3rd Quarter & 9 Mths Results

ABB Ltd
25 October 2000

ABB Media Relations                    ABB Investor Relations
John Fox                               Switzerland: [phone]
Tel: [phone]                    Sweden: [phone]
Fax: [phone]                    USA: [phone]
[e-mail]             [e-mail]


ABB reports solid performance in mixed environment

* Net income from continuing operations 16 percent higher 
* Cash flow up 27 percent; net income per share 13 percent higher
* Group orders up 13 percent; oil and gas up 49 percent, both in local          
  currencies
* Operating margins up in all segments; Automation earnings jump 33 percent
* ABB to launch all employee share/option program

Zurich, Switzerland, October 25, 2000 - ABB, the global technology company,
today reported higher orders, earnings and margins in the first nine months of
2000. ABB President and CEO Goran Lindahl said continuing expansion in software,
Industrial IT, eBusiness and telecommunications infrastructure 'ensures we can
offer our whole range of customers more intelligent products, systems, and
solutions and solidifies our portfolio of businesses and technologies geared to
the digital economy.'

US$ in millions 
unless otherwise stated  Jan. - Sep.   Jan. - Sep.  Change in  Change in local  
                         2000          1999 1)      normal     currencies  

Orders Received          19,392        18,360       + 6%        + 13% 
Revenues                 15,983        17,423       - 8%        - 1% 
Operating Earnings after 
Depreciation 2)           1,414         1,287      + 10%        + 17% 
Net Income from 
continuing operations       848           734      + 16%        + 23% 
Net Income                1,250         1,108      + 13%        + 20% 
Net Income per Share (US$) 4.17          3.69      + 13%  

1) Restated to reflect the effect of the discontinued operations within ABB's   
   former Power Generation segment. A comparison to the figures reported in 1999
   can be found in the Appendix.
2) Consistent with the half year report, earnings and capital gains related to  
   discontinued operations are reported on a separate line in the income        
   statement and consequently are not included in operating earnings.

Lindahl said ABB continued to implement its strategy of expanding its high-tech
offerings to meet the rapidly evolving needs of its customers, which for ABB
means moving deeper into higher growth and higher margin activities based
increasingly on knowledge.

'ABB is now among the leading enablers of the digital economy supporting our
customers as they take on today's fast-changing eBusiness and IT-based markets,'
he said. 'We have years of experience designing, financing and executing
infrastructure projects and recently strengthened our business portfolio with
key software and other information technologies. This is a unique combination of
capabilities and experience.'

Highlights of the period include:
* Increased orders for all segments in local currencies
* Sharply higher operating earnings in Automation and Power Distribution
* Orders in the Americas grew more than 25 percent

Orders for the ABB Group increased by 13 percent in local currencies or 6
percent as reported to US$ 19,392 million (1999: US$ 18,360 million (1))). In
local currencies, all segments reported higher orders. The order backlog - a
strong indicator of future revenues - reached US$ 15,262 million at the end of
September (year-end 1999: US$ 13,245 million), an increase of US$ 2,017 million,
or 15 percent (26 percent in local currencies).

The need for increased efficiency and productivity gains as competition
increases in globalizing and deregulating markets is driving demand growth in
ABB's industrial and utility markets. Rapid advances in information technologies
- both software and hardware - are accelerating this trend. Stronger oil prices
are fueling demand in the oil, gas and petrochemicals markets. Demand for
complete solutions is creating new demand for innovative financial services
linked to the supply of ABB's industrial products and systems.

Demand in European markets varied by country and business and was 7 percent
higher in local currencies compared to the same period last year. North American
demand continued to grow and South America showed a significant increase in
orders. Orders in the Americas were up more than 25 percent. Orders from the
Middle East and Africa increased sharply. Demand continued to grow in Asia in
all business segments, except for Power Transmission, where orders were lower
than last year when the segment won several large orders from China.

ABB was awarded several large orders during the third quarter this year,
including a US$ 260-million offshore gas project in Abu Dhabi, a US$ 150-million
telecommunications network infrastructure project in Australia, a US$
120-million contract to provide a power link between Connecticut and Long
Island, New York and a US$ 574-million order for a gas processing plant in
Algeria.

Revenues were flat for the period when expressed in local currencies, or down 8
percent as reported at US$ 15,983 million (1999: US$ 17,423 million). As
previously forecast, revenues were lower in the Oil, Gas and Petrochemicals
segment, as a result of lower 1999 orders. However, orders in the segment are up
more than 40 percent this year, which will benefit revenue development in 2001.
Revenues for Power Transmission decreased, reflecting the divestiture last year
of the standard cable business and the expected initial delays in the European
market due to deregulation.

Industrial IT moves forward
During the third quarter, ABB took several steps to expand its unique Industrial
IT offering. Industrial IT is the umbrella architecture for all of ABB's
automation solutions. It offers a 'plug and produce' software and hardware
capability that allows tailored solutions to link production and transactional
processes for both manufacturing and service-sector customers. Industrial IT
gives companies a complete, easy-to-use and real-time overview of every activity
in the enterprise. Among the most important steps taken in the third quarter:

* a majority joint venture with SKYVA International, a U.S.-based software
company in collaborative commerce integrating the business processes of
suppliers, manufacturers and customers
* the purchase of Base 10, software technologies company to integrate
manufacturing and business systems in the pharmaceutical industry 
* the acquisition of Cellier Engineering Group - expending our competence in the
chemical, oil and paper industries

ABB Automation also rolled out a global launch of four new Industrial IT product
families during the third quarter. They bring browser-enabled, object-based
functionality to process control, system design, operator interface, and
information management systems. They are designed to be fully compatible with
customers' current software platforms to make the most out of their existing
assets. The company is establishing the Web platform needed to support
Industrial IT with a number of new industry-specific Web sites serving sectors
such as pulp and paper, pharmaceuticals, water and textiles.

As a result of these initiatives, ABB can now offer more Industrial IT solutions
to a broader range of customers.

Strategic alliances and acquisitions
ABB formed separate agreements with Nokia and Ericsson to build new-generation
mobile tele-communications networks, furthering its strategy to become a major
player in IT infrastructure. ABB is providing project management and
installations, including lighting, security, temperature control, and emergency
power - as well as systems to ensure a reliable power supply.

The acquisition of Umoe, the Norwegian oil and gas service company, was
completed during the quarter. ABB also announced its participation as a
strategic investor in the IPO of the Chinese petroleum and petrochemicals
company Sinopec.

Through a majority joint venture, ABB acquired a polypropylene technology that
extends its petro-chemicals business into a new high growth area. The joint
venture with Equistar Chemicals of the U.S. purchased the Novolen polypropylene
technology - including catalyst, process and product technologies - from Targor
GmbH, a subsidiary of Germany's BASF AG. It will also acquire the rights to
market and license Targor's metallocene polypropylene technology, used in the
production of a new generation of high performance plastics. 

The company also acquired Energy Interactive Inc., a leading provider of
information software and services to the U.S. energy market. ABB said the
acquisition strengthens its eBusiness, service and support capability in the
dynamic U.S. retail power market.

ABB joined a consortium to operate and maintain a high-voltage power
transmission network - including some 5,500 kilometers of transmission lines -
in the State of South Australia. The move creates significant synergy
opportunities in service and maintenance.

In September, a joint venture was formed by ABB, Deutsche Telekom and Utfors to
apply for a license in Sweden to build and operate a nationwide third-generation
mobile UMTS and GSM network. ABB brings a wealth of experience in the financing
and execution of large infrastructure projects.

New technologies
ABB launched several key technologies in the third quarter. In Oil, Gas and
Petrochemicals, for example, a subsea electrical distribution system was
introduced. The system includes transmission, distribution and control of
electric power on the seabed, in waters as deep as 2,000 meters. In Brunei, ABB
successfully installed its first optical fiber sensor in an oil well to monitor
pressure and temperature in real-time via the Internet.

In addition to the significant Industrial IT launches discussed earlier, ABB
Automation launched a new generation of high-precision robot control, and a new
high-speed gantry robot system for parcel handling aimed at the growing parcel
management business. ABB is the first company to certify an environmental
product declaration under the ISO 14025 standard for an electrical motor. The
declaration outlines the environmental impact of the product over its entire
lifecycle, from design through to disposal or recycling.

In line with its strategy to monitor, diagnose and control power grid components
through the Internet, ABB launched the world's first Smart Integrated
Distribution Unit for secondary power substations. This technology is the first
step to developing Web-based grid monitoring and control systems that will 
eliminate the time and costs of maintenance staff physically visiting grid
facilities. ABB has also installed its SVC Light power quality technology in a
number of steel mills to reduce heavy flickering in both the mill and
surrounding parts of the power grid. SVC Light is also used in links between
small-scale power plants and larger electricity grids.

In Building Technologies, ABB launched a new software tool to measure and
analyze the overall effectiveness of production lines and manufacturing
equipment. This allows customers to quickly de-bottleneck productivity problems,
and allows service people to offer performance-based service contracts. ABB also
developed an intelligent condition monitoring solution which automatically
analyzes and classifies mechanical and electrical problems in rotating machines.
The tool, which is also Web-enabled, increases the speed of diagnosis and
reporting, and reduces the need for high-level experts onsite.

The company is also opening three research and development centers in Asia. ABB
plans to have some 600 researchers and developers working in China, Singapore
and India by the year 2002, focusing mainly on power transmission and
distribution, automation, service and software technologies.

Employee share ownership program
Consistent with Value Based Management, ABB is constantly exploring
possibilities to promote value creation within the company. As an important step
to further enhance value for the stakeholders, ABB plans to implement an
employee stock ownership plan, which should create long-term, broad-based share
ownership throughout the Group. All employees will be offered the opportunity to
invest up to 10 percent of their salary into ABB shares and the company will
match each share with a number of options at no cost to the employee, except
potential taxes. Details of the program will be announced at the annual press
conference in February, 2001.

U.S. listing
Due to the weak and volatile equity markets, particularly with respect to
technology stocks, ABB has taken the decision to postpone its stock market
listing in the United States to 2001. More precise information as to the timing
will be given at the annual press conference in February 2001. The announced
conversion of ABB's accounting systems to follow U.S. generally accepted
accounting principles (US GAAP) is progressing on time, and the company intends
to issue its financial statements the first time for the full year 2000 in line
with these standards.

Segment and regional review 
The ABB Group's reporting currency is the U.S. dollar, which continued to
strengthen against most of ABB's local currencies. The impact of the
strengthened dollar, noted in earlier quarters, continued to weigh on results in
the first nine months of 2000. The discussion in this segment and regional
review is based on local currencies, which provide a more accurate picture of
the company's underlying performance.

Power Transmission orders continued to rebound with support from large
interconnection projects in Latin America and a favorable business climate in
North America. The service and support business continues to be in high demand.
Revenues were down, reflecting last year's divestiture of the standard cable
business and slow order intake. The operating margin improved from 9.8 percent
to 11.2 percent.

Deregulation continued to fuel higher orders and revenues for the Power
Distribution segment. Demand for distribution solutions increased significantly,
with substantial growth in Western Europe. 

Reflecting an increase in all businesses, earnings increased 34 percent.
Productivity improvements helped drive the operating margin to 7.7 percent, up
from 6.3 percent.

The Automation segment showed a 9 percent increase in orders received, with high
growth in Asia, Latin America and the Middle East. Automation Power Products
showed the highest growth rates. Flexible Automation and Marine & Turbochargers
also showed good growth. Revenues were flat, and continuing synergies from the
successful integration of Elsag Bailey, combined with a substantially reduced
cost base, increased earnings by 40 percent. The operating margin increased to
8.2 percent from 5.7 percent.

The business climate in the Oil, Gas and Petrochemicals markets remained
favorable during the third quarter. Oil, Gas and Petrochemicals' orders
increased 49 percent as demand from the downstream petrochemicals market
continued to surge alongside growth in the offshore systems and modification and
maintenance business. The substantial order bookings will gradually flow through
to revenues, starting in the fourth quarter 2000 and continuing throughout 2001.
The operating margin improved to 6.0 percent from 5.2 percent.

Orders received for Building Technologies were 7 percent higher with
particularly strong growth in Asia and the Middle East and Africa. The segment
is experiencing an increase in orders to support the build-up of both
telecommunication and Internet networks. Revenues were 4 percent higher, despite
the discontinuation of the general contracting business and the divestiture of
the non-core service work-shops. Earnings for Building Technologies increased by
15 percent, with significant increases in the product business. The segment's
operating margin reached 7.7 percent compared to 6.8 for the previous year.

Financial Services' revenues increased by 14 percent. Financing for several
projects in India, Poland and China closed and the leasing volume increased
strongly. Earnings were slightly higher than last year's level.

Cash Flow and other key data
ABB's cash flow from operations showed a substantial increase of 27 percent,
well above the earnings increase. Net income from continuing operations
increased by 16 percent to US$ 848 million compared to the same period last year
(1999: US$ 734 million). Return on equity reached 29.9 percent (1999: 25.7
percent). Return on capital employed was 15.5 percent (1999: 15.2 percent).

As of September 30, 2000, ABB employed 162,181 people compared to 164,154 at
year end 1999.

Outlook
For the full-year 2000, the rate of order growth will be in line with the first
nine months. In local currencies, revenues will be above last year's level.
Operating earnings are expected to increase from last year and net income from
continuing operations will continue to be well above 1999's performance. Cash
flow is expected to exceed the level of last year. The company reconfirms its
longer-term targets of 6-7 percent average annual growth in revenues during
2000-2003 and an operating margin of 12 percent by 2003.

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. 

ABB Group

Consolidated Income Statement

(US$ in millions)     Notes     Year to date     
                           January - September     July - September
                           2000      1999 1)       2000     1999 1)
                         
Revenues                    15,983     17,423      5,221     5,918
Material expenses           -6,538     -7,381     -2,128    -2,622
Personnel expenses          -5,182     -5,656     -1,671    -1,935
Other expenses              -2,584     -2,839       -907      -969
Change in work in progress
 and finished goods            234        309         34        94
Depreciation of fixed assets  -565       -607       -192      -198
Unusual items                   66         38         19        -3
Operating Earnings after 
Depreciation                 1,414      1,287        376       285
                         
Earnings from equity 
accounted companies             12          2          6         4
Dividend income                 10          7          2         0
Interest income                264        313         78       121
Interest expense              -462       -537       -156      -187
Exchange differences          -5            4        -23        -5
Income from continuing 
operations before taxes and 
minority interest            1,233      1,076        283       218
                         
Income taxes                  -358       -326        -82       -73
Income from continuing 
operations before minority 
interests                      875        750        201       145
                         
Minority interests             -27        -16        -10        -6
Net Income from continuing 
operations                     848        734        191       139
                         
Income from discontinued 
operations, net of tax 1, 5    402        374         89       130
Net income                   1,250      1,108        280       269
Basic and diluted earnings 
per share, in US$ 2)          4.17       3.69       0.93      0.90

1)     Restated to reflect the effect of the discontinued operations as         
       described in Notes 1 and 5.
2)     Calculation based on 300,002,358 registered shares.

 
ABB Group

Condensed Consolidated Balance Sheet

(US$ in millions)     Note     September 30,  September 30,   December, 31,     
                               2000           1999 1)          1999 1)
Assets                    
Cash and cash equivalents          6,606          7,631        6,288
Other current assets              11,436         12,093       11,591
Total current assets              18,042         19,724       17,879
Fixed assets                      10,358         10,909       11,456
Total Assets                      28,400         30,633       29,335
                    
Liabilities and Equity                    
Current liabilities     3         14,910         16,741       15,893
Non-current liabilities 3          7,671          8,028        7,517
Minority interests                   293            319          317

Stockholders' equity               5,526          5,545        5,608
Total Liabilities and Equity      28,400         30,633       29,335

1)     Restated to reflect the effect of the discontinued operations as
described in Notes 1 and 5.

Condensed Statement of Changes in Equity

(US$ in millions)                         Note     January  -  September
                                                     2000        1999
Equity as of December 31, previous year 
(1999 and 1998, respectively)                         5,608     5,959
               
Inclusion of ABB AB and ABB AG                         --          34
Changes in accounting principles and other items 1)     -29      -903
Adjustment for treasury shares 2)                      -278       --
Dividend payments                                      -541      -503
Translation differences                     4          -484      -150
Net income (9 months)                                 1,250     1,108
Equity as of September 30
(2000 and 1999, respectively)                         5,526     5,545

1)     Introduction in 1999 of revised IAS 19 on employee benefits.
2)     Represents the total purchase price of ABB Ltd shares, including         
       securities with the right to purchase such shares, owned by Group        
       companies at September 30, 2000 which are netted against equity following
       the introduction of IAS SIC 16.

ABB Group

Condensed Consolidated Statement of Cash Flows

(US$ in millions)                                           Year to date
                                                       January  -  September
                                                          2000        1999 1)
Cash Flow from Operating Activities                              
Income from continuing operations before taxes 
and minority interest 2)                                   1,233     1,076
Adjustments of earnings to operating cash                     94       196
Changes in operating assets and liabilities                 -479      -551
Taxes paid                                                  -235      -240
Net Cash Flow from Operating Activities                      613       481
                              
Cash Flow related to Investing Activities                 -1,456    -2,506
                              
Cash Flow related to Financing Activities                   -131       588
                              
Cash provided from sale of discontinued operations         1,682     1,972
                              
Effects of translation differences on cash and cash 
equivalents                                                 -390      -168
                              
Net Change in Cash and Cash Equivalents                      318       367
                              
Cash and cash equivalents - beginning of year              6,288     7,264
Cash and cash equivalents - end of interim period          6,606     7,631

1)     Restated to reflect the effect of the discontinued operations as         
       described in Notes 1 and 5.
2)     Actual interest received/paid does not differ materially from 'Interest  
       Income/Expense' as included in income from continuing operations before  
       taxes and minority interest 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 are based on International Accounting
Standards (IAS) in effect for financial periods beginning on January 1, 2000.
The Principles for Consolidated Financial statements are described in the 1999
year-end Consolidated Financial Statements of ABB. The interim report and notes
are unaudited.

Discontinued operations
During the second quarter 2000, ABB disposed of its former Power Generation
Segment, which included its nuclear business (refer to Note 5) and its
investment in ABB ALSTOM POWER NV. In the Income Statement, the gains from the
sales and earnings related to the disposed segment is shown in a single caption
as discontinued operations both in the 2000 and 1999 nine months figures. 

Note 2, Geographic and Segment Information

Data per Region
(US$ in millions)                    Orders Received 1)       Revenues 1)
                                   January  -  September  January  -  September
                                   2000        1999 2)      2000       1999 2)
Europe (currency effect on 
orders of -12%)                      9,765     10,315       8,893     9,806
The Americas (currency effect on 
orders of -1%)                       4,847      3,853       3,776     4,069
Asia (currency effect on orders 
of -5%)                              2,281      2,447       1,990     2,082
Middle East and Africa (currency 
effect on orders of -8%)             2,499      1,745       1,324     1,466
Total                               19,392     18,360      15,983    17,423

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

Power Transmission                  2,955     3,061          2,346     2,799
Power Distribution 3)               2,356     2,080          2,083     1,978
Automation                          6,174     6,093          5,419     5,890
Oil, Gas and Petrochemicals         3,225     2,286          1,845     2,325
Building Technologies               4,814     4,951          4,274     4,551
Financial Services                    545       510            545       510
Various Activities/Corporate 3)     1,212     1,369          1,177     1,315
Sub-total                          21,281     20,350        17,689    19,368
Intra-Group Transactions           -1,889     -1,990        -1,706    -1,945
Total                              19,392     18,360        15,983    17,423

1)     From third-party customers in each region.
2)     Where relevant, figures have been restated to reflect the effect of the  
       discontinued operations as described in Notes 1 and 5 as well as the     
       cancellation of an order in the Power Distribution segment.
3)     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 3)
                      after Depreciation          January - September     
                      January - September
                       2000     1999                 2000     1999      

Power Transmission       262     273                  327     350     
Power Distribution 2)    161     125                  206     170     
Automation               442     333                  635     469     
Oil, Gas
 and Petrochemicals      110     120                  155     161     
Building Technologies    327     309                  416     410     
Financial Services       253     257                  270     270     
Various Activities/
Corporate 2)            -141    -130     1)           -27      65     1)
Total                  1,414   1,287     1)         1,982   1,895     1)

1)     Restated to reflect the effect of the discontinued operations as         
       described in Notes 1 and 5.
2)     The Distributed Power business has been moved from Various Activities to 
       the Power Distribution segment. 1999 figures are restated accordingly.
3)     Earnings Before Interest, Taxes, Depreciation and Amortization.

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

(US$ in millions)     September 30, 2000     September 30,  December 31, 1999 1)
                                                  1999 1)       
Loans               
Short-term loans                 3,720             5,178             2,910
Medium- and long-term loans      3,936             3,118             3,215
Total loans                      7,656             8,296             6,125
                                                        
1)     Restated to reflect the effect of the discontinued operations as         
       described in Notes 1 and 5.


Note 4, Main Exchange Rates

                                 Average               As of          As of
                              January- September    September 30   December 31
                              2000     1999  Change 2000     1999     1999
Euro          US$ 1.00 = EUR  1.06     0.93     15%  1.14     0.94     1.00
Swedish krona US$ 1.00 = SEK  8.98     8.24      9%  9.72     8.18     8.53
Swiss franc   US$ 1.00 = CHF  1.68     1.48     13%  1.74     1.50     1.60

For the first nine months of 2000, changes in exchange rates had a negative
effect on the reported Income Statement items of about 7 percent compared to the
same period last year. The balance sheet figures were reduced on average
approximately by 8 percent due to the strengthening of the dollar when compared
to December 31, 1999 and 10 percent when comparing to September 30, 1999.

Note 5, Disposal of Adtranz and of Power Generation activities, including the
nuclear business

In the first quarter of 1999, ABB completed the sale of its 50% participation in
ABB Daimler Benz Transportation to DaimlerChrysler. Effective June 30, 1999, ABB
formed a joint venture with ALSTOM, ABB ALSTOM POWER NV, by contributing the net
assets of its power generation business (excluding nuclear and distributed
power).

During the second quarter 2000, ABB sold its 50% participation in the joint
venture ABB ALSTOM POWER NV to ALSTOM for a cash consideration of Euro 1.25
billion and its nuclear business to BNFL for a cash consideration of US$ 485
million. In the consolidated financial statements, all related transactions are
reflected in the caption discontinued operations.

Summarized below is the Income Statement of the former Power Generation segment
excluded from last year's first nine months continuing operations and the
Balance Sheet of the nuclear business, excluded from the Condensed Consolidated
Balance Sheet as per December 31, 1999, except for the equity in that business.

Income Statement                                             Year to date
(US$ in millions)                                        January - September
                                                                 1999 1)

     
Revenues                                                            3,827
Expenses, changes in work in progress, depreciation                -3,729
Unusual items                                                         -34
Operating Earnings after Depreciation                                  64
     
Finance net                                                            -3
Income/loss before Taxes                                               61
     
Taxes and minority interests                                          -18
Net Income                                                             43

1)      The Power Generation business transferred to ABB ALSTOM POWER is
reflected up to the date of transfer, June 30, 1999; the nuclear business is
reflected up to September 30, 1999.

Balance Sheet                                          December 31
(USD in millions)                                        1999 1)
     
Current assets                                             301
Fixed assets                                               166
Total Assets                                               467
     
Current liabilities                                        135
Non-current liabilities                                    246
Stockholders' equity                                        86
Total Liabilities and Equity                               467

1) Figures referring to the nuclear business contained in the Annual Report
1999.

Appendix

ABB Group
Consolidated Income Statement

Reported and restated figures for 1999 to reflect the effect of the accounting
for the discontinued operations.

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

Revenues                                           17,423          17,779     
Material expenses                                  -7,381          -7,460     
Personnel expenses                                 -5,656          -5,711     
Other expenses                                     -2,839          -2,911     
Changes in work in progress and finished goods        309             327     
Depreciation of fixed assets                         -607            -621     
Unusual items                                          38             344     
Operating Earnings after Depreciation               1,287           1,747     
Earnings from the defined power generation business   --               51     
Earnings from equity accounted companies                2              -1     
Dividend income                                         7               7     
Interest income                                       313             312     
Interest expense                                     -537            -537     
Exchange differences                                    4               4     
Income from continuing operations before taxes 
and minority interests                              1,076           1,583    3)
Income taxes                                         -326            -459     
Income from continuing operations before minority 
interests                                             750           1,124    4)
Minority interests                                    -16             -16     
Net Income from continuing operations                 734               
Income from discontinued operations, net of tax       374               
Net income                                          1,108          1,108     

1)     Restated to reflect the effect of the discontinued operations
2)     As reported, September 30, 1999
3)     Previously called Income before taxes
4)     Previously called Net income before minority interests