3rd Quarter Results
ABB Ltd
28 October 2004
Steady improvement in profitability
Higher Group EBIT, strong increase in net income and cash flow
• Double-digit growth continues in core division orders and revenues
• Higher EBIT led by 54-percent increase in Automation Technologies
• Power Technologies EBIT lowered by parts of systems business
• Total debt reduced to $5.2 billion, gearing at 61 percent
2004 Q3 key figures
($ in millions) Q3 04 Q3 031,2 Change
Orders Group 4,782 4,373 9%
Power Technologies 2,103 1,853 13%
Automation Technologies 2,750 2,312 19%
Revenues Group 4,796 4,553 5%
Power Technologies 2,142 1,877 14%
Automation Technologies 2,684 2,392 12%
EBIT3 Group 255 230 11%
Power Technologies 110 127 (13%)
Automation Technologies 266 173 54%
Non-core activities (10) 6
Corporate (111) (76)
EBIT margin Group 5.3% 5.1%
Power Technologies 5.1% 6.8%
Automation Technologies 9.9% 7.2%
Loss from discontinued operations (24) (325)
Net income (loss) 98 (283)
Basic net income (loss) per share 0.05 (0.24)
1 Figures for the Group and Power Technologies division have been restated to
correct a previously disclosed overstatement of earnings. For more information,
refer to Note 2 - Restatement for earnings overstatement in an Italian
subsidiary, in the Notes to the summary consolidated financial statements
attached to this press release.
2 Includes reclassification of activities to Discontinued operations in 2003.
3 Earnings before interest and taxes.
Zurich, Switzerland, October 28, 2004 - ABB, the leading power and automation
technology group, today reported a steady improvement in orders and revenues,
earnings before interest and taxes (EBIT) as well as cash flow from operations
in the third quarter of 2004.
Net income amounted to $98 million in the third quarter and $188 million for the
first nine months of 2004, compared to losses of $283 million and $388 million,
respectively, in the same periods of 2003. Cash flow from operating activities
increased to $322 million, up $205 million from the same quarter last year.
'We continue to strengthen our performance,' said Jurgen Dormann, ABB chairman
and CEO. 'We are on track to deliver a positive net income for 2004 and are
confident that we will reach a Group EBIT margin of eight percent in 2005, even
though the Power Technologies division faces challenges to achieve its 2005
margin target.'
The Automation Technologies division turned in a strong performance, reporting a
54-percent increase in EBIT. Power Technologies division EBIT was lower, mainly
due to the remaining underutilization in the power lines business and in other
parts of the systems business.
Summary of third quarter results
Orders received in the core divisions amounted to $4,853 million, up 17 percent
(11 percent in local currencies) in the third quarter of 2004 compared to the
same quarter last year. The improvement was driven by continued growth in base
orders (less than $15 million) in both divisions and a significant increase in
large orders (more than $15 million) in the Automation Technologies division.
Both divisions saw strong order growth in both U.S. dollar and local currency
terms in China, the U.S., Latin America and eastern Europe. Local currency
orders from western Europe were slightly higher in Automation Technologies and
lower in Power Technologies.
Group orders grew 9 percent to $4,782 million compared to the same quarter in
2003 (5 percent higher in local currencies). Orders were sharply lower in
Non-core activities as a result of the divestment of most of the Building
Systems businesses in the third quarter of last year. Excluding the difference
in orders resulting from the Buildings Systems divestment, Group orders were 16
percent higher (12 percent in local currencies).
Base orders (less than $15 million) in the core divisions were up 15 percent (9
percent in local currencies), with increases seen in all regions, led by the
Americas and Asia.
Large orders (more than $15 million) were up by more than a third in the
quarter, led by more than 50-percent growth in the Automation Technologies
division. Large orders in the Power Technologies division were down in the
quarter. Large orders in the core divisions amounted to 10 percent of total core
division orders in the third quarter, compared to 8 percent in the same quarter
in 2003.
The combined order backlog for the core divisions at the end of the third
quarter amounted to $11,322 million, 14 percent higher than at the end of the
same quarter in 2003 (10 percent higher in local currencies). The order backlog
was up 13 percent in the Power Technologies division (8 percent in local
currencies) and 16 percent (11 percent in local currencies) in the Automation
Technologies division. The Group order backlog at the end of the third quarter
was $11,242 million.
Revenues in the core divisions grew a combined 13 percent; 14 percent for the
Power Technologies division (9 percent in local currencies) and 12 percent in
Automation Technologies (6 percent in local currencies) compared to the same
quarter in 2003. The improvement reflects the strong growth in base orders in
recent quarters. Strong double-digit revenue growth was reported by the core
divisions in China, India and eastern Europe.
Group revenues in the third quarter grew 5 percent (flat in local currencies) to
$4,796 million, as higher revenues in the core divisions offset the 70-percent
drop in Non-core revenues resulting from the divestment of most of the Building
Systems business in the third quarter of 2003. Building Systems reported
revenues of $118 million in the third quarter of 2004 compared to $425 million
in the same period in 2003.
Group EBIT in the third quarter increased 11 percent to $255 million from $230
million in the same quarter in 2003. The improvement was driven by a 54-percent
earnings increase in the Automation Technologies division, which more than
offset a 13-percent EBIT decrease in the Power Technologies division. Non-core
activities reduced EBIT by $10 million, while the Corporate result amounted to
an EBIT loss of $111 million in the third quarter.
The Group EBIT margin in the quarter was 5.3 percent compared to 5.1 percent in
the same quarter of 2003. The Power Technologies EBIT margin decreased to 5.1
percent in the quarter from 6.8 percent in the third quarter of 2003, while the
Automation Technologies EBIT margin rose from 7.2 percent to 9.9 percent.
Employees in ABB numbered approximately 103,000 on September 30, 2004 - about
10,000 fewer than at the end of the second quarter of 2004. The reduction was
primarily due to the divestment in July of ABB's upstream oil and gas business,
which employed about 8,000 people, as well as the customary seasonal reduction
in the number of temporary employees.
Finance net(1) was negative $25 million compared to negative $122 million in the
third quarter of 2003. The improvement reflects higher interest income
(resulting from the increase in cash and marketable securities), a decrease in
interest expense (due to the lower debt levels) and the non-recurrence of the
$43-million expense taken in the corresponding 2003 quarter related to the
mark-to-market accounting treatment of the equity option embedded in the $968
million of convertible bonds issued in 2002. The need for this accounting
treatment was eliminated following a meeting of bondholders in May 2004, who
agreed to a change in the terms of the bonds allowing them to be converted into
American Depositary Shares instead of ordinary shares denominated in Swiss
francs. Included in the line Interest and other finance expense in the third
quarter of 2004 was an amortization expense for the discount on the bonds of $7
million.
The net loss in Discontinued operations amounted to $24 million, compared to a
net loss of $325 million in the third quarter of 2003. The improvement was
mainly the result of sharply lower losses in the downstream oil and gas business
compared to the same quarter in 2003, when the business reported significant
project write-downs. A further contribution to the improvement in the quarter
was a decrease of $97 million in expenses related to asbestos, including a
$48-million reduction in the expense on the mark-to-market treatment of the
approximately 30 million ABB shares reserved to cover part of the company's
asbestos liabilities, as well as the non-recurrence of a $41-million provision
taken in the third quarter last year to cover future asbestos payments. (For
more details on Discontinued operations, please refer to page 10).
ABB's net income for the third quarter amounted to $98 million, compared to a
net loss of $283 million for the same period in 2003.
Balance sheet
Cash and marketable securities at the end of September 2004 amounted to $3.6
billion (excluding Discontinued operations), up from $3.4 billion at the end of
June 2004. A cash increase resulting from the approximately $800 million net
cash proceeds on the closure of the sale of the upstream oil and gas business,
plus improved cash flow from operations in the third quarter, were partly offset
by cash outflows to complete the announced tender offer and call of the
outstanding Euro 300 million 5.375-percent bonds (due in June 2005) and the Euro
475 million 5.125-percent bonds (due in January 2006), amounting to
approximately Euro 275 million and Euro 368 million, respectively.
(1) Finance net is the difference between interest and dividend income and
interest and other finance expense.
At the end of September 2004, total debt (defined as total short and long-term
borrowings) was $5.2 billion, compared to $6.1 billion at June 30, 2004, and
$7.9 billion at the end of December 2003.
Gearing, defined as total debt divided by total debt plus shareholders' equity
(including minority interest), amounted to 61 percent at the end of September
compared to 66 percent at the end of June 2004 and 71 percent at the end of
December 2003.
Stockholders' equity at September 30, 2004, was $3,121 million compared to
$2,922 million at the end of June 2004.
Cash flow from operating activities
$ in millions Q3 2004 Q3 20031 Change
Power Technologies 67 81 (14)
Automation Technologies 239 219 20
Non-core activities (24) 9 (33)
Corporate 62 2 60
Oil, Gas and Petrochemicals businesses (22) (194) 172
Total net cash from operating activities 322 117 205
1 Figures for the Group and Power Technologies division have been restated to
correct a previously disclosed overstatement of earnings. For more information,
refer to Note 2 - Restatement for earnings overstatement in an Italian
subsidiary, in the Notes to the summary consolidated financial statements
attached to this press release.
Net cash from operating activities for the Group in the third quarter of 2004
improved by $205 million compared to the year-earlier period, mainly the result
of higher earnings, as well as the impact of the change from lump-sum large
project orders to lower-risk reimbursable orders in the downstream oil and gas
business, which has stabilized the cash flow cycle in that business.
Cash flow from operations in the core divisions developed in line with their
earnings in the quarter - higher in the Automation Technologies division and
lower in the Power Technologies division.
Cash used in Non-core activities amounted to $24 million, related primarily to
the loss in the Building Systems businesses. Corporate generated cash flow of
$62 million in the quarter, mainly from treasury-related operations. Total
asbestos cash outflows amounted to $1 million in the quarter ($56 million in the
same quarter of 2003).
Divestments
As already announced, ABB closed the sale of its upstream oil and gas business
on July 12, 2004, which resulted in net cash proceeds of approximately $800
million (included in Cash from investing activities in the cash flow statement)
and a breakeven result on the transaction. ABB and the buyers of the business
are currently in the process of determining the final sales price, based on the
final adjusted accounts as of the closing date. This is part of a customary
process in such transactions.(2)
-------------------------
(1) Finance net is the difference between interest and dividend income and
interest and other finance expense.
(2) Please refer to Note 3 - Significant Divestitures, in the notes to the
summary consolidated financial statements attached to this press release.
Asbestos
ABB is awaiting the results of a hearing held on June 3, 2004, before the U.S.
3rd Circuit Court of Appeals to review a pre-packaged Chapter 11 protection plan
that was filed in 2003 by a U.S. subsidiary of ABB, Combustion Engineering Inc.
The plan has already been approved by both a federal bankruptcy court and a U.S.
district court and ABB remains confident that the Circuit Court will also
approve the plan.
Board of Directors and Group management
Louis R. Hughes, a member of ABB's Board of Directors, has taken a temporary
leave of absence from the Board to serve the United States government in
Afghanistan. In addition, the company is in the final stages of appointing a new
chief financial officer and plans to make an announcement shortly.
Group outlook
From 2002 through to the end of 2005, ABB expects compound average annual
revenue growth of 4 percent in local currencies. The Power Technologies division
expects compound average annual revenue growth of 5.3 percent in local
currencies. The Automation Technologies division expects compound average annual
revenue growth of 3.3 percent in local currencies.
For 2005, the EBIT margin targets remain unchanged at 8 percent for the Group
and 10.7 percent for the Automation Technologies division. Achieving the
10-percent EBIT margin target in the Power Technologies division depends partly
on the timely resolution of the remaining underutilization in the power lines
business.
The company intends to further reduce total debt to about $4 billion and gearing
to approximately 50 percent by the end of 2005.
Revenue and margin targets exclude major acquisitions, divestitures and business
closures.
Divisional performance Q3 2004
Power Technologies
$ in millions (except where indicated) Q3 2004 Q3 20031, 2 Change
Orders 2,103 1,853 13%
Revenues 2,142 1,877 14%
EBIT 110 127 (13%)
EBIT margin 5.1% 6.8%
Restructuring costs (included in EBIT) (12) (21)
1 Restated to correct a previously disclosed overstatement of earnings. For more
information, refer to Note 2- Restatement for earnings overstatement in an
Italian subsidiary, in the Notes to the summary consolidated financial
statements attached to this press release. 2 Adjusted to reflect the
reclassification of activities to Discontinued operations in 2003 and the move
of substation automation activities from the Automation Technologies division,
effective January 1, 2004.
Orders received in the Power Technologies division rose 13 percent to $2,103
million in the third quarter of 2004 (up 9 percent in local currencies) as the
growth in base orders more than offset lower large orders in the quarter. Local
currency orders were higher in all business areas except Utility Automation
Systems.
Regionally, orders from China again grew strongly, up by more than a third in
both U.S. dollar and local currency terms compared to the third quarter of 2003,
and orders from India more than doubled in both U.S. dollars and local
currencies. Orders in local currency terms were almost 50 percent higher in the
U.S. and grew significantly in eastern Europe. In western Europe, orders were
lower in both U.S. dollars and local currencies. The market remained favorable
in the Middle East and Africa but orders were down from the very high 2003
levels. Orders in Latin America were up.
Orders in the quarter included a $60-million order, announced in October, for
high-voltage switchgear and transformers for the Three Gorges project in China,
and a $24-million order in Algeria to upgrade part of the country's power grid.
Revenues in the quarter were 14 percent higher at $2,142 million (up 9 percent
in local currencies). Revenues were up in all business areas, led by
Transformers, Medium-Voltage Products and High-Voltage Products. Asia and the
Middle East were the main drivers of the revenue improvement.
Third-quarter EBIT decreased to $110 million from $127 million in the same
period in 2003. Higher EBIT in the High-Voltage Products and Transformers
business areas, plus lower restructuring charges than the same period in 2003,
were offset primarily by the remaining underutilization in the power lines
business and in other parts of the systems business. There was an additional
effect from higher raw material costs that could not yet be reflected in higher
prices.
As a result, the division's EBIT margin in the quarter amounted to 5.1 percent
compared to 6.8 percent in the same quarter last year. The EBIT margin before
restructuring was 5.7 percent compared to 7.9 percent in the same quarter last
year.
Cash flow from operations for the division decreased to $67 million in the third
quarter from $81 million in the same quarter of 2003, mainly the result of lower
earnings.
The Power Technologies division announced plans in August to accelerate
profitable growth by streamlining its five business areas into two, organized
around products and systems. The Power Technology Products business area will
incorporate ABB's manufacturing network for power technologies. The Power
Technology Systems business area will offer systems for power transmission and
distribution grids, and for power plants. The changes will take effect as of
January 1, 2005.
Automation Technologies
$ in millions (except where indicated) Q3 2004 Q3 20031 Change
Orders 2,750 2,312 19%
Revenues 2,684 2,392 12%
EBIT 266 173 54%
EBIT margin 9.9% 7.2%
Restructuring costs (included in EBIT) (11) (40)
1 Adjusted to reflect the move of substation automation activities to the Power
Technologies division, effective January 1, 2004
The Automation Technologies division recorded a 19-percent increase in orders
compared to the same quarter last year (up 13 percent in local currencies), with
strong growth in all business areas in both U.S. dollar and local currency
terms.
Order growth was strong across most product businesses, as well as the oil and
gas and marine sectors. Regionally, orders were significantly higher in the
U.S., Latin America, and both eastern and western Europe, all of which showed
strong double-digit local currency growth. Orders continued to grow at a
double-digit pace in China.
Both base and large orders grew in the quarter. Large orders in the quarter
included two contracts valued at a total of $174 million for gas compressor
stations in Poland and Algeria.
Demand for ABB's new System 800xA process control system continued to grow,
including significant recent orders from a large aluminum refinery in Brazil, a
paper company in China, fertilizer manufacturers in Egypt and a water treatment
utility in The Netherlands.
Revenues and EBIT grew for the eighth consecutive quarter. Revenues rose to
$2,684 million, up 12 percent (6 percent in local currencies) compared to the
third quarter of last year. Revenues in U.S. dollars were higher in all business
areas. In local currencies, revenues were higher in Automation Products and
Process Automation, and slightly lower in Manufacturing Automation as the result
of a weak order backlog at the beginning of the year.
Revenues in local currencies in the Americas and western Europe were flat for
the third quarter, and significantly higher in Asia, eastern Europe and the
Middle East and Africa.
EBIT rose 54 percent to $266 million compared to the same quarter in 2003,
driven by double-digit improvements in all business areas. The EBIT margin
reached 9.9 percent from 7.2 percent in the same quarter in 2003. The main
contributors were ongoing productivity improvements, increased product revenues
and a $29-million reduction in restructuring costs. The EBIT margin before
restructuring increased to 10.3 percent in the third quarter of 2004 from 8.9
percent in the same period last year.
Cash flow from operating activities in the quarter amounted to $239 million, up
9 percent, mainly the result of higher earnings.
Non-core activities
EBIT ($ in millions) Q3 2004 Q3 20031
Equity Ventures 9 (1)
Remaining Structured Finance (2) 32
Building Systems (12) 18
New Ventures (7) (17)
Other non-core activities 2 (26)
Total (10) 6
Restructuring costs (included in EBIT) (1) (14)
1 Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003
Non-core activities reported negative EBIT of $10 million in the third quarter
compared to positive EBIT of $6 million in the same period of 2003, driven
primarily by the Building Systems businesses, which reported a negative EBIT of
$12 million compared to a positive EBIT of $18-million in the same period in
2003. The quarterly result in 2003 included a $30-million capital gain on the
sale of the Nordic part of the business. A near break-even EBIT from the German
Building Systems business in the quarter was more than offset by costs
associated with the disposal or winding down of business in some other
countries. Other Non-core activities improved due to the elimination of the
former Group Processes business area.
Corporate
EBIT ($ in millions) Q3 2004 Q3 20031
Headquarters/stewardship (85) (38)
Research and development (23) (27)
Other2 (3) (11)
Total (111) (76)
1 Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003
2 Includes consolidation effects, real estate and Treasury Services
Headquarters and stewardship activities resulted in an EBIT loss of $85 million
in the third quarter, compared to $38 million in the same quarter in 2003, which
included a $65-million capital gain on the divestment of the Nordic Building
Systems business. Adjusted for this effect, the EBIT loss from headquarters was
$18 million less than the same quarter in 2003, as a result of lower corporate
costs. Corporate results will not improve significantly over the remainder of
2004 but are expected to improve gradually through 2005.
Other income (expense), net
EBIT ($ in millions) Q3 2004 Q3 20031
Restructuring (24) (68)
Asset write-downs (16) (14)
Net capital gains 1 141
Income from licenses and equity-accounted companies 28 0
Total (11) 59
1 Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003
Asset write-downs in the quarter were $16 million and included the write-down of
an investment in a venture capital business. Net capital gains were lower in the
quarter, compared to the third quarter of 2003, which included a $95-million
gain on the sale of ABB's Nordic Building Systems business. Income from licenses
and equity-accounted companies increased to $28 million, reflecting primarily
income from the company's Equity Ventures portfolio. In the third quarter of
2003, income from licenses and equity-accounted companies was offset by losses
in the Swedish Export Credit Corporation, in which ABB held a 35-percent stake
that it has since divested.
Discontinued operations
Net income (loss) ($ in millions) Q3 2004 Q3 20031
Reinsurance (1) 53
Asbestos (25) (122)
Oil, Gas and Petrochemicals business (22) (194)
Other 24 (62)
Total net loss (24) (325)
1 Adjusted to reflect the reclassification of activities to Discontinued
operations in 2003
The difference in the Reinsurance result reflects the divestment of this
business in the second quarter of 2004.
Expenses related to asbestos decreased in the quarter, primarily due to a
reduction in the expense from the mark-to-market treatment of the approximately
30 million ABB shares reserved to cover part of the company's asbestos
liabilities. That expense decreased from $67 million in the third quarter of
2003 to $19 million in the same period this year. Additionally, the third
quarter of 2003 included an expense of $41 million relating to a contingent
payment for asbestos.
The oil, gas and petrochemicals result in Discontinued operations for this
quarter includes various items in addition to the result of the remaining
downstream business, such as compliance costs associated with the upstream
business. The divestment of the upstream business, completed in July 2004,
resulted in net cash proceeds of some $800 million and a break-even result on
the transaction. Results for the downstream oil and gas business are presented
in the next section.
The improvement in net income on the line Other in Discontinued operations in
the third quarter was primarily the result of the release of provisions related
to the final settlement during the quarter of the sale of the Structured Finance
business in 2002. The loss in the 2003 quarter included a $24-million charge
ahead of the sale of ABB Export Bank, which has since been divested.
Oil, Gas and Petrochemicals - downstream
($ in millions) Q3 2004 Q3 2003 Change
Orders 247 273 (10%)
Revenues 249 433 (42%)
Net income (loss) (12) (122)
Demand for ethylene technologies in the downstream oil, gas and petrochemicals
business continued to grow in the third quarter. The strategic shift in the
large project business to lower-risk reimbursable contracts rather than large
scope fixed-price contracts, however, resulted in a 10-percent reduction in
orders and 42-percent lower revenues in the third quarter of 2004 compared to
the same period in 2003.
The net loss in the quarter amounted to $12 million compared to a loss of $122
million in the same period in 2003, which included a number of non-cash project
write-offs, including a large petrochemicals project in India and a refinery in
The Netherlands.
Appendix 1
ABB key figures third quarter 2004
$ in millions Q3 2004 Q3 20031,2 % change
Nominal Local
Orders Group 4,782 4,373 9% 5%
Power Technologies 2,103 1,853 13% 9%
Automation Technologies 2,750 2,312 19% 13%
Non-core activities 104 427
Corporate (175) (219)
Revenues Group 4,796 4,553 5% 1%
Power Technologies 2,142 1,877 14% 9%
Automation Technologies 2,684 2,392 12% 6%
Non-core activities 145 490
Corporate (175) (206)
EBIT* Group 255 230 11%
Power Technologies 110 127 (13%)
Automation Technologies 266 173 54%
Non-core activities (10) 6
Corporate (111) (76)
EBIT margin Group 5.3% 5.1%
Power Technologies 5.1% 6.8%
Automation Technologies 9.9% 7.2%
Non-core activities
Corporate
Net income (loss) 98 (283)
ABB key figures first nine months 2004
$ in millions Nine months Nine months % change
2004 20031, 2 Nominal Local
Orders Group 15,690 14,029 12% 5%
Power Technologies 7,225 5,827 24% 17%
Automation Technologies 8,648 7,162 21% 13%
Non-core activities 362 1,928
Corporate (545) (888)
Revenues Group 14,065 13,705 3% (4%)
Power Technologies 6,276 5,569 13% 7%
Automation Technologies 7,891 6,976 13% 5%
Non-core activities 456 2,034
Corporate (558) (874)
EBIT* Group 776 460 69%
Power Technologies 417 413 1%
Automation Technologies 739 519 42%
Non-core activities (21) (110)
Corporate (359) (362)
EBIT margin Group 5.5% 3.4%
Power Technologies 6.6% 7.4%
Automation Technologies 9.4% 7.4%
Non-core activities
Corporate
Net income (loss) 188 (388)
1 Figures for the Group and Power Technologies division have been restated to
correct a previously disclosed overstatement of earnings. For more information,
refer to Note 2 - Restatement for earnings overstatement in an Italian
subsidiary, in the Notes to the summary consolidated financial statements
attached to this press release. 2 Includes reclassification of activities to
Discontinued operations in 2003; * Earnings before interest and taxes. See
Summary Financial Information for more information.
Appendix 2
This appendix presents the restated and unaudited ABB Group consolidated income
statement for each quarter from the first quarter of 2003 until the second
quarter of 2004 to correct for the effect of a previously disclosed
overstatement of earnings (see Note 2 Restatement for earnings overstatement in
an Italian subsidiary, in the Notes to the summary consolidated financial
statements attached to this press release).
ABB Ltd
Summary Consolidated Income Statements
First quarter 2003 to second quarter 2004
.... All amounts are unaudited ....
($ millions)
Q2 04 Q1 04 Q4 03 Q3 03 Q2 03 Q1 03
Revenues 4'910 4'359 5'079 4'553 4'842 4'310
Cost of sales (3'674) (3'211) (3'858) (3'437) (3'559) (3'230)
Gross profit 1'236 1'148 1'221 1'116 1'283 1'080
Selling, general and administrative (932) (904) (903) (934) (1'041) (952)
expenses
Amortization expense (10) (10) (9) (11) (10) (10)
Other income (expense), net (3) (4) (128) 59 (95) (25)
Earnings before interest and taxes 291 230 181 230 137 93
Interest and dividend income 45 31 37 38 29 40
Interest and other finance expense (90) (107) (114) (160) (115) (165)
Income from continuing operations before 246 154 104 108 51 (32)
taxes and minority interest
Provision for taxes (90) (62) (27) (40) (19) 11
Minority interest (26) (15) (26) (26) (19) (11)
Income (loss) from continuing operations 130 77 51 42 13 (32)
Income (loss) from discontinued operations (41) (76) (442) (325) (71) (15)
Net income (loss) 89 1 (391) (283) (58) (47)
More information
The 2004 Q3 results press release and presentation slides are available from
October 28, 2004 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 telephone conference for journalists today starting at 10:00
Central European Time (CET). Callers from the U.K. should dial +44 20 7107 0611.
From Sweden, dial +46 8 5069 2105, and from the rest of Europe, dial +41 91 610
56 00. Lines will be open 15 minutes before the start of the conference. The
audio playback of the conference call will start one hour after the end of the
call and be available for 72 hours. Playback numbers: +44 207 866 4300 (U.K.),
+41 91 612 4330 (rest of Europe) or +1 412 317 0088 (U.S.). The code is 299,
followed by the # key.
A conference call for analysts and investors is scheduled to begin at 14:00 CET.
Callers from the U.S. should dial +1 412 858 4600. Callers from Europe and the
rest of the world should call +41 91 610 5600. Callers are requested to phone in
10 minutes before the start of the conference call. The audio playback of the
conference call will start one hour after the end of the call and be available
for 72 hours. Playback numbers: +1 412 317 0088 (U.S.) or +41 91 612 4330
(Europe and the rest of the world). The code is 116 followed by the # key.
In 2005, the dates for quarterly reports are as follows:
February 17 Q4 and full year 2004 results
April 28 Q1 2005 results
July 28 Q2 2005 results
October 27 Q3 2005 results
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 103,000 people.
Zurich, October 28, 2004
Jurgen Dormann, chairman and CEO
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, ABB's ability to
dispose of certain of its non-core businesses on terms and conditions acceptable
to it, ABB's ability to further reduce its indebtedness as planned, the
resolution of asbestos claims on terms and conditions satisfactory to ABB,
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,
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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