)          (45)




                                    Appendix
                                    (cont'd)



ABB balance sheet March to September 2003
$ in millions                                                   Sept. 30 2003   June 30 2003  Mar. 31 2003
Cash and equivalents                                                     2,057          1,894        1,634
Marketable securities                                                      516            484          524
Receivables, net                                                         5,309          5,384        5,155
Inventories, net                                                         2,606          2,577        2,459
Prepaid expenses and other                                               1,928          2,020        1,933
Assets held for sale and in discontinued operations                      7,182          7,760        7,549
Total current assets                                                    19,598         20,119       19,254
Financing receivables, non-current                                       1,515          1,426        1,488
Property, plant and equipment, net                                       2,776          2,736        2,703
Goodwill                                                                 2,285          2,275        2,243
Other intangible assets, net                                               576            568          577
Prepaid pension and other related benefits                                 522            533          531
Investments and other                                                    1,277          1,131        1,476
Total non-current assets                                                 8,951          8,669        9,018
Total assets                                                            28,549         28,788       28,272

Accounts payable, trade                                                  2,846          2,890        2,714
Accounts payable, other                                                  1,159          1,258        1,103
Short-term borrowings and current maturities of long-term                3,083          3,590        3,279
borrowings
Accrued liabilities and other                                            5,249          4,898        5,022
Liabilities held for sale and in discontinued operations                 5,435          5,979        5,859
Total current liabilities                                               17,772         18,615       17,977
Long-term borrowings                                                     5,244          4,576        4,851
Pension and other related benefits                                       1,741          1,674        1,665
Deferred taxes                                                             789            792          902
Other liabilities                                                        1,735          1,640        1,561
Total liabilities                                                       27,281         27,297       26,956
Minority interest                                                          249            214          238
Total stockholders' equity                                               1,019          1,277        1,078
Total liabilities and stockholders' equity                              28,549         28,788       28,272







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


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


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


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            The company news service from the London Stock Exchange