1st Quarter Results

ABB Ltd
25 April 2002



ABB's operational and financial restructuring on track

Four divisions report order increases over Q4 2001

•     Net income US$ 114 million in Q1

•     EBIT margin in line with outlook of 4-5 percent

•     Operational cash flow seasonally negative, but stronger than in
      Q1 2001

•     Total orders down 5 percent in local currencies from Q4, but
      four divisions report increases

•     ABB to combine most industry customer activities into one
      division

•     Financial strategy progressing on plan


Zurich, Switzerland, April 24, 2002 - ABB said today its net income for the
first quarter of 2002 was US$ 114 million, compared with US$ 138 million in the
same period last year. Its first quarter EBIT margin (4.5 percent) was in line
with its 2002 target. Operational cash flow, at US$ -138 million, was stronger
than in the first quarter of 2001 (US$ -217 million).



Four divisions increased orders in local currencies in the first quarter,
compared to the fourth quarter of 2001. Automation Technology Products grew by
11 percent, Power Technology Products by 21 percent, Process Industries by 12
percent and Manufacturing and Consumer Industries by 3 percent in local
currencies. Total group orders decreased 5 percent compared with the previous
quarter. The order backlog has grown to more than US$ 13.7 billion, an increase
of 4 percent in local currencies since the end of 2001.



Compared to a strong first quarter last year, total orders were down 15 percent
in local currencies. Orders from strategic customers declined less, by only 5
percent.



'We see some favorable early signs in order development, notably in the Power
and Automation Technology Products divisions,' said Jorgen Centerman, ABB
president and CEO. 'It is too soon to say if we have a broader upturn ahead, but
we are confident ABB will reach its revenue and margin targets for the year.
Operationally and financially, we're on track.'



ABB cut another 2,200 jobs in the first quarter, partly through natural
attrition. Restructuring provisions were US$ 55 million.



In line with its strategy to focus on power and automation technologies for
utility and industry customers, ABB announced it intends to divest the Building
Systems business area, currently part of the Manufacturing and Consumer
Industries division. The other three business areas in the Manufacturing and
Consumer Industries division will be combined with the Process Industries
division in a newly-created Industries division.



ABB reported good progress in implementing its financing strategy. The company
will complete the amendment of its US$ 3 billion credit facility tomorrow and
confirmed that nearly all of its original 24 relationship banks have committed
to participate.  ABB also confirmed it is on track to reduce net debt by at
least US$ 1.5 billion in 2002, partly through the divestment of Structured
Finance businesses and other asset sales.



In regard to asbestos claims pending against Combustion Engineering, a US
subsidiary, ABB said that about 13,300 claims were settled in the first quarter,
more than 50 percent without payment. As a result of intensified efforts to
identify and settle valid claims and dispute claims that appear baseless, the
number of pending claims remained at around 94,000 after the first quarter.
Settlement costs prior to insurance reimbursement were US$ 51 million, up from
US$ 37 million in the first quarter last year.




US$ in millions, except per share data      Jan - March 2002  Jan-March 2001      Change      Change in local
                                                                                                   currencies
Orders                                                 5,523           6,786       - 19%                - 15%
Revenues                                               5,149           5,380        - 4%                 - 1%
Earnings before interest and taxes (EBIT)                235             334       - 30%                - 25%
Income  from continuing operations                       108             201       - 46%
Income (loss) from  extraordinary items                    6            (63)
and accounting changes
Net income                                               114             138       - 17%
Earnings per share (US$):                               0.10            0.17

Income  from continuing operations, basic
and diluted:
Earnings per share (US$):                               0.10            0.12

Net income, basic and diluted:
EBITDA                                                   387             524       - 26%                - 22%
Net cash used in operating activities                  (138)           (217)




Organizational and management changes



Dinesh Paliwal, head of the former Process Industries division, will head the
newly created Industries division.



Jan Secher, previously head of the Manufacturing and Consumer Industries
division, will take over from Eric Drewery as head of Group Processes, the
division driving the implementation of common processes and shared services
throughout ABB. Secher will also retain responsibility for the business area
Building Systems, and oversee its divestment.



Drewery is retiring for health reasons after a long, distinguished career with
ABB. Formerly head of ABB's organization in the U.K., he led the Group
Transformation unit last year and assumed responsibility for Group Processes
early this year.



The ABB Board of Directors appointed Bernhard Jucker, 47, new head of the
Automation Technology Products division. Jucker, a Swiss citizen, has headed the
Drives and Power Electronics business area in the Automation Technology Products
division since November 2000. Jucker succeeds Jouko Karvinen, who has accepted
an offer from Philips to head its medical systems business.



Key financial developments



First quarter orders decreased 15 percent expressed in local currencies compared
with the same period in 2001, or 19 percent in nominal terms, to US$ 5,523
million. Year-on-year, all divisions except Power Technology Products reported
lower orders compared to the first quarter of 2001.



Base orders (orders below US$ 15 million) represented 88 percent of total first
quarter orders. Base orders declined about 14 percent in local currencies
compared with the first quarter of 2001, or around 17 percent in nominal terms.
Large orders fell by 28 percent in both local and nominal currency terms.



First quarter revenues were flat in local currencies, and decreased 4 percent in
nominal terms to US$ 5,149 million. Oil, Gas and Petrochemicals and Power
Technology Products reported double digit growth on the back of a strong order
backlog and continued demand for power transmission equipment, respectively.



The order backlog has increased by 2 percent to US$ 13,754 million, or 4 percent
in local currencies, since year-end 2001.



EBIT for the first quarter of 2002 was US$ 235 million, some 30 percent lower
than the same period last year. EBIT included other income of US$ 18 million,
comprising restructuring charges of US$ 55 million (Q1 2001: US$ 6 million),
capital gains of US$ 58 million (Q1 2001: US$ 3 million), US$ 7 million for
write-down of assets (Q1 2001: US$ 1 million), and income from equity accounted
companies, licenses and other of US$ 22 million (Q1 2001: US$ 52 million).



After net interest expense and taxes, income from continuing operations was US$
108 million, 46 percent below first quarter 2001.



Net income decreased by 17 percent to US$ 114 million in the first quarter
compared with the same period last year.



Net cash from operating activities improved year-on-year, but was negative US$
138 million. In line with ABB's usual quarterly pattern, working capital
increased slightly from historically low levels at the end of 2001 and certain
non-cash one-time charges became cash-effective, including restructuring
charges.



Balance sheet and liquidity



Cash and marketable securities totaled US$ 6,583 million at March 31, 2002. Net
debt (defined as short-, medium- and long-term debt less cash and marketable
securities) increased to US$ 4,487 million from US$ 4,077 million at the end of
2001.



In December 2001, the company established a US$ 3 billion committed bank
facility. ABB drew down US$ 2,845 million under this facility in March, securing
more than enough cash to meet all its commercial paper obligations maturing
during the remainder of 2002. The drawdown did not increase ABB's net debt, but
replaced other short-term borrowings and added to cash equivalents.



ABB's liquidity was further strengthened on April 2 when its lead banks
committed to fully underwrite the amended US$ 3 billion credit facility.



As part of its goal to extend the maturity profile of its debt, ABB announced
that it will issue a combination of convertible and straight bonds in the second
quarter of 2002. ABB will start a bond investor road show on April 30 and plans
to price and launch its straight bond issue in mid-May.



Outlook 1



The outlook remains unchanged. For 2002, revenues are expected to be flat in
comparison to 2001. EBIT margin for the full year 2002 is expected to be in the
range of 4-5 percent. EBIT and net cash from operations are expected to be
stronger in the second half of 2002 than in the first half.

ABB's target is to grow revenues on average by 6 percent annually in the period
2001-2005. EBIT margin is expected to reach 9-10 percent by 2005.

1Assumes no major currency effects and excludes major acquisitions and
divestments



Employees



As of March 31, 2002, ABB employed 151,829 people compared to 156,865 at
year-end 2001. Since June 30, 2001, the number of jobs (excluding acquisitions
and divestments) decreased by more than 9,300.



Asbestos update



New claims filed during the first quarter of 2002 in connection with asbestos
litigation against Combustion Engineering, a U.S. subsidiary, were about 14,300,
a decrease of 5 percent compared to the fourth quarter of 2001.



Of about 13,300 claims settled during the period, more than 50 percent were
settled without payment.



Settlement costs prior to insurance reimbursement were US$ 51 million, up from
US$ 37 million in the first quarter last year.



As a result of intensified efforts to identify and settle valid claims and
dispute claims that appear baseless, the number of pending claims remained at
around 94,000 after the first quarter.



Combustion Engineering considers that the full-year trends for 2002 for new
claim filings, claims settled and cash settlements cannot be reliably estimated
based on the first quarter developments and does not consider it necessary to
change provisions.



Technology



Industrial IT, a common systems integration architecture, harmonizes all ABB
offerings and allows the inclusion of third-party products in ABB's
installations for utility and industry customers.



The process of certifying ABB products to its Industrial IT standards was well
ahead of schedule by the end of the first quarter of 2002. Some 9,000 ABB
products and product lines have now been certified. Close to 8,000 were
certified in the first quarter and ABB is committed to ratify all relevant
products and product lines by year-end - a total of about 40,000.



ABB opened a research and development center in the Indian city of Bangalore to
concentrate on software development and Industrial IT. Some 50 software
engineers and programmers are working at the center.



Board of directors



The ABB Board of Directors, in its first meeting for 2002, constituted two board
committees designed to strengthen ABB's corporate governance. The Nomination and
Compensation Committee will be headed by board chairman Jurgen Dormann, with
Martin Ebner and Hans Ulrich Maerki as other members. Bernard Voss will head the
Finance and Audit committee, whose other members are Jacob Wallenberg and Roger
Agnelli.



Division reviews



Power and Automation Technology Products serve their customers through external
channel partners and ABB's end-user divisions. As part of ABB's customer-centric
strategy, some customers are progressively being served directly by channel
partners such as wholesalers, systems integrators and distributors. As a result,
orders, revenues and earnings associated with these customers are no longer
reflected in the end-user divisions.  At the same time, internal eliminations
(currently presented in the line item Corporate/Other) decrease accordingly.
There is no impact on the Group's consolidated results.



The ABB Group's reporting currency is the U.S. dollar, which strengthened
against most of ABB's local currencies since last year. The strengthened dollar
continued to impact results unfavorably during the first quarter. All figures
reflect the first three months activity and, except for EBIT margins, comments
refer to local currency figures.



EBIT excluding capital gains is shown only if the aggregate of such gains for
the division is material (in any case, if capital gains represent more than 10
percent of divisional EBIT).



Utilities


US$ in millions, except where         
indicated                          Jan - March 2002   Jan- March 2001            Change             Change 
                                                                                                  in local
                                                                                                currencies
Orders                                        1,455             1,700             - 14%              - 11%
Revenues                                      1,075             1,196             - 10%               - 7%
EBIT                                             32                40             - 20%              - 17%

EBIT margin                                    3.0%              3.3%



In the Americas, demand from independent power producers for plant and control
systems slowed.

In several key markets investment shifted from power sources to transmission and
distribution.



Highlights of the quarter included a US$ 50 million order to install a new
high-voltage direct current transmission system between the eastern and western
power grids of the U.S., scheduled to enter commercial operation in October
2003. The division simplified its business structure, reducing the number of
business areas to three.  This sharpened its focus on growing consulting and
field service business, as well as reducing cost overheads.



First quarter orders declined 11 percent due to lower base orders, mainly
because Power Technology Products served progressively more customers via
channel partners. Base orders also declined as a result of the slowdown in the
power generator and substations business. The decline in base orders was partly
offset by higher large orders.



Revenues decreased 7 percent in line with the lower volume of base orders. The
decline was partly offset by increased sales in Utility Automation and Utility
Partner business areas.



EBIT fell 17 percent mainly on lower product sales, although underlying
operational performance actually improved on a like-for-like basis.  EBIT margin
was 3 percent.





Process Industries


US$ in millions, except where       
indicated                           Jan - March 2002  Jan- March 2001           Change            Change
                                                                                                in local
                                                                                              currencies
Orders                                           808            1,055           -  23%             - 19%
Revenues                                         633              775            - 18%             - 15%
EBIT                                              30               35            - 14%             - 12%
EBIT margin                                     4.7%             4.5%



The slowdown in the world economy continued to have a negative impact on
customer demand in the process industries, as many customers reduced or delayed
capital expenditures. Nevertheless, the division established several new
alliances and frame agreements, and has put in place its new service
organization.



Highlights of the first quarter included new product launches, including
ProduceIT ME and Industrial IT for Basic Quality Control, aimed respectively at
the fast-growing pharmaceuticals and Chinese paper machine markets.



Orders decreased 19 percent compared with the first quarter of 2001. This was
largely due to selected customers being served more directly by channel partners
selling ABB's automation and power technology products. Compared with the third
and fourth quarters of 2001, first quarter orders showed double digit increases
- largely driven by strong growth in Paper, Printing, Metals and Minerals.



Reflecting the order downturn in the second half of 2001, first quarter revenues
declined by 15 percent.  Excluding ABB product sales now handled via channel
partners, revenues increased in Marine and Turbocharging and Petroleum, Chemical
and Life Sciences.



First quarter EBIT decreased 12 percent, mainly due to the drop in year-on-year
volumes for Paper, Printing, Metals and Minerals.  EBIT reported by all other
business areas was flat or improved. EBIT margin increased slightly to 4.7
percent as a result of cost-cutting to improve productivity, including a 2
percent reduction in jobs during the first quarter.



Manufacturing and Consumer Industries

US$ in millions, except where       
indicated                           Jan - March 2002  Jan- March 2001           Change            Change
                                                                                                in local
                                                                                              currencies
Orders                                           959            1,337            - 28%             - 25%
Revenues                                         841            1,163            - 28%             - 24%
EBIT                                             - 6               37               NA                NA
EBIT margin                                       NA             3.2%



Despite continued low investment levels in most manufacturing and consumer
industries - electronics, computers, telecoms and automotive - there were
cautious signs of recovery in specific market segments. The building
construction market continued to weaken, particularly in Europe.



First quarter orders dropped 25 percent compared with the same period last year,
with the sharpest decline in Building Systems.  Orders were up 3 percent versus
the fourth quarter, reflecting higher order intake in all business areas except
Logistics Systems



Year-on-year, first quarter revenues were down by 24 percent. The largest
reductions were in Automotive and Building Systems, reflecting both lower order
backlogs and reduced product sales. Lower product sales resulted from the
transfer of smaller customers to more direct supply by ABB's product divisions.



EBIT was a loss of US$ 6 million for the first quarter, mainly due to low
volumes and restructuring costs.



Oil, Gas and Petrochemicals


US$ in millions, except where       
indicated                           Jan - March 2002  Jan- March 2001           Change            Change
                                                                                                in local
                                                                                              currencies
Orders                                           627              961            - 35%             - 34%

Revenues                                         972              769            + 26%             + 29%
EBIT                                              45               41            + 10%             + 10%
EBIT margin                                     4.6%             5.3%



In Upstream markets, oil prices have recently recovered and are again within the
US$ 22 - 28 per barrel OPEC band, mainly as a result of fears over the Middle
East conflict. Higher prices have not resulted in significantly increased
investment, however, as the longer-term outlook remains uncertain.  In
Downstream, low levels of activity have continued into the first quarter of
2002.



Highlights of the quarter included a US$ 165 million contract to expand an
ethylene plant in Poland, as well an important ethylbenzene technology
conversion project with Dow Chemical, a strategic alliance with China Petroleum
& Chemical Corporation, and a maintenance and modification frame agreement with
the Norwegian Statoil company for several of its installations.



Orders decreased 34 percent compared with first quarter 2001, which had a
particularly high order intake. Several large Upstream projects were awarded in
the first quarter, as well as important technology license projects in
Downstream.



First quarter revenues increased 29 percent overall, fed by Upstream's high
order backlog. Downstream revenues also increased, but more modestly given its
lower backlog.



EBIT increased 10 percent compared with first quarter 2001, although EBIT margin
decreased to 4.6 percent.



Power Technology Products

US$ in millions, except where       
indicated                           Jan - March 2002  Jan- March 2001           Change            Change
                                                                                                in local
                                                                                              currencies
Orders                                         1,133            1,105            +  3%              + 7%
Revenues                                         992              855            + 16%             + 21%
EBIT                                              66               64             + 3%              + 6%
EBIT margin                                     6.7%             7.5%



Good demand continued in Asian markets - particularly China - while Europe and
the Americas were mixed. The Middle East and Africa showed increased investment
activity.



First quarter orders increased 7 percent compared with the same period in 2001,
as base orders showed double-digit improvement. Order growth was fuelled by
Power Transformers, while Distribution Transformers showed modest growth and
High-Voltage Technology was negatively impacted by the timing of large orders.
Compared with the fourth quarter of 2001, orders grew by 21 percent on increased
demand and higher product sales across all business areas.



Revenues were up 21 percent for the first quarter of 2002, mainly driven by
double-digit growth in High-Voltage Technology and Power Transformers.  Revenues
increased substantially despite an 8 percent reduction in the division's
workforce since June 2001, indicating good progress in its productivity program.



Despite significantly higher restructuring charges, EBIT increased 6 percent and
EBIT margin declined to 6.7 percent.  Excluding restructuring, EBIT increased by
about 40 percent.



Automation Technology Products

US$ in millions, except where       
indicated                           Jan - March 2002  Jan- March 2001           Change            Change
                                                                                                in local
                                                                                              currencies
Orders                                         1,320            1,419             - 7%              - 3%
Revenues                                       1,221            1,276             - 4%            +/- 0%
EBIT                                              81              112            - 28%             - 25%
EBIT margin                                     6.6%             8.8%



Demand for automation products was weak overall during the first quarter,
although some sectors - for example, robotics and drives - showed the first
signs of recovery from very depressed levels in the second half of 2001. In
particular, U.S. markets remained slow, while Asia - particularly China -
continue to grow.



First quarter orders were down 3 percent compared with the same period in 2001,
with all business areas reporting lower volumes. Compared with the fourth
quarter, order intake showed an 11 percent increase on strong growth in Drives
and Power Electronics and Motors and Machines, with a more modest increase in
Low-Voltage Products. Order intake in Control and Instrumentation as well as
Robotics was slightly down from the fourth quarter of 2001.



Revenues were flat quarter-on-quarter, but declined 7 percent from the fourth
quarter 2001.



EBIT dropped 25 percent compared with the first quarter of 2001 mainly on as a
result of the timing of restructuring charges.  Accordingly, EBIT margin
declined to 6.6 percent.  Compared with the fourth quarter, EBIT increased
sharply due to lower restructuring charges and the first benefits of an 8
percent job reduction during the second half of 2001.



Financial Services


US$ in millions, except where       
indicated                           Jan - March 2002  Jan- March 2001           Change            Change
                                                                                                in local
                                                                                              currencies
Revenues                                         336              479            - 30%             - 27%
EBIT                                              82               84             - 2%              + 3%



General interest rates trended upward, with reduced volatility in foreign
exchange markets.  Insurance premiums were higher than last year, as insurance
companies recouped September 11 losses.



Revenues dropped 27 percent compared with the first quarter of 2001, mainly due
to run-off of the Scandinavian Re portfolio and associated lower premium and
investment income. Treasury Centers also reported lower revenues as a result of
flat trading markets.



First quarter EBIT increased 3 percent, as a good technical result in Insurance
was somewhat offset by lower investment results. Structured Finance reported
strong earnings from Swedish Export Credit (SEK).  Equity Ventures and Treasury
Centers reported moderately lower earnings compared with the same period last
year.



Corporate/Other


US$ in millions, except where indicated                          Jan - March 2002       Jan- March 2001
EBIT                                                                - 95                  - 79

    New Ventures                                                              -21                  - 20
    Corporate R & D                                                           -18                  - 21
    Group Processes                                                           -30                  - 12
    Real estate                                                                12                    18
    Elimination of AFS interest income                                        -36                  - 30
    Other Corporate                                                           -62                  - 15
    Capital Gains                                                              60                     1



For the first quarter, total operating costs from Corporate/Other increased to
US$ 95 million.  Corporate Research and Development costs decreased, mainly due
to the reduction of overlapping projects.  As a result of consolidating
processes across group companies, expenses for Group Processes increased.



Other Corporate mainly includes costs for the corporate functions provided by
group holding companies.  In the first quarter of 2002, it also includes a
non-recurring recovery of a prior period cost of US$ 38 million (net of expected
tax costs), offset by non-recurring costs of US$ 45 million, principally
relating to inventory and land.



Most of the capital gain recorded in the first quarter of 2002 relates to the
divestment of the Air Handling business.



Reporting dates



The remaining quarterly reporting dates in 2002 for ABB Ltd are scheduled for
July 24 and October 24.



The company will host a conference call for analysts and investors to discuss
its first quarter results today at 15:00 Central European Time.  Teleconference
callers should dial [phone] in Europe and [phone] in the U.S.
and Canada. The facility is also available to the media on a 'listen only'
basis.



The 2002 first quarter results release and presentation slides will be available
from the morning of Wednesday, April 24th on the ABB Investor Relations homepage
at www.abb.com/investorrelations.



The audio playback of the conference call will be available for 72 hours
following the conference call on [phone] (Europe) and [phone] in
the U.S. and Canada. The PIN number is 605#.



ABB (www.abb.com) is a global leader in power and automation technologies that
enable utility and industry customers to improve performance while lowering
environmental impact. ABB has 152,000 employees in more than 100 countries.



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.

                                                                        

Media Relations:                             Investor Relations:
ABB Corporate Communications,Zurich          Switzerland: Tel. [phone]
Thomas Schmidt                                 
Tel:  [phone]                        Sweden: Tel. [phone]
Fax: [phone]                         USA: Tel. + 1 203 750 7743
[e-mail]                   [e-mail]



                      This information is provided by RNS
            The company news service from the London Stock Exchange