Interim Results

ABB Ltd
27 July 2006


ABB Q2 orders and profit rise sharply

   • Strong order development continues across most divisions and regions
   • EBIT margin at 10.7 percent on EBIT of $640 million
   • $367 million net income, cash flow from operations at $337 million

Zurich, Switzerland, July 27, 2006 - ABB today reported a sharp increase in
orders and profitability for the second quarter of 2006. Earnings before
interest and taxes (EBIT) increased to $640 million from $371 million in the
same quarter a year ago, reflecting good growth in the two product divisions,
and yielding an EBIT margin of 10.7 percent.

Net income increased to $367 million from $126 million in the same quarter in
2005, and cash flow from operating activities amounted to $337 million, an
increase of $169 million compared to the same quarter in 2005.

'We continued to deliver strong results in the second quarter,' said Fred
Kindle, ABB President and CEO. 'We are clearly benefiting from the strong global
demand for improved power infrastructure and increased industrial efficiency. On
top of that, our efforts to further improve our business performance continue to
pay off and we look forward to a solid second half.'

----------------------                      --------  -------      -------------
                                               Q2 06   Q2 05(1)      Change
2006 Q2 key figures
key figures
----------------------                      --------  -------      -------------
$ millions unless otherwise indicated                              US$    Local
----------------------                      --------  -------  --------- ------
Orders                                       7,279    6,129         19%     18%
----------------------                      --------  -------  ---------  ------
Revenues                                     6,001    5,696          5%      5%
----------------------                      --------  -------  ---------  ------
EBIT                                           640      371         73%
----------------------                      --------  -------  ---------  ------
EBIT margin (%)                               10.7%     6.5%
----------------------                      --------  -------  ---------  ------
Net income                                     367      126
----------------------                      --------  -------  ---------  ------
Net margin (%)                                 6.1%     2.2%
----------------------                      --------  -------  ---------  ------
Basic and diluted net income per share ($)    0.17     0.06
----------------------                      --------  -------  ---------  ------
Cash flow from operating activities            337      168
----------------------                      --------  -------  ---------  ------

1 Adjusted to reflect the reclassification of activities to Discontinued
operations

Summary of results

Group orders received increased 19 percent (local currencies: 18 percent)
compared to the same quarter in 2005. Continuing demand growth in ABB's power
and automation markets resulted in strong order increases in most divisions and
regions - notably a 28-percent increase in Europe (local currencies: 25
percent). Large orders (more than $15 million) made up 13 percent of total
orders in the quarter compared to 7 percent in the same quarter a year earlier.

Revenues in the second quarter grew 5 percent (local currencies: 5 percent)
versus the year-earlier period. The high proportion of large projects in the
order backlog, for which order execution and therefore revenue recognition may
extend over several quarters, accounted for most of the difference between order
and revenue growth. The order backlog at the end of June 2006 amounted to
$15,671 million, an increase of 23 percent (local currencies: 19 percent)
compared to the year before.

The higher EBIT and EBIT margin resulted primarily from higher revenues in the
Power Products and Automation Products divisions, as well as improved project
quality and execution in the Power Systems and Process Automation divisions. The
year-on-year EBIT comparison also reflects the $66 million EBIT reduction in the
2005 period related to the transformer consolidation program.

ABB continued to strengthen its financial position in the second quarter of 2006
following the settlement of ABB's Combustion Engineering asbestos liabilities
and two capital markets transactions (see Appendix I). Gearing at the end of the
quarter was 36 percent compared to 50 percent at the end of the previous
quarter, with a net cash position of $302 million compared to net debt of $427
million at the end of the first quarter of 2006.

Cash flow from operating activities was $337 million, an improvement of
$169 million versus the second quarter of 2005. Cash flow from financing
activities included the payment in May 2006 of a shareholders' dividend of
$203 million for fiscal year 2005.

Finance net(1) amounted to negative $64 million in the second quarter and
included net charges of $43 million associated with the conversion of the
company's previously outstanding $968-million, 4.625-percent convertible bonds,
due in May 2007. This amount will be offset by a corresponding reduction in
interest payments during the remainder of 2006. Included in the prior year
amount were charges of approximately $40 million for non-asbestos-related
litigation issues from the late 1990s.

The effective tax rate in the quarter was 30 percent compared to 37 percent in
the same quarter in 2005, primarily the result of earnings increases in lower
taxed countries.
(1) Finance net is the difference between interest and dividend income and 
interest and other finance expense.

Divisional performance Q2 2006

Power Products division

2006 Q2 key figures                         Q2 06      Q2 05       Change
---------------------                    --------    -------   --------------
$ millions unless otherwise indicated                            US$     Local
---------------------                    --------    -------  -------- --------
Orders                                    2,438      1,900        28%       27%
---------------------                    --------    -------  --------  --------
Revenues                                  1,848      1,589        16%       15%
---------------------                    --------    -------  --------  --------
EBIT                                        244        111       120%
---------------------                    --------    -------  --------  --------
EBIT margin (%)                            13.2%       7.0%
---------------------                    --------    -------  --------  --------
Cash flow from operating activities         160         94
---------------------                    --------    -------  --------  --------

Orders improved in the second quarter in all businesses and regions, primarily
on the strength of higher base orders. Investments continued by utility
customers in western Europe to refurbish existing power infrastructure. In Asia
and the Middle East, customer investments continued to support robust economic
growth. As a result, orders in Europe, Asia and the Middle East rose at a
double-digit pace. Orders in the Americas were modestly higher as continuing
demand in the U.S. to replace aging equipment and meet increasing load
requirements was dampened by lower order intake in Latin America, primarily
Brazil.

Revenues were up in all businesses compared to the same quarter in 2005,
reflecting both volume growth and higher prices to compensate for increased raw
materials costs, primarily in the transformers business. EBIT more than doubled
compared to the second quarter of last year. In addition to the positive impact
of higher volumes, operational improvements and higher capacity utilization, the
EBIT and EBIT margin comparisons reflect the $66 million EBIT reduction in the
year-earlier period related to the transformer consolidation program announced
in June 2005. Costs for the program in the second quarter of 2006 amounted to
$3 million.

Power Systems division

2006 Q2 key figures                           Q2 06    Q2 05       Change
---------------------                      --------  -------   --------------
$ millions unless otherwise indicated                            US$     Local
---------------------                      --------  -------  -------- --------
Orders                                      1,388    1,167        19%       18%
---------------------                      --------  -------  --------  --------
Revenues                                    1,031      999         3%        4%
---------------------                      --------  -------  --------  --------
EBIT                                           62       26       138%
---------------------                      --------  -------  --------  --------
EBIT margin (%)                               6.0%     2.6%
---------------------                      --------  -------  --------  --------
Cash flow from/(used in) operating             31       (4)
activities                      
---------------------                      --------  -------  --------  --------

Orders increased in the second quarter of 2006 across all businesses, primarily
due to a sharp increase in large orders. Orders grew strongest in Europe, as
utilities in western Europe upgraded infrastructure, including power plants and
substations, to increase system efficiency and offset higher energy prices.
Investments in regional grid connections, such as a large order in Italy for an
underwater power transmission link, also drove order growth. Orders in the
Middle East and Africa grew, fueled mainly by the ongoing need for new power
infrastructure. In Asia, orders were flat (higher in local currencies) as higher
orders in India were partly offset by decreases in several other countries,
including China. Orders decreased in the Americas as continued growth in North
America was more than offset by a decrease in Latin America.

Revenues increased versus the same quarter in 2005 but at a slower pace than
orders, reflecting the timing of revenues recorded from large projects in the
order backlog. EBIT and EBIT margin increased significantly, primarily due to
improved project selection and execution, and higher capacity utilization.

Automation Products division

2006 Q2 key figures                        Q2 06       Q2 05       Change
--------------------                    --------   ---------   --------------
$ millions unless otherwise indicated                            US$     Local
--------------------                    --------   ---------  -------- --------
Orders                                   1,957       1,614        21%       21%
--------------------                    --------   ---------  --------  --------
Revenues                                 1,684       1,508        12%       11%
--------------------                    --------   ---------  --------  --------
EBIT                                       262         202        30%
--------------------                    --------   ---------  --------  --------
EBIT margin (%)                           15.6%       13.4%
--------------------                    --------   ---------  --------  --------
Cash flow from operating activities        222         100
--------------------                    --------   ---------  --------  --------

Markets continued to develop favorably in the second quarter of 2006, driving
higher orders received in all businesses and regions. Orders grew strongest in
the power electronics, machines, drives and motors businesses. Regionally,
orders were up in both eastern and western Europe. Orders grew in the Middle
East and Africa, driven primarily by demand from the oil and gas sector. Orders
from Asia were higher, led by India and China, and were up in the Americas, with
growth continuing across most sectors in North America, particularly the U.S.

Revenues increased compared to the same quarter in 2005 due to higher volumes
and price increases covering higher raw materials costs. Revenue growth and high
levels of capacity utilization were the primary drivers of a 30-percent increase
in EBIT and a higher EBIT margin versus the second quarter of 2005. EBIT also
included a $34-million gain on the sale of real estate but it was offset by
charges for downsizing operations in Europe and other operational measures.

Process Automation division

2006 Q2 key figures                        Q2 06       Q2 05       Change
--------------------                    --------   ---------   --------------
$ millions unless otherwise indicated                            US$     Local
--------------------                    --------   ---------  -------- --------
Orders                                   1,682       1,252        34%       32%
--------------------                    --------   ---------  --------  --------
Revenues                                 1,300       1,316        (1%)      (1%)
--------------------                    --------   ---------  --------  --------
EBIT                                       120         104        15%
--------------------                    --------   ---------  --------  --------
EBIT margin (%)                            9.2%        7.9%
--------------------                    --------   ---------  --------  --------
Cash flow from operating activities        178          75
--------------------                    --------   ---------  --------  --------

Demand for automation solutions, both base and large orders, continued to grow
strongly across all sectors and most regions, driven mainly by the need for
greater industrial efficiency in the face of high oil prices. The strongest
growth was recorded in the marine, oil and gas, chemical and pharmaceutical, and
pulp and paper businesses. Regionally, orders increased in Europe, the Americas
and Asia, but were slightly lower in the Middle East and Africa compared to the
same quarter the year before.

Revenues in the quarter were flat versus the second quarter of 2005 despite the
very strong order increase, reflecting the timing of revenue recognition on
project and system orders. Ongoing operational improvements and tighter
execution of large projects resulted in a 15-percent increase in EBIT compared
to the same quarter a year earlier despite the flat revenue development.

Robotics division
2006 Q2 key figures                        Q2 06       Q2 05       Change
--------------------                    --------   ---------   --------------
$ millions unless otherwise indicated                            US$     Local
--------------------                    --------   ---------  -------- --------
Orders                                     268         512       (48%)     (48%)
--------------------                    --------   ---------  --------  --------
Revenues                                   332         423       (22%)     (21%)
--------------------                    --------   ---------  --------  --------
EBIT                                         7          27       (74%)
--------------------                    --------   ---------  --------  --------
EBIT margin (%)                            2.1%        6.4%
--------------------                    --------   ---------  --------  --------
Cash flow from operating activities         43          10
--------------------                    --------   ---------  --------  --------

Orders decreased significantly in the second quarter as weak demand continued in
the automotive market, which accounts for 75-80 percent of the division's
business. Orders grew in the non-automotive general industry sectors, such as
packaging, consumer electronics and food. Orders were lower in all regions.

Revenues were also lower compared to the same quarter in 2005, reflecting the
decreased order backlog. The division continued implementing a series of
operational measures announced in the first quarter of 2006 and, as a result,
recorded related additional costs as well as reserves for a loss order in the
systems business. As a result, EBIT and EBIT margin were sharply lower than in
the same quarter of 2005. The company expects these measures to continue to
impact the division's performance for the full year.

Non-core activities and Corporate

Non-core activities in the second quarter generated EBIT of $17 million versus
an EBIT loss of $7 million in the same quarter in 2005. Headquarters and
stewardship costs decreased to $72 million compared to $92 million in the second
quarter of 2005 as cost reductions continued at both the local and Zurich head
offices.

Asbestos

ABB's Plan of Reorganization for Combustion Engineering (CE), an ABB subsidiary
in the U.S., was confirmed by the U.S. District Court for Delaware on March 1,
2006 and made effective on April 21, 2006. Further details on the impact of this
step on ABB's consolidated financial statements can be found in Appendix I.

On April 21, 2006, ABB also filed a separate asbestos-related pre-packaged Plan
of Reorganization for another U.S. subsidiary, ABB Lummus Global Inc., with a
U.S. Bankruptcy Court. The Lummus Plan was confirmed by the Bankruptcy Court on
June 29 and subsequently affirmed by the District Court on July 21, 2006.
Assuming there are no appeals, the Lummus Plan should become final by the end of
August 2006.

Outlook for the remainder of 2006

ABB's outlook for the remainder of 2006 remains positive. Demand for power
transmission and distribution infrastructure is expected to continue growing in
Asia and the Middle East. Equipment replacement and improved network efficiency
and reliability are forecast to be the key drivers of higher demand in Europe
and North America.

The company expects automation-related industrial investments to continue in
most sectors, notably metals and minerals, marine and oil and gas. Overall,
automation-related demand growth is expected to be strongest in Asia and the
Americas over the rest of the year, with more modest growth in Europe.

While ABB's overall market environment is currently very favorable, business
risks include the impact of price volatility for oil and other commodities on
the global economy and the potential for further political instability in the
Middle East.


More information

The 2006 Q2 results press release and presentation slides are available from
July 27, 2006 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 561,
followed by the # key.


A conference call for analysts and investors is scheduled to begin today at 2:00
p.m. CET (8:00 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 10 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 96 hours. Playback numbers: [phone] (U.S./Canada) or +41
91 612 4330 (Europe and the rest of the world). The code is 494, followed by the
# key.

Investor calendar 2006
-----------------------------                                 ------------------
Q3 2006 results                                                 October 26, 2006
-----------------------------                                 ------------------

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 107,000 people.


Zurich, July 27, 2006
Fred Kindle, CEO


Important notice about forward-looking information

This press release includes forward-looking information and statements including
the section entitled 'Outlook for the remainder of 2006,' 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, 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 and
costs associated with compliance activities, interest rates, fluctuations in
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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