Interim Results

ABB Ltd
24 July 2001



ABB Media Relations                        ABB Investor Relations
Thomas Schmidt                             Switzerland: Tel. [phone]
Tel: [phone]                        Sweden: Tel. [phone]
Fax: [phone]                        USA: Tel. [phone]
[e-mail]                 [e-mail]        
                                  

For your business and technology editors
 

ABB cites difficult markets - revises outlook, initiates cost reduction program 

* Revenues flat, up 7 percent in local currencies 
* EBIT down 21 percent, 4 percent up excluding one-time capital gains 
* Transformation on track 
* Aggressive cost reduction program   

Zurich, Switzerland, July 24, 2001 - ABB today said revenues were flat, but up 7
percent in local currencies for the first half of 2001. Earnings before interest
and taxes were down 21 percent, but up 4 percent excluding one-time capital
gains, reflecting underlying improvements in operational performance. The
company said it would cut 12,000 jobs - eight percent of its workforce - over
the next 18 months to counter difficult market conditions. 


US$ in millions, except per share data      1H 2001  1H 2000  Change  Change in 
                                                                       local    
                                                                      currencies


Orders                                      12,648    13,647     - 7 %   - 1 % 

Revenues                                    11,099    11,068   +/- 0 %   + 7 % 

Earnings before interest and taxes (EBIT)      626       791    - 21 %  - 15 % 

Income from continuing operations              329       544    - 40 %  

Income from discontinued operations and        
accounting changes                             (63)      548   

Net Income                                     266     1,092    - 76 %  

Basic and diluted earnings per share (US$) from:
 
- Income from continuing operations           0.29      0.46
- Net income                                  0.23      0.93
 
EBITDA                                       1,010     1,168    - 14 %   - 7 % 

ABB said its transformation to a customer-centric organization is proceeding on
schedule, with the basic structure in place in most markets.

'Our results reflect uncertainty in the investment climate as the U.S. slow-down
spreads into Europe and Asia, yet our underlying operational performance is
improving if you look at earnings excluding one-time capital gains,' said ABB
president and CEO Jorgen Centerman. 'Our goal to grow the  business remains
unchanged. We are taking action now to improve our competitiveness, as we expect
challenging conditions over the next 12 months.'

Centerman said ABB's cost reduction plan requires a cut of 12,000 jobs in the
next 18 months. About one third of the job reductions are estimated to come
through natural attrition. The program is expected to cost US$ 500 million over
the 18 month period, and the annual cost reduction - once the plan is fully
implemented - is estimated at about the same level.

Financial results for the first half 2001

Orders decreased 7 percent to US$ 12,648 million or 1 percent expressed in local
currencies. Base orders, defined as below US$ 15 million, remained flat in
nominal terms but were up 6 percent in local currencies when compared with the
first half of last year. Large orders (above US$ 15 million) declined 36 percent
in nominal terms or 31 percent in local currencies over the same period.

The order backlog increased since year end 2000 by 4 percent in nominal terms
and 10 percent in local currencies to US$ 15,373 million. 

Revenues were flat at US$ 11,099 million and up 7 percent in local currencies,
with oil, gas and petrochemicals reporting 26 percent growth, in nominal terms. 

Earnings before interest and taxes fell 21 percent to US$ 626 million compared
to the first half of 2000, and 15 percent when expressed in local currencies.
This includes other income from equity accounted companies and license income of
US$ 107 million, restructuring charges of US$ 20 million, and a small capital
loss. EBIT was up 4 percent in nominal terms and 11 percent in local currencies,
excluding one-time capital gains. Capital gains were US$ 184 million in the
first half of last year versus a capital loss of US$ 6 million this year.

Income from continuing operations was down 40 percent to US$ 329 million,
primarily due to substantially lower capital gains, but also due to higher
interest expense associated with repurchased shares as well as the write-off of
US$ 39 million of deferred costs associated with the company's decision late in
the second quarter to cancel its plans to offer shares in the U.S. 

Net income was 76 percent lower. The main reason was a one-time gain of US$ 548
million recorded last year from the sale of the former Power Generation segment.
In addition, there was a charge of US$ 63 million booked in the first quarter
which was required upon adoption of the new accounting standard FAS 133.

ABB's net cash provided by operating activities was US$ 79 million for the first
half, up from US$ 60 million for the same period last year. For the second
quarter alone, net cash provided by operating activities was US$ 296 million
versus US$ 37 million last year.

Stockholders' equity declined to US$ 3,213 million at June 30, 2001, mainly due
to the purchase of treasury shares. 

As of June 30, 2001, ABB employed 163,838 people compared to 160,818 at year end
2000. Excluding acquired and divested companies, the number of people increased
by 0.3 percent. The main reason employee numbers increased was due to the larger
number of personnel needed for project execution in Oil, Gas and Petrochemicals.
This increase was partly compensated for by decrease in other segments.

Outlook (1)

The outlook has changed (2).

For 2001, revenues are expected to increase in comparison to 2000. EBIT is
expected to be well above last year's level, excluding capital gains for both
years. Income from continuing operations is expected to be below last year, due
to the high level of one-time capital gains in 2000. Net cash provided by
operating activities is expected to increase.

The target to grow revenues on average by 6 percent annually through 2005
(excluding major acquisitions and divestments) remains unchanged. The target for
EBIT margin has been changed to reach 9-10 percent by 2005. 

(1) Assumes no major currency effects.
(2) ABB's outlook as stated during the first-quarter results on April 24, also  
    assuming no major currency effects was: The outlook for the full year 2001  
    remains unchanged: Revenues are expected to increase in comparison to 2000, 
    and EBIT, income from continuing operations and cash flow from operating    
    activities are expected to be well above last year's levels, assuming       
    current mixed business conditions continue. 

    For the first six months of 2001, EBIT growth is expected to lag revenue    
    growth due to the high level of one-time items in the first half of 2000.   
    The second half of 2001 is expected to see higher comparative earnings      
    growth. Mid-term targets remain unchanged. 

Highlights of the second quarter 2001:

* ABB acquired 99.1 percent of Entrelec for about US$ 360 million, including
assumed debt. The French company is a leading supplier of industrial
automation and control equipment, operating in 17 countries and employing about
2,000 people.

* ABB won contracts worth about US$ 300 million to design and build two
high-voltage power transmission systems with a combined length of nearly 
1,300 kilometers to help satisfy the steadily increasing demand for energy in
Brazil.

* ABB won a US$ 70 million contract to upgrade a key oil pipeline in Algeria.

* ABB and The Dow Chemical Company signed a 10-year, global strategic agreement
to infuse Dow's plants with a new generation of ABB Industrial IT technologies
to link operations and enhance productivity.

* Norsk Hydro, the Norwegian energy resource group, awarded ABB a two-year, US$
110-million order and extended a framework agreement for five years to continue
maintaining and modifying oil and gas installations in the North Sea.

Industrial IT established in ABB's customer base

ABB won a string of key Industrial IT orders. The company says Industrial IT,
which links products, services, solutions and real-time asset control and
business information under a common architecture for fast and easy deployment,
helps customers increase competitiveness in the networked world. ABB says
deliveries of components, systems and software mark an important step toward
leveraging the full potential of ABB's Industrial IT concept. ABB also won a US$
17-million contract to automate one of the world's largest paper machines with
Industrial IT solutions for Papierfabrik Palm in Germany. The agreement follows
similar contracts with Visy Industries of Australia.

Transformation on schedule

The transformation of ABB into a customer-centric group is progressing on
schedule. The basic structure is now in place in most markets. 

The transformation outlined in January is based on the creation of six new
customer divisions - four serving utilities, process industries, manufacturing
and consumer industries, the oil, gas and petrochemicals sectors - and two
product divisions serving both ABB and external channel partners for power and
automation technology products. ABB's Financial Services division remains
unchanged. The realignment is being supported by common group processes and
infrastructure throughout ABB in key areas such as quality control, supply chain
management, eBusiness development and information systems. 

To support its customer-centric approach, ABB has appointed numerous key
personnel to account management positions and increased their training to better
present all of ABB's offerings to customers. These efforts will continue and
grow further as the new structure and way of working penetrates the group.

As outlined earlier, ABB will report according to its new structure starting
with the third-quarter results this year. In mid-September, ABB will publish
restated historical figures according to its new business divisions and hold
analysts' meeting to discuss these figures and divisional strategies.

Segment reviews

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 continued to unfavorably impact results during the second
quarter. All figures reflect the first six months' activity and, except for EBIT
margins,comments refer to local currency figures.

Automation

US$ in millions, except where indicated        2001    2000    Nominal   Local
 
Orders                                        3,921   4,334      - 10%    - 4% 
Revenues                                      3,564   3,609       - 1%    + 5% 
EBIT                                            233     253       - 8%    - 2% 
EBIT Margin                                    6.5%    7.0% 
  
Demand continued to show a mixed picture across automation markets and
businesses, with generally weak markets in the U.S. and Asia for the second
quarter of 2001. Overall, orders were down 4 percent as double digit growth in
business areas Petroleum and Chemicals as well as Drives and Power Electronics
was offset by sharp downturns in Flexible Automation (due to the weak demand in
automotive markets) as well as Pulp, Paper and Metals.

Revenues were up 5 percent, reflecting mixed conditions as continued strength in
certain sectors - Petroleum and Chemicals, Marine and Turbochargers, and Drives
and Power Electronics - were counterbalanced by sharp declines in Pulp, Paper
and Metals. Other business areas reported flat or slightly higher revenue
growth.

EBIT was slightly down, and EBIT margin fell to 6.5 percent from 7 percent last
year. Excluding one-time capital gains, EBIT was up 17 percent. 

Power Transmission 

US$ in millions, except where indicated        2001    2000    Nominal   Local
 
Orders                                        1,986   2,088       - 5%    + 2% 
Revenues                                      1,550   1,591       - 3%    + 4% 
EBIT                                            109     143       - 24%   - 20% 
EBIT Margin                                    7.0%    9.0% 
  
Demand in Asia and the Americas remained high during the first half of the year
- despite the slowdown of the U.S. economy - while Europe, the Middle East and
Africa were relatively flat. Large Brazilian orders fuelled double-digit growth
in High-Voltage Products and Substations and Power Transformers' intake remained
at last year's high level. Overall, orders increased by 2 percent as customers
deferred large Power System orders.

Total revenues were up 4 percent. High-Voltage Products and Substations recorded
an increase, while declines were reported in other business areas. In Power
Transformers and Power Systems, the declines were due to delivery delays, the
latter as a result of delays in permitting and regulatory approvals.

EBIT decreased 20 percent due to overcapacity and project delays in Power
Systems and Power Transformers, which was only partly offset by double-digit
improvement in High Voltage Products and Substations. EBIT margin consequently
reduced to 7 percent from last year's 9 percent. 

Power Distribution 

US$ in millions, except where indicated        2001    2000    Nominal   Local 

Orders                                        1,410   1,717      - 18%   - 13% 
Revenues                                      1,257   1,402      - 10%    - 6% 
EBIT                                             67      96      - 30%   - 31% 
EBIT Margin                                    5.3%    6.8%
   
The Distribution segment experienced worsening demand conditions in the first
half, with good developments in South America, China and India, flat markets in
Europe, the Middle East, and Africa, and substantial slowdowns in North America.
Orders fell 13 percent when compared with last year's high intake levels in most
business areas, and Distribution Transformers was particularly affected by the
slowdown in the U.S.

Revenues declined by 6 percent due to difficulties in the Distribution
Solutions, particularly in the airport businesses. Other business areas reported
flat sales.

EBIT dropped 31 percent as a result of earnings shortfalls in Distribution
Solutions and Distribution Transformers, which were due to increased base
commodity costs. Earnings in Medium Voltage Equipment improved. Overall, EBIT
margin declined from 6.8 percent to 5.3 percent for the period. 

Building Technologies 

US$ in millions, except where indicated        2001    2000     Nominal   Local 

Orders                                        3,126   3,350      - 7%     + 1% 
Revenues                                      2,888   2,868      + 1%     + 9% 
EBIT                                            180     202     - 11%     - 5% 
EBIT Margin                                    6.2%    7.0% 
  
Markets continued to slow in the second quarter as the U.S. downturn spread to
Europe, although demand in certain countries - notably China and parts of Middle
East and Africa - stayed strong. Orders increased slightly by 1 percent.

Revenues were up 9 percent in local currencies. All business areas contributed
to the increase.

EBIT fell 5 percent and the EBIT margin decreased to 6.2 percent from 7 percent.
Excluding one-time capital gains, EBIT increased by 15 percent. Higher earnings
from Low Voltage Products and Systems were offset by deterioration in Building
Systems, which suffered from worsening business conditions in some markets,
while other business area earnings remained stable on a like-for-like basis. 

Oil, Gas and Petrochemicals 

US$ in millions, except where indicated        2001    2000     Nominal   Local
 
Orders                                        1,985   1,991     +/- 0%    + 2% 
Revenues                                      1,527   1,212      + 26%   + 32% 
EBIT                                             88      65      + 35%   + 41% 
EBIT Margin                                    5.8%    5.4% 
  
Oil prices remained firm during the second quarter, although still at a lower
average price than in the first half of last year. Upstream business had
continued good demand, although downstream business is starting to show signs of
an economic slowdown. 

Orders increased slightly in spite of the very high order intake during the
first half of last year. Upstream recorded double-digit order growth, offsetting
lower Downstream orders. Tendering activity is high which is expected to
generate good order intake in the second half.

Revenues were up 32 percent on execution of orders booked last year. Most of the
growth was generated in the upstream market.

EBIT growth of 41 percent outstripped revenue growth, contributing to an
improvement in EBIT margin to 5.8 percent. Despite signs of slowdown in
Downstream, margins on underlying business remained stable. 

Financial Services 

US$ in millions, except where indicated        2001    2000     Nominal   Local
 
Revenues                                      1,019     984       + 4%     + 9% 
EBIT                                            203     188       + 8%    + 17% 

Currency and capital markets continued to be volatile and showed no clear trend
in the second quarter, with equity markets generally lower than last year.
Increased uncertainty about GDP growth and interest rate levels has led to
generally higher borrowing spreads, even for highly rated corporate borrowers.
Financial Services has not been negatively affected by these developments. 

Revenues were up 9 percent, while EBIT growth reached 17 percent over the
period. All business areas except Insurance reported increased earnings,
reflecting profitable portfolio growth and successful trading performance.
Insurance did not reach last year's profit levels as a result of lower earnings
on its investment portfolio, following the downturn in capital markets. 

Reporting dates

The company will host a conference call to discuss its first half results today
at 16:00 Central European Time (CET). Teleconference callers should dial +41 91
610 4111 in Europe and [phone] in the U.S. The remaining quarterly
reporting date in 2001 for ABB Ltd is scheduled for October 24. 

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, 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. 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.
 

Consolidated Income Statements
                                          January - June       April - June
                                          2001      2000      2001      2000
                                                    (Unaudited) 
                                       (US$ in millions, except per share data)

Revenues                            $  11,099   $ 11,068  $  5,719  $ 5,809
Cost of sales                         (8,330)    (8,226)   (4,348)  (4,367)
Gross profit                            2,769      2,842     1,371    1,442
Selling, general and
 administrative expenses              (2,108)    (2,123)   (1,054)  (1,058)
Amortization expense                    (116)      (102)      (58)     (47)
Other income (expense), net                81        174        33      139
Earnings before interest and taxes        626        791       292      476
Interest and dividend income              284        298       142      159
Interest and other finance expense      (413)      (291)     (233)    (137)
Income from continuing operations
 before taxes and minority interest       497        798       201      498
Provision for taxes                      (146)      (238)      (59)    (149)
Minority interest                        (22)       (16)      (14)     (11)
Income from continuing operations         329        544       128      338
Income (loss) from discontinued
 operations, net of tax                     -        548         -      699
Change in accounting principles
 (introduction of FAS 133)               (63)          -         -        -
Net income                           $    266   $  1,092   $   128  $ 1,037
Weighted average shares outstanding     1,151      1,175     1,130    1,173
Dilutive potential shares                   6          7         6        7
Diluted weighted average
 shares outstanding                     1,157      1,182     1,136    1,180

Basic earnings per share:
 Income from continuing operations    $  0.29   $   0.46   $  0.11  $  0.29
Income (loss) from
         discontinued operations            -       0.47         -     0.60
Change in accounting principles        (0.06)                    -        -
 Net income                          $   0.23   $   0.93   $  0.11  $  0.89

Diluted earnings per share:
 Income from continuing operations   $   0.29    $  0.46   $ 0.11   $  0.29
 Income (loss) from
  discontinued operations                   -       0.47        -      0.59
 Change in accounting principles       (0.06)          -        -         -
 Net income                           $  0.23    $  0.93   $ 0.11   $  0.88


Consolidated Balance Sheets
                                              At June 30,     At December 31, 
                                                 2001             2000
                                                      (Unaudited)
                                                    (US$ in millions)

Cash and equivalents                           $ 1,955           $ 1,397
Marketable securities                            3,551             4,209
Receivables, net                                 8,473             8,328
Inventories, net                                 3,456             3,192
Prepaid expenses and other                       2,578             1,585
Total current assets                            20,013            18,711
Financing receivables, non-current               4,300             3,875
Property, plant and equipment, net               2,975             3,243
Goodwill and other intangible assets, net        3,391             3,155
Investments and other                            2,051             1,978
Total assets                                  $ 32,730          $ 30,962

Accounts payable, trade                        $ 3,584           $ 3,375
Accounts payable, other                          2,326             2,363
Short-term borrowings and current
 maturities of long-term borrowings              6,388             3,587
Accrued liabilities and other                    6,957             6,127
Total current liabilities                       19,255            15,452
Long-term borrowings                             4,416             3,776
Pension and other related benefits               1,640             1,790
Deferred taxes                                   1,301             1,528
Other liabilities                                2,615             2,924
Total liabilities                               29,227            25,470
Minority interest                                  290               321
Total stockholders' equity                       3,213             5,171
Total liabilities and stockholders' equity    $ 32,730          $ 30,962



Consolidated Statements of Cash Flows

                                                   January  -  June
                                                     2001      2000
                                                       (Unaudited)
                                                   (US$ in millions)
Operating Activities
Income from continuing operations                   $ 329       $ 544

Adjustments to reconcile income from continuing
 operations to net cash provided
 by operating activities:

Depreciation and amortization                         384         377
Changes in restructuring provisions                   (28)          7
Pension and post-retirement benefits                   11         (42)
Deferred taxes                                         41          82
Net gain from sale of  property, plant and equipment   (6)        (99)
Other                                                  22          16
Changes in operating assets and liabilities
  Marketable securities - trading                      64        (281)
  Trade receivables                                  (177)        195
  Inventories                                        (531)       (126)
  Trade payables                                      265        (125)
  Other assets - liabilities                         (295)       (488)
Net cash provided by operating activities          $   79      $   60

Investing Activities
Changes in financing receivables                     (939)       (476)
Purchases of marketable securities
 (other than trading)                              (1,628)     (1,379)
Purchases of property, plant and equipment           (364)       (254)
Acquisitions of businesses (net of cash acquired)    (504)       (126)
Proceeds from sales of marketable securities
 (other than trading)                               1,823       1,174
Proceeds from sales of property, plant and equipment   54          61
Proceeds from sales of businesses
 (net of cash disposed)                                32          87

Net cash used in investing activities            $ (1,526)     $ (913)

Financing Activities
Changes in borrowings                               3,969         965
Treasury and capital stock transactions            (1,247)        284
Dividends paid                                       (502)       (531)
Other                                                 (44)        (25)

Net cash provided by financing activities         $ 2,176       $ 693
Net cash provided by discontinued operations          (94)      1,266
Effects of exchange rate changes on cash
 and equivalents                                      (77)        (44)

Net change in cash and equivalents                    558       1,062
Cash and equivalents-beginning of year              1,397       1,615

Cash and equivalents-end of period                $ 1,955      $2,677

Interest paid                                     $   364      $  314
Taxes paid                                            239         155


ABB Ltd notes to consolidated financial statements (Unaudited) 
(US dollar in millions, except per share amounts)

Note 1  Developments in the six months ended June 30, 2001:

* Share split
At our annual general meeting held on March 20, 2001, our shareholders approved
a four-for-one share split to reduce the nominal value of our shares from CHF 10
each to CHF 2.50 each. The share split became effective as of May 7, 2001.

* Treasury and capital stock
At our annual general meeting held on March 20, 2001 our shareholders approved a
share repurchase of 24 million shares, which corresponds to approximately 2% of
our nominal share capital. As of June 30, 2001 all of the 24 million shares have
been purchased using a second trading line. We intend to propose to our
shareholders at next year's annual general meeting a reduction of our nominal
share capital for the purpose of canceling such shares. 

In addition, at June 30, 2001, we owned approximately 50 million treasury shares
for purposes such as hedging management incentive plans (MIP) and employee share
ownership programs (ESOP). 

In June 2001, the Company settled its outstanding written put options by
repurchasing 18.5 million of its own shares. The Company further issued call
options that give a counterparty the right to acquire up to 18.5 million shares
of the Company at an average rate of CHF 41 per share. The call options expire
in periods ranging from 2004 to 2006 and were recorded as equity instruments in
accordance with EITF 00-19, Accounting for Derivative Financial Instruments
Indexed to, and Potentially Settled in, a Company's Own Stock. These
transactions are linked to the management of the Company's MIP.

The market value of the ABB shares as of June 30, 2001 was CHF 27.20
(approximately US$ 15.90) per share.

* Listing New York
On April 6, 2001 we listed our American Depositary Shares (ADSs) on the New York
Stock Exchange. Simultaneously, we successfully completed an exchange offer
giving holders of restricted ADSs the opportunity to exchange to our new ADSs
that are eligible for trading on the New York Stock Exchange. One new ADS
represents one registered share. Our new ADSs are traded under the symbol 'ABB'.


Note 2  Significant Accounting Policies
The consolidated financial statements are prepared on the basis of United States
(U.S.) generally accepted accounting principles and are presented in U.S.
dollars ($) unless otherwise stated. Par value of capital stock is denominated
in Swiss francs (CHF). The financial information as of June 30, 2001 should be
read in conjunction with the December 31, 2000 financial statements contained in
the Annual Report and our registration statement on form 20-F for the U.S.
listing.


Introduction of FAS 133

In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, Accounting for Derivative Instruments
and Hedging Activities, which is required to be adopted in years beginning after
June 15, 2000. The Company has adopted the new Statement with effect from
January 1, 2001. The Statement requires us to recognize all derivatives on the
balance sheet at fair value. Derivatives that are not hedges must be adjusted to
fair value through income. If the derivative is a hedge, depending on the nature
of the hedge, changes in the fair value of derivatives will either be offset
against the change in fair value of the hedged assets, liabilities, or firm
commitments through earnings or recognized in other comprehensive income until
the hedged item is recognized in earnings. Based on the Company's derivative
positions at December 31, 2000, the Company has upon adoption at January 1, 2001
recorded a loss from the cumulative effect of an accounting change of $63
million in the consolidated income statement and a reduction of $41 million in
other comprehensive income.


Note 3  Statement of Consolidated Common Stockholders' Equity 
(US dollar in millions)

Balance at January 1, 2001                                           $   5,171
Comprehensive income:

Net income                                                     266
Foreign currency translation adjustments                      (222)
Unrealized loss on available-for-sale securities               (63)
Change in accounting principles (FAS 133) at January 1, 2001   (41)
FAS 133 effect through June 30, 2001                          (149)

Total comprehensive income                                    (209)

Dividends paid                                                            (502)
Treasury stock transactions                                             (1,247)

Balance at June 30, 2001                                               $ 3,213


Note 4  Segment and Geographic Data
For all periods presented, the Company was organized into the following business
segments: 

Automation: Offers products, solutions and services focused on improving quality
and efficiency as well as reducing environmental impacts in industrial and
utility plants. The Company provides knowledge-based, value-added solutions for
the automation needs of customers in these industries. 

Power Transmission: Provides electrical power transmission products, solutions
and services. The Company's customers are mainly electrical utilities, owners
and operators of power transmission systems and energy traders, who deliver
high-voltage electricity from power plants to the distribution networks
providing electrical power to end users. 

Power Distribution: Provides a broad offering of products, solutions and
services, including transformers, substations and circuit breakers, to power
network management services, for the distribution of electricity from the
transmission grid to the end consumer. The Company's principal customers are
utilities that own or operate networks, commercial institutions, such as
airports, hospitals and supermarkets and industrial customers, such as chemical,
automotive and pulp and paper companies. 

Building Technologies: Provides a wide range of products and comprehensive
service and maintenance solutions for industrial, commercial and public
facilities, including low-voltage products, such as switches, fuses, air
handling and lighting systems, as well as programmable facility management
systems that can automatically operate building systems. 

Oil, Gas and Petrochemicals: Provides technologies to customers in the upstream
exploration and production of oil and gas, and downstream refining and
petrochemical processing. 

Financial Services: Offers a wide range of financing, sales support, risk
management services and insurance both within the Company and to third-parties. 

The Company evaluates performance based on earnings before interest and taxes
(EBIT), which excludes interest income and expense, taxes, minority interests,
the results from discontinued operations and other items. 


Segment data

Data per Business Segment
(US dollar in millions)               Orders received            Revenues
                                      January - June          January - June
                            
                                   2001           2000        2001        2000

Automation                       $ 3,921        $ 4,334     $ 3,564     $ 3,609
Power Transmission                 1,986          2,088       1,550       1,591
Power Distribution                 1,410          1,717       1,257       1,402
Building Technologies              3,126          3,350       2,888       2,868
Oil, Gas and Petrochemicals        1,985          1,991       1,527       1,212
Financial Services                 1,019            984       1,019         984
Corporate/Other                     (799)          (817)       (706)       (598)

Total                           $ 12,648       $ 13,647    $ 11,099    $ 11,068


Data per Business Segment      EBIT (operating income)     Depreciation and     
(US$ in millions)                   January - June           amortization
                                                            January - June
                                  
                                   2001           2000        2001         2000

Automation                         $ 233          $ 253       $ 139       $ 129
Power Transmission                   109            143          46          45
Power Distribution                    67             96          33          31
Building Technologies                180            202          55          62
Oil, Gas and Petrochemicals           88             65          37          29
Financial Services                   203            188          12          12
Corporate/Other                     (254)          (156)         62          69

Total                              $ 626          $ 791       $ 384       $ 377

Geographic Information
Data per Region
(US$ in millions)              Orders received                 Revenues
                                January - June                January - June

                                   2001           2000        2001         2000

Europe                           $ 6,595        $ 7,408     $ 6,068     $ 6,150
The Americas                       3,223          3,351       2,879       2,650
Asia                               1,293          1,498       1,192       1,373
Middle East and Africa             1,537          1,390         960         895

Total                           $ 12,648       $ 13,647    $ 11,099    $ 11,068

Orders received and revenues have been reflected in the regions based on the
location of the customer.