1st Quarter Results

ABB Ltd
17 April 2000

ABB Corporate Communications, Zurich
John Fox
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ABB Investor Relations, Zurich
Manfred Ebling
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ABB reports record Q1 orders, double-digit operating margin 

- Orders up 12 percent in local currencies
- Operating margin sharply higher at 11.2 percent
- Net income up 26 percent
- Company speeds up shift to service, industrial IT and eBusiness

Zurich, Switzerland, April 17, 2000 - ABB, the global technology company, today
reported a strong increase in earnings, margins and orders in the first three
months of 2000. ABB President and CEO Goran Lindahl said the record first
quarter shows that 'our move into businesses based on knowledge, high-tech,
service and industrial IT is paying off and our underlying profitability is
growing steadily.'


US$ in millions unless otherwise stated     Jan. - Mar.  Jan. - Mar. Change in
                                              2000       1999        percent *)
Orders Received                              7,156        6,808         + 5 %
Revenues                                     5,192        5,520         - 6 %
Operating Earnings after Depreciation          583          528        + 10 %
Net Income                                     381          302        + 26 %
Net Income per Share (US$)                    1.27         1.01        + 26 %

*) In local currencies, orders, revenues and earnings were about 7 percent
higher than shown above. The announced divestitures of ABB's nuclear business
and 50-percent share in ABB ALSTOM POWER are expected to close during the second
quarter and consequently do not have any impact on the first quarter figures.

Highlights of the results include:
- An increase in the company's overall operating margin by 1.6 percentage points
to 11.2 percent or by 3.5 percentage points when including power generation in
1999.
- Sharply higher operating earnings in Building Technologies and Power
Distribution, good improvements in almost all other industrial segments. As
forecasted, Oil, Gas and Petrochemicals earnings remained flat as last year's
low order volume flowed through to revenues.
- Higher orders in most business segments, led by a 50-percent rebound in Oil,
Gas and Petrochemicals. Bidding, especially in Europe, for products, such as
automation systems and lower-end building technologies products, was
substantially higher. These typical leading indicators confirm the anticipated
upturn in various markets, which should further benefit our results by mid-year.

'This was one of the strongest first quarters in ABB's history,' Lindahl said.
'Our return on equity reached 27.8 percent. We continue to expand into
high-growth businesses where we can use our technology strength and global
scope. We are now in a good position to take advantage of economic growth in
almost every part of the world. Our net income and operating cash flow
development shows that we are seeing results from our ongoing efforts to
generate more value from our capital base.' 

Lindahl confirmed ABB's earlier full-year outlook that volumes are expected to
increase in 2000. Earnings, excluding the capital gain from last year's creation
of ABB ALSTOM POWER, are also expected to increase compared to 1999. Cash flow
will grow at least in line with earnings.


The Transformation Continues
ABB moved aggressively during the first quarter in its strategy to increase the
share of its business in knowledge, high-tech and service sectors, where
profitability and return on equity are higher. In particular, we accelerated our
efforts in industrial IT solutions and eBusiness development. Our goal is to
combine our core business strengths with advances in IT and eBusiness to create
entirely new solutions for our customers, and to revolutionize the way we run
our own businesses. We will support the transformation through the listing of
our ABB share in the U.S. Preparations are proceeding well and a listing is
expected in the second half of this year.

'We have taken some big steps to transform ABB into an efficient company with a
lighter asset base,' Lindahl said. 'And there is much more we can do to realize
our full potential.'

Major developments in the quarter:

- ABB agreed to sell its 50-percent stake in the power generation joint venture,
ABB ALSTOM POWER. The future proceeds from the sale, along with those from the
agreed divestiture of our nuclear power business announced last December, will
be used to further expand into higher growth, higher margin areas. Regulatory
approvals are expected during the second quarter. These divestitures do not
affect our outlook for this year nor the longer-term targets for volumes,
earnings and cash flow. ABB's share in the earnings of ABB ALSTOM POWER for
January through March 2000 amounted to $ 20 million.
- ABB acquired a leading U.K.-based power network service company, broadening
its service and complete solution capabilities in the dynamic deregulated U.K.
power market. This was one of several strategic acquisitions made in the
quarter.
- The company formed a partnership with a utility in Sweden to develop a
broadband Internet network. ABB expects to apply its know-how in network
management and service to tap into this growing market in Europe and beyond.
- The largest order in the quarter was part of a $650-million project to build a
greenfield chemical complex in Brazil using ABB's world-leading chemical process
technology.
- ABB stepped up its activities in Industrial IT and eBusiness in the first
quarter.


Growth in Industrial IT and eBusiness
ABB's Industrial IT solutions are in high demand across several business
segments. For example, ABB won an order to upgrade measurement technology at
Mexico's national oil refinery. This order integrates a large scope of ABB
control systems and process analyzers and enhances communication within the
plant's instrumentation system.


________________
1 Included in the item 'Earnings from equity accounted companies' in the income
statement below.



ABB's Smart Enterprise - a tool for putting pulp and paper mills on 'autopilot'
- is being put into a greenfield project in Australia. And a semi-submersible
drilling rig using ABB power and automation systems was recently completed off
the coast of Norway. ABB is further building Industrial IT applications that
will better link manufacturing processes with the needs of eBusiness, like
scheduling, production, ordering and delivery.

Technologies under development include products with built-in Web servers,
allowing them to be accessed, controlled and serviced over the Internet. We
continue to develop wireless solutions to control a variety of industrial
processes remotely, even from a handheld device.

In eBusiness, ABB and a number of partners formed a new company called
b-business partners with an investment base of Euro 1 billion to boost European
business-to-business eCommerce. b-business partners is one step in ABB's
three-pillar strategy for building eBusiness. In this 'technology' pillar,
minority  investment in a number of IT start-ups gives us an overview of the
technologies that are available, and deep insight into those that may be of use
to ABB or our customers. In the second pillar, ABB will form majority-owned
joint ventures to take new application technologies to market. And, in the third
pillar, the company will develop and promote additional eCommerce channels to
market.

ABB unveiled a Web-based eBusiness portal at the Hanover Fair in Germany late
last month. The portal is part of a customer-focused eBusiness platform for key
businesses, third party Web portals and online marketplaces. It features the
opportunity to purchase ABB products online, specialized customer pages, design
and project management tools, solutions banks, and online customer communities.
The company aims to have 30 percent of its standard offerings online within the
year, and the remaining standard products next year.

In total, ABB intends to invest at least $1 billion in Industrial IT, eBusiness
and related activities in 2000 and 2001.


Enhanced Cash Flow and Productivity
Net cash flow from operating activities increased by more than $ 300 million
compared to the first quarter 1999, reaching $ 109 million (1999: $ -202
million). This is the first time that ABB reached a positive operating cash flow
already in the first quarter of its business year.

The return on capital employed for the first quarter 2000 reached 20.0 percent
(1999: 15.7 percent).

The order backlog amounted to $ 15,668 million at the end of March (March 31,
1999: $ 16,668 million).

The number of employees at the end of the quarter was 163,528 (end of March
1999: 171,540). Adjusted for acquisitions and divestitures, the number of
employees decreased by 5 percent. As a result, we expect a sharp productivity
increase to become visible in the coming quarters.


Segment Review
Earnings rose 35 percent in the Building Technologies segment, reflecting higher
demand in Europe and cost improvements. Orders were four percent higher. ABB's
reported figures were negatively affected by exchange rates because the ABB
Group reports in U.S dollars and the dollar increased against those currencies
(mostly European) in which ABB transacts a large portion of its business. When
expressed in local currencies, Building Technologies orders received increased
by 13 percent.

Power Distribution also showed a substantial increase in earnings, up 29 percent
on improved cost control and higher service content. The segment reported a
strong increase in orders, up seven percent, 13 percent in local currencies.
Earnings in Power Transmission were 9 percent higher, reflecting selective
bidding and its market leadership in this competitive industry. Orders in the
segment were lower, reflecting the divestiture of our standard cables business
and a large Asian order taken in the first quarter of 1999.

As predicted, Oil, Gas and Petrochemicals reported flat earnings on lower
revenues as a result of last year's reduced order volume. Orders have rebounded
strongly in the first quarter of this year and are up 50 percent. Automation
earnings were 11 percent higher, including the costs of integrating the Elsag
Bailey acquisition. Orders were off four percent following a number of U.S.
divestitures. Earnings for Financial Services exceeded last year's strong first
quarter.


Outlook
Volumes are expected to increase in the year 2000. Earnings, excluding the
capital gain from last year's creation of ABB ALSTOM POWER, are also expected to
increase compared to 1999. Cash flow will grow at least in line with earnings.
The announced power generation divestitures do not affect our outlook for this
year nor the longer-term ABB targets of 6-7 percent average annual compound
growth during 2000-2003 and an operating margin of 12 percent by 2003.


ABB Group

Consolidated Income Statement

(US$ in millions)                    Note              Year to date
                                               January     -          March
                                                2000      1999 (1)     1999 (2)
                    

Revenues                                       5,192       5,520      6,891
Material expenses                             -2,050      -2,237     -3,103
Personnel expenses                            -1,799      -1,973     -2,388
Other expenses                                  -746        -884     -1,134
Changes in work in progress 
and finished goods                               136         261        488
Depreciation of fixed assets                    -192        -207       -256
Unusual items                                     42          48         36
Operating Earnings after Depreciation            583         528        534
                   
Earnings from the defined power 
generation business                       5       -            5          -
Earnings from equity accounted companies          20          -2         -2
Dividend income                                    3           3          3
Interest income                                  105          81         76
Interest expense                                -167        -189       -184
Exchange differences                               0           3          2
Income before Taxes                              544         429        429
                    
Income taxes                                    -160        -126       -126
Net Income before Minority Interests             384         303        303
                    
Minority interests                                -3          -1         -1
Net Income                                       381         302        302

Basic and diluted earnings 
per share, in US$ (3)                           1.27        1.01       1.01

(1) Reflecting the current ABB composition, excluding the defined power
generation business as described in Notes 1 and 5.
(2) Includes the defined power generation business as described in Notes 1 and  
   5.
(3) Calculation based on 300,002,358 registered shares.


ABB Group

Condensed Consolidated Balance Sheet

(US$ in millions)         Notes  March 31, 2000  March 31, 1999  Dec. 31, 1999

Assets                    
Cash and cash equivalents             6,212         7,625           6,288
Other current assets                 11,803        15,896          11,778
Total current assets                 18,015        23,521          18,066
Fixed assets                         11,168        11,125          11,450
Total Assets                         29,183        34,646          29,516
                   

Liabilities and Equity                    
Current liabilities         3        15,912        21,204          15,921
Non-current liabilities     3         7,612         8,732           7,670
Minority interests                      299           292             317
Stockholders' equity                  5,360         4,418           5,608
Total Liabilities and Equity         29,183        34,646          29,516


Condensed Statement of Changes in Equity

(US$ in millions)                      Note     January    -         March
                                                2000                 1999
              
Equity as of December 31, 
previous year 
(1999 and 1998, respectively)                   5,608                5,959
               
Changes in accounting principles 
and other items (1)                               -29                 -921
Dividend payments                                -432                 -498
Translation differences                4         -168                 -424
Net income (3 months)                             381                  302
Equity as of March 31                           5,360                4,418

(1) Introduction in 1999 of revised IAS 19 on employee benefits.


ABB Group

Condensed Consolidated Statement of Cash Flows

(US$ in millions)                                        Year to date
                                                January        -     March
                                                   2000     1999 (1)   1999 (2)

Cash Flow from Operating Activities               
Income before taxes (3)                            544      429        429
Adjustments of earnings to operating cash          -76      -81        -94
Changes in operating assets and liabilities       -259     -463       -561
Taxes paid                                        -100      -87        -90
Net Cash Flow from Operating Activities            109     -202       -316
              
Cash Flow related to Investing Activities         -240   -1,195     -1,171
           
Cash Flow related to Financing Activities          166    1,300      1,526
               
Effects of translation differences 
on cash and cash equivalents                      -111    -165        -204
               
Net Change in Cash and Cash Equivalents            -76    -262        -165
               
Cash and cash equivalents - beginning of year    6,288   7,275       7,790
Cash and cash equivalents 
- end of interim period                          6,212   7,013       7,625

(1) Reflecting the current ABB composition, excluding the defined power
generation business as described in Notes 1 and 5.
(2) Includes the defined power generation business as described in Notes 1 and  
   5.
(3) Actual interest received/paid does not differ materially from 'Interest
Income/Expenses' as included in income before taxes and is thus not explicitly
shown in the above presentation.


Selected Notes to the Consolidated Financial Statements

Note 1, General and Scope of Consolidation

The Group's accounting principles, based on International Accounting Standards
(IAS) and applied in the interim report for the first three months of 2000, are
described in the 1999 year-end Financial Statements of ABB. The interim report
and notes are unaudited.

1999 column reflecting the current ABB composition
As a consequence of the contribution of the ABB power generation business
(except nuclear, some renewable power and distributed power businesses)
hereinafter called 'the defined power generation business' on June 30, 1999 to
the ABB ALSTOM POWER joint venture (refer to Note 5), the following changes have
been effected to reflect the current ABB composition:
- The Income Statement excludes the defined power generation business from all
positions except for Income before Taxes, Income taxes, Net Income before
Minority interests and Net Income.
- The Statement of Cash Flows excludes all cash flows relating to the operations
of the defined power generation business.


Note 2, Geographic and Segment Information

All figures exclude the defined power generation business (see Notes 1 and 5).

Data per Region
(US$ in millions)              Orders Received              Revenues
                               January   -   March     January   -    March
                                2000         1999      2000           1999

Europe                         3,642         3,788     2,868          3,128
The Americas                   1,961         1,315     1,312          1,307
Asia                             634         1,151       600            610
Middle East and Africa           919           554       412            475
Total                          7,156         6,808     5,192          5,520

Data per Business Segment
(US$ in millions)               Orders Received             Revenues
                                January  -   March    January   -     March
                                 2000        1999 (2)   2000           1999 (2)

Power Transmission              1,022        1,127       757             870
Power Distribution                930          866       656             602
Automation                      2,155        2,251     1,760           1,815
Oil, Gas and Petrochemicals     1,205          802       523             680
Building Technologies           1,821        1,746     1,387           1,471
Financial Services                178          161       178             161
Various Activities/Corporate (1)  644          624       531             566
Sub-total                       7,955        7,577     5,792           6,165
Intra-Group Transactions         -799         -769      -600            -645
Total                           7,156        6,808     5,192           5,520

(1) Various Activities include the remaining nuclear business in all periods.
(2) The Distributed Power business has been moved from Various Activities to the
Power Distribution segment; 1999 figures are restated accordingly.


Data 
Per Business Segment
(US$ in millions)              Operating Earnings            EBITDA (2)
                               after Depreciation
                               January - March            January - March
                                2000      1999 (3)         2000      1999 (3)

Power Transmission                76        70             98         97
Power Distribution                40        31             55         45
Automation                       126       114            192        167
Oil, Gas and Petrochemicals       36        37             50         50
Building Technologies            105        78            136        114
Financial Services                91        89             98         94
Various Activities/Corporate (1) 109       109            143        167
Total                            583       528            772        734

(1) Various activities include the remaining nuclear business in all periods.
(2) Earnings before Interest, Taxes, Depreciation and Amortization.
(3) The Distributed Power business has been moved from Various Activities to the
Power Distribution segment; 1999 figures are restated accordingly.


Note 3, Short-, medium-, long-term loans

(US$ in millions)     March 31, 2000     March 31, 1999     Dec. 31, 1999

Loans               
Short-term loans              3,620            6,704           2,822
Medium- and long-term loans   3,567            2,542           3,137
Total loans                   7,187            9,246           5,959

Note 4, Main Exchange Rates

                                 Average           As of            As of
                              January - March      March 31        December 31
                               2000     1999       2000     1999      1999

Euro           US$ 1.00 = EUR  1.02     0.89       1.05     0.93      1.00
German mark    US$ 1.00 = DEM  2.00     1.75       2.05     1.82      1.95
Swedish krona  US$ 1.00 = SEK  8.68     8.08       8.67     8.24      8.53
Swiss franc    US$ 1.00 = CHF  1.64     1.43       1.67     1.48      1.60

For the first three months of 2000, changes in exchange rates had a negative
effect of about 7 percent on the reported Income Statement items compared to the
same period last year. The balance sheet figures were reduced on average
approximately by 3 percent due to the strengthening of the dollar when compared
to December 31, 1999 and 6 percent when comparing to March 31, 1999. 

Note 5, Transfer of the ABB power generation business and formation of ABB
ALSTOM POWER N.V.

On June 30, 1999, ABB transferred its power generation business (excluding the
businesses described in Note 1 to ABB ALSTOM POWER. Explanation to the
presentation and accounting treatment of the divested power generation business
are given in Note 1. Summarized below are the figures of the defined power
generation business used for the re-statement 1999 (period January-March) in the
presentation reflecting ABB's new composition of the Consolidated Income
Statement.

Income Statement                                              Year to date
(US$ in millions)                                            January - March
                                                                   1999

Revenues     
Revenues                                                          1,490
Expenses, changes in work in progress, depreciation              -1,472
Unusual items                                                       -12
Operating Earnings after Depreciation                                 6
     
Finance net                                                          -1
Income/loss before Taxes                                              5
     
Taxes and minority interests                                         -2
Net Income                                                            3

Note 6, Agreement to sell ABB's share in ABB ALSTOM POWER

ABB and ALSTOM announced on March 31, 2000 that ALSTOM is acquiring ABB's share
in their 50-50 joint company ABB ALSTOM POWER. The sale is subject to the
customary regulatory approvals. The closing of ALSTOM's acquisition is expected
in the second quarter of 2000.

Note 7, Agreement to sell nuclear activities

ABB and the nuclear technology company BNFL of the United Kingdom announced as
at December 29, 1999 that BNFL will purchase ABB's nuclear power business. The
sale is subject to the customary regulatory approvals. This business remains
fully consolidated in ABB's financial statements in the first quarter of 1999
and 2000. The closing of BNFL's acquisition is expected in the second quarter of
2000.

ABB's nuclear business is headquartered in the United States, with main
operations in the United States, Sweden, France and Germany. The divested
businesses also include nuclear control systems. The total businesses to be
transferred employ about 3,000 people and reported revenues in 1999 of about US$
500 million. 


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, 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, and fluctuation in currency exchange
rates. 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.