3rd Quarter Results

ABB Ltd
25 October 2007


Q3 net income rises 86% to $738 million

   • Orders up 33%, demand for power and automation technologies strong in
     all regions
   • Revenues grow 26%, EBIT increases 55% to $1 billion
   • EBIT margin 14.4% from continued strong business execution

Zurich, Switzerland, October 25, 2007 - ABB's net income rose 86 percent in the
third quarter to $738 million on continued growth in market demand, particularly
for power infrastructure, and further operational improvements.

Earnings before interest and taxes (EBIT) rose to $1 billion on a 26-percent
increase in revenues (19 percent in local currencies), leading to an EBIT margin
of 14.4 percent compared with 11.8 percent in the same quarter of 2006. Cash
flow from operating activities increased to $886 million versus $523 million in
the third quarter a year ago.

Orders increased 33 percent (25 percent in local currencies) to $8.3 billion,
reflecting investments to expand power infrastructure in emerging markets and to
replace aging equipment and strengthen grids in mature markets. Industrial
businesses also continued to invest in productivity improvements and cost
reductions by lowering energy consumption.

'A combination of strong market growth and operational discipline has once again
paid off,' said Fred Kindle, ABB President and CEO. 'Our market and technology
leadership together with performance improvements are helping us to reap the
full benefits from continuing global growth and heightened concerns about
climate change and energy efficiency.'

                                            
2007 Q3 key figures
key figures                                Q3 07     Q3 061       Change
----------------------                   --------    -------       -------------
$ millions unless otherwise indicated                              US$    Local
----------------------                   --------    -------   --------- ------
Orders                                    8,321      6,280          33%     25%
----------------------                   --------    -------   ---------  ------
Order backlog (end September)            22,170     15,164          46%     33%
----------------------                   --------    -------   ---------  ------
Revenues                                  7,190      5,684          26%     19%
----------------------                   --------    -------   ---------  ------
EBIT                                      1,035        669          55%
----------------------                   --------    -------   ---------  ------
as % of revenues                           14.4       11.8
----------------------                   --------    -------   ---------  ------
Net income                                  738        397          86%
----------------------                   --------    -------   ---------  ------
Basic earnings per share2 ($)              0.32       0.18
----------------------                   --------    -------   ---------  ------
Cash flow from operating activities         886        523          69%
----------------------                   --------    -------   ---------  ------
1Adjusted to reflect the reclassification of activities to discontinued
operations; 2 Net income divided by the weighted average number of shares
outstanding in the period

Summary of results
Orders continued to grow strongly in the third quarter, led by very high demand
for products and systems needed to refurbish and expand power infrastructure.
Demand for more energy-efficient technologies also continued to grow in most
industrial sectors. It was the eleventh consecutive quarter of double-digit
order growth for the group.

Power interconnections in Europe to improve the reliability and efficiency of
existing grids, along with infrastructure expansion in the Middle East, were the
main growth drivers for the power divisions in the third quarter. Asian markets
were also strong as utility customers continued to invest in new power
equipment.

In the automation divisions, customer investments in developed countries during
the third quarter continued to be driven by the need to improve process
efficiency, while in emerging markets, capacity expansion fuelled most growth.
Demand was strongest in the metals and minerals sector, particularly the steel
and aluminum industries. Orders were also higher for products to improve the
energy efficiency of many industrial processes. Orders were lower in the oil and
gas business as the result of fewer large project orders in the quarter compared
to one year ago.

For the Group, the volume of large orders (more than $15 million) grew 96
percent to $1.4 billion (84 percent in local currencies) and accounted for 17
percent of total orders received compared to 12 percent in the same quarter in
2006. Base orders (less than $15 million) increased by 24 percent (17 percent in
local currencies).

Higher revenues in the third quarter reflect both the increase in base orders
during the quarter, as well as execution of the growing order backlog. Price
increases to offset higher raw material costs compared to the same quarter a
year ago, also contributed to the revenue growth. The order backlog amounted to
more than $22 billion at the end of September 2007, compared to $20 billion at
the end of the previous quarter and $15 billion at the end of the same quarter
in 2006.

EBIT increased across all divisions, mainly the result of higher revenues. High
capacity utilization, strong project execution and increased production and
engineering in low cost countries lifted EBIT margins in all divisions except
Process Automation, where it remained stable.

The increase in net income was primarily the result of higher EBIT and a lower
tax rate, mainly reflecting the geographic distribution of earnings and the
accelerated use of tax-loss carry forwards. Net income also benefited from an
improved net finance expense resulting from lower debt levels.

Cash flow from operating activities improved compared to the third quarter of
2006 as higher earnings more than offset increases in working capital to support
growth.

ABB's financial position further improved in the third quarter, with net cash
growing by approximately $1 billion from the end of the previous quarter to $3.3
billion. Gearing at the end of September was 22 percent compared with 25 percent
at the end of the second quarter (see Appendix II for more information). The
remainder of the company's Swiss franc 1-billion convertible bond maturing in
2010 was converted in the third quarter, which increased ABB's equity by
approximately $170 million.

Divestments
In August 2007, ABB announced it had agreed to sell its ABB Lummus Global
business to Chicago Bridge & Iron Company (CB&I) for $950 million, subject to
approvals from regulators and CB&I's shareholders.

As previously reported, ABB discovered in connection with the divestment certain
suspect payments in a number of countries, which it reported to the U.S.
Department of Justice and the Securities and Exchange Commission. ABB retains
liability for related potential fines and penalties.

ABB Lummus Global serves the upstream and downstream oil and gas, petrochemical
and refining industries worldwide and employs about 2,400 people, with revenues
in 2006 of $988 million.


Divisional performance Q3 2007

Power Products division
2007 Q3 key figures                        Q3 07    Q3 061        Change
---------------------                   --------   -------    --------------
$ millions unless otherwise indicated                           US$     Local
---------------------                   --------   -------   -------- --------
Orders                                   2,678     1,934         38%       30%
---------------------                   --------   -------   --------  --------
Order backlog (end September)            6,977     4,948         41%       30%
---------------------                   --------   -------   --------  --------
Revenues                                 2,413     1,815         33%       26%
---------------------                   --------   -------   --------  --------
EBIT                                       405       248         63%
---------------------                   --------   -------   --------  --------
as % of revenues                          16.8%     13.7%
---------------------                   --------   -------   --------  --------
Cash flow from operating activities        271       129
---------------------                   --------   -------   --------  --------
1Adjusted to reflect the reclassification of a transformer business
in South Africa to discontinued operations                            

Third-quarter orders grew in all businesses, led by transformers, and in all
regions. Investments by utility customers in Europe to strengthen and refurbish
grid infrastructure fuelled strong order growth. Orders also grew strongly in
Asia and the Middle East as customers continued to invest in new infrastructure
to support economic growth. Orders continued to grow in the Americas but at a
slower pace than in the previous several quarters as demand eased in the U.S.,
due in part to the slowdown in the housing sector.

Revenues grew at a double-digit pace in all businesses compared to the same
quarter in 2006 on both higher volumes and higher prices to offset increases in
raw materials costs. EBIT and EBIT margin increased strongly as the result of
higher revenues and factory loading and productivity improvements. Costs
associated with the transformer consolidation program announced in 2005 amounted
to $15 million in the third quarter, compared to $5 million in the same quarter
in 2006.

Power Systems division

2007 Q3 key figures                         Q3 07      Q3 06       Change
---------------------                    --------    -------   --------------
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                    1,828      1,050        74%       63%
---------------------                    --------    -------  --------  --------
Order backlog (end September)             8,136      4,898        66%       51%
---------------------                    --------    -------  --------  --------
Revenues                                  1,401      1,072        31%       22%
---------------------                    --------    -------  --------  --------
EBIT                                        121         76        59%
---------------------                    --------    -------  --------  --------
as % of revenues                            8.6%       7.1%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities         151         73
---------------------                    --------    -------  --------  --------

Orders increased strongly in the third quarter, mainly the result of power
infrastructure investments in Europe, including a project in Germany valued at
more than $400-million to connect the world's largest offshore wind farm to the
mainland grid. Base orders increased 25 percent (17 percent in local
currencies), reflecting continued favorable demand. Customer investments in the
Middle East to develop the electricity-intensive aluminum industry also
contributed to the order growth. Orders were lower in the Americas, reflecting
the timing of orders and not a change in demand. Orders in Asia were flat.

Revenues were higher across all businesses versus the same quarter in 2006 on
execution of the strong order backlog. EBIT and EBIT margin increased on higher
revenues, improved capacity utilization and ongoing benefits from improved
project selection and execution.

Automation Products division

2007 Q3 key figures                         Q3 07      Q3 06       Change
---------------------                    --------    -------   ----------------
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                    2,322      1,857        25%       18%
---------------------                    --------    -------  --------  --------
Order backlog (end September)             3,413      2,341        46%       33%
---------------------                    --------    -------  --------  --------
Revenues                                  2,203      1,700        30%       22%
---------------------                    --------    -------  --------  --------
EBIT                                        384        270        42%
---------------------                    --------    -------  --------  --------
as % of revenues                           17.4%      15.9%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities         390        289
---------------------                    --------    -------  --------  --------

Demand continued to grow in the third quarter of 2007 with higher orders for
both standard products and engineered products and systems, including a
$110-million order for an advanced railway power converter system in Germany.
Orders grew across all regions. Demand for energy-efficient industrial products
in a variety of industries also contributed to the order growth.

Revenues increased versus the same quarter in 2006 due to higher volumes
resulting from the continued good order intake and execution of the growing
order backlog. Revenues also grew from price increases necessary to cover higher
raw material costs. EBIT rose on higher revenues while the EBIT margin primarily
reflects strong capacity utilization.

Process Automation division

2007 Q3 key figures                         Q3 07      Q3 06       Change
---------------------                    --------    -------   --------------
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                    1,914      1,828         5%       (2%)
---------------------                    --------    -------  --------  --------
Order backlog (end September)             5,435      4,055        34%       21%
---------------------                    --------    -------  --------  --------
Revenues                                  1,512      1,322        14%        7%
---------------------                    --------    -------  --------  --------
EBIT                                        157        139        13%
---------------------                    --------    -------  --------  --------
as % of revenues                           10.4%      10.5%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities         120        171
---------------------                    --------    -------  --------  --------

Higher orders for process automation solutions in the metals and minerals
sectors were largely offset by lower orders in pulp and paper and a reduction in
large oil and gas orders. Orders were higher in the Americas, driven by the
U.S., Canada and Chile, and almost doubled in Asia, led by China, India, and
South Korea. Orders in Europe decreased mainly as the result of lower orders
from eastern Europe in the quarter. Large orders decreased from last year's very
high level while base orders grew by 14 percent in the quarter (6 percent in
local currencies).

Revenue growth in the quarter mainly reflects the timing of the execution of
system orders. EBIT grew in line with revenues and the EBIT margin remained at a
similar level as a year ago.

Cash flow from operations decreased from a year ago, reflecting the working
capital required to execute large systems orders.

Robotics division

2007 Q3 key figures                         Q3 07      Q3 06       Change
---------------------                    --------    -------   --------------
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                      370        295        25%       19%
---------------------                    --------    -------  --------  --------
Order backlog (end September)               627        465        35%       25%
---------------------                    --------    -------  --------  --------
Revenues                                    344        281        22%       16%
---------------------                    --------    -------  --------  --------
EBIT                                         20          5       300%
---------------------                    --------    -------  --------  --------
as % of revenues                            5.8%       1.8%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities          41          7
---------------------                    --------    -------  --------  --------

Orders increased in the third quarter compared to the low levels of the
year-earlier period, led by higher demand from general industry, such as
packaging, consumer electronics and food. Orders from the automotive industry
remained at low levels reflecting both weak market demand and improved project
selection. Orders were higher in all regions and were strongest for paint
systems.

The significant third-quarter revenue growth reflects the increasing order
backlog that has developed in the past several quarters. EBIT and EBIT margin
improved due to cost-cutting initiatives, better project execution and the
non-recurrence of costs taken in the same quarter last year associated with a
large project.

Cash flow from operating activities was higher, reflecting higher earnings and
customer payments on a large project.

Non-core activities and Corporate

Non-core activities generated EBIT of $12 million in the third quarter,
primarily the result of real estate activities, while Corporate costs continued
to decline.

Strategy 2007 to 2011

On September 5, the company announced its strategy and financial plan for the
period 2007 to 2011. The company aims to achieve a compound annual growth rate
(CAGR) for revenues over the period of between 8 and 11 percent and an EBIT
margin between a minimum of 11 percent and 16 percent. Earnings per share are
expected to grow at a CAGR of 15-20 percent while return on capital employed,
after tax, is forecast to exceed 30 percent by 2011. ABB expects free cash flow
to amount to 100 percent of net income, on average, over the period.

Outlook

The business environment for ABB during the rest of 2007 and into the first half
of 2008 is expected to remain in line with the positive market conditions seen
in the first nine months of this year.

Overall demand for power transmission and distribution infrastructure is
expected to continue on a high level in all regions. Equipment replacement and
improved network efficiency and reliability are forecast to drive higher demand
in Europe and North America. The current slowdown in the U.S. construction
sector may result in some easing of demand in power distribution in the U.S. in
the next several quarters but the impact on the ABB Group is not expected to be
significant.

Automation-related industrial investments are expected to continue at a high
level in most sectors, although below the growth rates seen in 2006. Overall,
automation-related demand growth is expected to be strongest in Asia, with more
modest growth in Europe and the Americas.

The company expects a further significant decline in the tax rate in the fourth
quarter of 2007 as it expects to recognize additional deferred tax assets for
tax-loss carry forwards. The mid-term guidance for a sustainable 27-percent tax
rate, however, remains unchanged.

ABB is well-positioned to benefit from increasing customer investments to reduce
costs and mitigate climate change by using more energy-efficient products and
systems.


For the full press release, including appendix, please visit our website at www.abb.com


More information

The 2007 Q3 results press release and presentation slides are available from
October 25, 2007 on the ABB News Center at www.abb.com/news and on the Investor
Relations homepage at www.abb.com/investorrelations.

ABB will host a media call today starting at 10:00 a.m. Central European Time
(CET). U.K. callers should dial [phone]; from Sweden, [phone];
from the U.S. and Canada [phone]; and from the rest of Europe, +41 91
610 56 00. Lines will be open 15 minutes before the start of the conference.
Audio playback of the call will start one hour after the call ends and will be
available for 72 hours: Playback numbers: [phone] (U.K.), +41 91 612
4330 (rest of Europe) or [phone] (U.S./Canada). The code is 339,
followed by the # key.

A conference call for analysts and investors is scheduled to begin today at 3:00
p.m. CET (9:00 a.m. EDT). Callers should dial [phone] (from the U.S./
Canada) or [phone] (Europe and the rest of the world). Callers are
requested to phone in 15 minutes before the start of the call. The audio
playback of the call will start one hour after the end of the call and be
available for two weeks. Playback numbers: [phone] (U.S./Canada) or +41
91 612 4330 (Europe and the rest of the world). The code is 245, followed by the
# key.

Investor calendar 2008
-----------------------------                                 ------------------
Q4 and full-year 2007 results                                       February 14,
-----------------------------                                               2008
                                                              ------------------
Q1 2008 results                                                   April 24, 2008
-----------------------------                                 ------------------
Annual General Meeting                                               May 8, 2008
-----------------------------                                 ------------------
Q2 2008 results                                                    July 24, 2008
-----------------------------                                 ------------------
Q3 2008 results                                                      October 23,
-----------------------------                                               2008
                                                              ------------------

ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 112,000 people.

Zurich, October 25, 2007

Fred Kindle, CEO


Important notice about forward-looking information

This press release includes forward-looking information and statements including
the sections entitled 'Strategy 2007 to 2011,' 'Outlook' and Appendix I, as well
as other statements concerning the outlook for our business. These statements
are based on current expectations, estimates and projections about the factors
that may affect our future performance, including global economic conditions,
the economic conditions of the regions and industries that are major markets for
ABB Ltd. These expectations, estimates and projections are generally
identifiable by statements containing words such as 'expects,' 'believes,'
'estimates,' 'targets,' 'plans' or similar expressions. However, there are many
risks and uncertainties, many of which are beyond our control, that could cause
our actual results to differ materially from the forward-looking information and
statements made in this press release and which could affect our ability to
achieve any or all of our stated targets. The important factors that could cause
such differences include, among others, costs associated with compliance
activities, the amount of revenues we are able to generate from backlog and
orders received, raw materials prices, market acceptance of new products and
services, changes in governmental regulations, fluctuations in interest rates
and currency exchange rates and such other factors as may be discussed from time
to time in ABB Ltd's filings with the U.S. Securities and Exchange Commission,
including its Annual Reports on Form 20-F. Although ABB Ltd believes that its
expectations reflected in any such forward-looking statement are based upon
reasonable assumptions, it can give no assurance that those expectations will be
achieved.






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