UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2010
Commission File Number 001-16429
ABB Ltd
(Translation of registrants name into English)
P.O. Box 1831, Affolternstrasse 44, CH-8050, Zurich, Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x |
Form 40-F o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indication by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o |
No x |
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
This Form 6-K consists of the following:
1. Press release issued by ABB Ltd dated February 18, 2010.
2. Announcements regarding transactions in ABB Ltds securities made by the directors or members of the Executive Committee.
The information provided by Item I above is deemed filed for all purposes under the Securities Exchange Act of 1934, including by reference in the Registration Statement on Form S-8 (Registration No. 333-129271).
Press Release |
|
· Fast cost take-out keeps full-year EBIT margin well within target range 2-year savings program expanded to $3 billion
· Pace of base order decline year-on-year slows in Q4, stabilizes versus Q3 2009
· Q4 net income was $540 million after approx. $350 million of restructuring-related expense
· Record cash from operations for Q4 of $1.8 billion
· Proposal to increase dividend 6 percent to CHF 0.51 per share
Zurich, Switzerland, Feb. 18, 2010 ABB reported earnings before interest and taxes (EBIT) of almost $800 million in the quarter, despite approximately $350 million in restructuring-related charges. Full-year profitability was well within the companys EBIT margin target range of 11-16 percent on a combination of rapid cost take-out and solid operational execution.
Combined with record cash from operations and double-digit order growth from emerging markets, the results show the resilience of ABBs business portfolio and geographic scope, as well as our ability to execute in a tough market environment, said Chief Executive Officer Joe Hogan.
Orders declined to $7.5 billion, equivalent to a local-currency reduction of 5 percent(1) as lower demand mainly in mature markets outweighed continued growth in emerging markets in both power infrastructure and industrial equipment. Orders stabilized compared with third-quarter 2009 levels.
Revenues for the quarter were $8.8 billion, down 12 percent in local currency but the second-highest level of revenues in a quarter. Cost savings amounted to more than $500 million in the quarter.
Net income amounted to $540 million and cash flow from operations reached a record $1.8 billion, mainly the result of lower inventories and efforts to improve customer collections.
By acting quickly and decisively, we delivered a 2009 result well within our profitability target, despite the worst recession in memory, said CEO Hogan. We are in a stronger position today than we were a year ago and have successfully positioned ourselves for growth as the economy recovers.
Were encouraged that the year-on-year rate of order decline slowed in the fourth quarter and that base orders were slightly higher than the third quarter of 2009, Hogan said. Well continue to aggressively pursue growth in emerging markets and opportunities globally to improve industrial productivity, lower energy consumption and tackle climate change. At the same time, cost will remain a key focus. We have therefore expanded our cost savings target to $3 billion to ensure we remain within our profitability target.
2009 Q4 and full-year key figures
|
|
|
|
|
|
Change |
|
|
|
|
|
Change |
|
||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
FY 2009 |
|
FY 2008 |
|
US$ |
|
Local |
|
Orders |
|
7,450 |
|
7,183 |
|
4 |
% |
-5 |
% |
30,969 |
|
38,282 |
|
-19 |
% |
-13 |
% |
Order backlog (end Dec) |
|
24,771 |
|
23,837 |
|
4 |
% |
-1 |
% |
|
|
|
|
|
|
|
|
Revenues |
|
8,761 |
|
9,140 |
|
-4 |
% |
-12 |
% |
31,795 |
|
34,912 |
|
-9 |
% |
-4 |
% |
EBIT |
|
798 |
|
459 |
|
74 |
% |
|
|
4,126 |
|
4,552 |
|
-9 |
% |
|
|
as % of revenues |
|
9.1 |
% |
5.0 |
% |
|
|
|
|
13.0 |
% |
13.0 |
% |
|
|
|
|
Net income |
|
540 |
|
213 |
|
154 |
% |
|
|
2,901 |
|
3,118 |
|
-7 |
% |
|
|
Basic net income per share ($) |
|
0.24 |
|
0.09 |
|
|
|
|
|
1.27 |
|
1.36 |
|
|
|
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|
Dividend per share (CHF)* |
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|
|
|
|
|
|
|
|
0.51 |
|
0.48 |
|
6 |
% |
|
|
Cash flow from operations |
|
1,783 |
|
1,395 |
|
|
|
|
|
4,027 |
|
3,958 |
|
|
|
|
|
Free cash flow |
|
|
|
|
|
|
|
|
|
3,089 |
|
2,888 |
|
|
|
|
|
As % of net income |
|
|
|
|
|
|
|
|
|
106 |
% |
93 |
% |
|
|
|
|
Return on capital employed |
|
|
|
|
|
|
|
|
|
27 |
% |
31 |
% |
|
|
|
|
* Proposed by the Board of Directors
(1) Management discussion of orders and revenues focuses on local currency changes. U.S. dollar changes are reported in the results tables.
Fourth-quarter orders decreased 5 percent compared to the same quarter in 2008 (increased 4% in US$ terms) as continued weak demand from most of ABBs industrial markets outweighed customer investments in power transmission systems and equipment. Orders received were supported by a 61-percent increase in large orders (above $15 million) to $1.4 billion (up 79% in US$). Large orders accounted for 19 percent of total orders received, compared with 11 percent in the same period a year earlier. Base orders (below $15 million) declined by 13 percent in the quarter (down 5% in US$) following two consecutive quarters of more than 20-percent decreases. Base orders were 2 percent higher in local currencies (5 percent higher in US$) compared to the third quarter of 2009.
Regionally, orders in local currencies were higher versus the fourth quarter of 2008 in Asia and the Middle East and Africa as investments continued in power grid expansion in the emerging markets. Demand for industrial products also increased in both regions. In Europe and the Americas, continued weak demand in most of the companys end markets resulted in lower orders in both the power and automation businesses. Orders from emerging markets accounted for 51 percent of total orders received and grew 15 percent in the fourth quarter compared with an order decrease in mature economies of almost 20 percent.
Revenues declined as weaker revenues in shorter-cycle businesses offset execution of the order backlog, reflecting the weaker business environment in recent quarters. Service revenues were 2 percent lower (up 7 percent in US$) compared with the fourth quarter of 2008.
The order backlog at the end of December 2009 amounted to $24.8 billion, a local-currency decrease of 1 percent compared with the end of 2008 (up 4 percent in US$) and down 5 percent in both local currencies and U.S. dollars compared to the end of the previous quarter.
EBIT and EBIT margin increased compared with the same quarter a year earlier. EBIT in the fourth quarter of 2009 included restructuring-related costs of approximately $350 million associated with the two-year, $2-billion cost take-out program announced a year ago (costs for the full year amounted to approximately $520 million). In addition, EBIT in the fourth quarter of 2008 included approximately $870 million in provisions related to compliance investigations, a value-added tax charge and restructuring-related charges.
Excluding the impact of restructuring-related costs and the mark-to-market valuation of hedging transactions, the EBIT margin in the fourth quarter of 2009 was 13.2 percent, a decline of 1.5 percentage points compared to the EBIT margin in the same quarter in 2008 after adjustment for restructuring-related charges, the mark-to-market valuation of hedging transactions and other previously-announced provision adjustments.
This decrease primarily reflects the impacts of price erosion and lower capacity utilization.
EBIT and EBIT margin were positively impacted by cost savings amounting to more than $500 million in the quarter. In the full year, the cost take-out program generated savings in excess of $1.5 billion.
Fourth-quarter net income amounted to $540 million. The tax rate for the full year was 24 percent, mainly the result of the favorable tax impact from the adjustment of provisions in the third quarter of 2009.
Net cash at the end of the fourth quarter was $7.2 billion compared with $5.8 billion at the end of the previous quarter. Cash flow from operations amounted to a record $1.8 billion, an increase of approximately $400 million compared with the same quarter in 2008, mainly the result of improved working capital management, especially improved cash collection and lower inventories.
ABBs Board of Directors proposes a dividend for 2009 of 0.51 Swiss francs per share, an increase of 0.03 Swiss francs per share, or 6 percent, compared to the prior year. The Board also proposes that the dividend takes the form of a reduction in the nominal (par) value of the shares from 1.54 Swiss francs to 1.03 Swiss francs. The proposal is subject to approval by shareholders at the companys annual general meeting on April 26, 2010. If approved, the ex-dividend and payout date in Switzerland is expected in July 2010.
ABB is not actively pursuing purchases under the 2.2-billion Swiss-franc share buyback program announced in 2008. The company has so far spent approximately 650 million Swiss francs on the program, which has not been active since September 2008. At the 2010 annual general meeting, the company intends to propose the cancellation of the shares repurchased under the program.
Cost reductions
ABB continued to execute its cost take-out program during the fourth quarter. The company has also decided to increase the savings target to ensure it can maintain its EBIT margin within its target range of 11-16 percent. The program now aims to sustainably reduce ABBs costs comprising both cost of sales as well as general and administrative expenses from 2008 levels by a total of $3 billion by the end of 2010, compared with the previously announced level of $2 billion. The savings are focused on low-cost sourcing, reduced general and administrative expenses, internal process improvements and adjustments to ABBs global manufacturing and engineering footprint.
Cost reductions for the full year 2009 were significantly ahead of plan and exceeded $1.5 billion. Approximately 50 percent of these savings were achieved by optimizing global sourcing (excluding changes in commodity prices). The remainder was achieved through reductions to general and administrative expenses, as well as global footprint and operational excellence measures.
As previously announced, ABB has disclosed to the US Department of Justice and the US Securities and Exchange Commission various suspect payments.
Also as previously announced, ABB has been cooperating with various antitrust authorities, including the European Commission, regarding their investigations into certain alleged anti-competitive practices in the power transformer business, the cables business and the flexible alternating current transmission systems (FACTS) business. In October 2009, the European Commission announced its decision regarding anti-competitive practices in the power transformer business and imposed a fine of approximately 34 million on ABB.
With respect to these matters, there could be adverse outcomes beyond our provisions.
In the fourth quarter ABB announced a reorganization of its automation divisions to align them more closely with customers. Under the announced changes, effective Jan. 1, 2010, the business units in
the Automation Products and Robotics divisions have been regrouped into two new divisions Discrete Automation and Motion, and Low Voltage Products. The Process Automation division remains unchanged except for the addition of the instrumentation business from the Automation Products division (preliminary orders, revenues and EBIT for the new automation divisions for the full years 2007, 2008 and 2009 are available in Appendix I to this press release).
As part of the reorganization, Tom Sjökvist, previously responsible for Automation Products, now heads the new Low Voltage Products division. Ulrich Spiesshofer, previously responsible for Corporate Development on the Executive Committee, takes over the Discrete Automation and Motion division. Anders Jonsson, previously responsible for the Robotics division, remains on the Executive Committee with responsibility for continuing the implementation of ABBs current cost take-out program as well as the companys Global Footprint program. Veli-Matti Reinikkala remains head of the Process Automation division.
ABBs fourth-quarter orders stabilized versus the third quarter of 2009. ABB has seen what it believes is a bottoming of its short cycle businesses. However, given the longer-term nature of the ABB portfolio, managements outlook for the companys businesses for 2010 and the overall economy remains uncertain.
The drivers of ABBs businesses, fueled mainly by the need to build and upgrade energy infrastructure, address climate change and the increasing importance of emerging markets in the global economy, continue to offer attractive growth opportunities.
The need for more efficient and reliable power transmission and distribution and the integration of renewable energies into existing power grids remains in all regions. As energy and commodity prices increase, and as globalization promotes more competition, industrial customers in all parts of the world require automation solutions for new capacity and to lower costs, improve quality and increase the productivity of their existing assets.
The recent global economic downturn, however, has resulted in overcapacity in some customer sectors and has reduced the amount of capital available for investment in others. It remains unclear at this time when and how quickly customer investments in these sectors will recover.
As a result of these factors, management will maintain a cautious outlook for 2010 until there is a clearer view of the overall direction of the global economy.
Therefore, in 2010 management will focus both on adjusting costs and taking advantage of its global footprint, strong balance sheet and leading technologies to tap further opportunities for profitable growth.
ABB remains confident that it can continue to achieve a Group full-year EBIT margin within its target corridor of 11-16 percent of revenues. The company also reiterates its commitment to the divisional EBIT margin targets (following the realignment of the automation divisions announced in November 2009, the respective original divisional targets have been recalculated and are presented in Appendix I to this press release).
ABB also confirms its target for free cash flow as a percentage of net income at an average 100 percent over the period 2007-11.
The ability of the company to achieve the remaining targets revenue and earnings per share growth and return on capital employed is contingent on the pace of economic recovery in 2010 and 2011.
Divisional performance Q4 2009
Power Products
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Change |
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Change |
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||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
FY 2009 |
|
FY 2008 |
|
US$ |
|
Local |
|
Orders |
|
2,667 |
|
2,615 |
|
2 |
% |
-5 |
% |
10,940 |
|
13,627 |
|
-20 |
% |
-14 |
% |
Order backlog (end Dec) |
|
8,226 |
|
7,977 |
|
3 |
% |
-2 |
% |
|
|
|
|
|
|
|
|
Revenues |
|
3,109 |
|
3,208 |
|
-3 |
% |
-9 |
% |
11,239 |
|
11,890 |
|
-5 |
% |
-1 |
% |
EBIT |
|
495 |
|
444 |
|
11 |
% |
|
|
1,969 |
|
2,100 |
|
-6 |
% |
|
|
as % of revenues |
|
15.9 |
% |
13.8 |
% |
|
|
|
|
17.5 |
% |
17.7 |
% |
|
|
|
|
Cash flow from operating activities |
|
754 |
|
578 |
|
|
|
|
|
1,977 |
|
1,575 |
|
|
|
|
|
Orders received decreased in the fourth quarter (up 2 percent in US$) as lower demand in mature economies offset higher power infrastructure investments in emerging markets. Orders increased 3 percent in Asia (9 percent in US$) and were 24 percent higher in the Middle East and Africa (up 37 percent in US$). In Europe, orders were stable compared with the same quarter in 2008 (up 8 percent in US$) as a strong increase in eastern Europe compensated a decline in western Europe. Weakened demand from both the utility and industrial sectors in the U.S. resulted in an order decline of 25 percent for the Americas (21% in US$). The decrease in orders also reflects lower prices from weaker market conditions and pass-through of reduced commodity costs.
The division reported the second-highest level of revenues ever in the quarter, down from the record achieved in the fourth quarter a year earlier. Lower revenues from shorter-cycle businesses related to the industrial and construction sectors, such as medium-voltage equipment and distribution transformers, were partly offset by higher revenues from longer-cycle businesses, such as large power transformers.
EBIT in the quarter included restructuring-related costs of $39 million. The EBIT margin in the quarter was positively impacted by a favorable product revenue mix.
Power Systems
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|
Change |
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|
|
Change |
|
||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
FY 2009 |
|
FY 2008 |
|
US$ |
|
Local |
|
Orders |
|
1,863 |
|
1,456 |
|
28 |
% |
16 |
% |
7,830 |
|
7,408 |
|
6 |
% |
17 |
% |
Order backlog (end Dec) |
|
9,675 |
|
7,704 |
|
26 |
% |
20 |
% |
|
|
|
|
|
|
|
|
Revenues |
|
1,908 |
|
1,902 |
|
0 |
% |
-7 |
% |
6,549 |
|
6,912 |
|
-5 |
% |
1 |
% |
EBIT |
|
66 |
|
181 |
|
-64 |
% |
|
|
388 |
|
592 |
|
-34 |
% |
|
|
as % of revenues |
|
3.5 |
% |
9.5 |
% |
|
|
|
|
5.9 |
% |
8.6 |
% |
|
|
|
|
Cash flow from operating activities |
|
242 |
|
98 |
|
|
|
|
|
333 |
|
424 |
|
|
|
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|
Fourth-quarter orders grew strongly and contributed to a record annual order intake for the division. The growth was largely driven by continued emerging market investment in power generation and transmission capacity as well as related grid enhancements. Large orders for substations and rail-related power infrastructure in India and the power infrastructure build-up in the Middle East accounted for a significant share of the growth. This more than offset the lower quarterly order intake in Europe and the Americas, mainly resulting from reduced investments in the industrial and power distribution sectors.
Revenues were driven mainly by the order backlog execution schedule and decreased during the quarter in local currencies. The revenue development also reflected the lower level of base orders during the year. EBIT and EBIT margin were negatively impacted by $76 million in restructuring-related charges aimed primarily at adjusting capacity in specific geographic markets.
Automation Products
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|
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Change |
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|
|
Change |
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||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
FY 2009 |
|
FY 2008 |
|
US$ |
|
Local |
|
Orders |
|
2,061 |
|
2,094 |
|
-2 |
% |
-10 |
% |
8,453 |
|
10,872 |
|
-22 |
% |
-18 |
% |
Order backlog (end Dec) |
|
3,557 |
|
3,863 |
|
-8 |
% |
-12 |
% |
|
|
|
|
|
|
|
|
Revenues |
|
2,448 |
|
2,484 |
|
-1 |
% |
-10 |
% |
8,930 |
|
10,250 |
|
-13 |
% |
-9 |
% |
EBIT |
|
351 |
|
422 |
|
-17 |
% |
|
|
1,330 |
|
1,908 |
|
-30 |
% |
|
|
as % of revenues |
|
14.3 |
% |
17.0 |
% |
|
|
|
|
14.9 |
% |
18.6 |
% |
|
|
|
|
Cash flow from operating activities |
|
537 |
|
299 |
|
|
|
|
|
1,525 |
|
1,343 |
|
|
|
|
|
Order growth across most businesses in China, India, the Middle East and other emerging markets, driven by increasing industrial production in those areas, was offset by lower orders in Europe and the Americas, reflecting the more uncertain economic environment in the mature economies. Base orders declined by 6 percent in local currencies but orders for low-voltage standard products grew. Orders were negatively impacted by lower prices resulting from a decrease in material costs as well as reduced demand.
Revenues declined in the quarter as execution of the order backlog in businesses such as power electronics only partly compensated lower revenues in motors, drives and low-voltage systems.
EBIT declined on lower revenues and restructuring-related costs of $66 million to adjust production capacity and optimize the manufacturing footprint in response to the changing demand environment.
Process Automation
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|
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|
|
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Change |
|
|
|
|
|
Change |
|
||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
FY 2009 |
|
FY 2008 |
|
US$ |
|
Local |
|
Orders |
|
1,288 |
|
1,452 |
|
-11 |
% |
-20 |
% |
6,200 |
|
8,657 |
|
-28 |
% |
-22 |
% |
Order backlog (end Dec) |
|
5,412 |
|
6,111 |
|
-11 |
% |
-17 |
% |
|
|
|
|
|
|
|
|
Revenues |
|
1,908 |
|
2,088 |
|
-9 |
% |
-17 |
% |
7,347 |
|
7,815 |
|
-6 |
% |
-1 |
% |
EBIT |
|
199 |
|
240 |
|
-17 |
% |
|
|
685 |
|
926 |
|
-26 |
% |
|
|
as % of revenues |
|
10.4 |
% |
11.5 |
% |
|
|
|
|
9.3 |
% |
11.8 |
% |
|
|
|
|
Cash flow from operating activities |
|
303 |
|
282 |
|
|
|
|
|
671 |
|
1,034 |
|
|
|
|
|
Orders decreased in the quarter as project delays in the marine and minerals sectors offset continued growth in oil and gas and an improvement in metals. After-sales service orders in the marine and minerals industries also grew in the quarter. Total orders were down in all regions in local currencies.
Revenues were lower than the record fourth quarter a year ago as the decrease in orders that began in late 2008 especially in pulp and paper, metals, minerals and marine flowed through to revenues. Service revenues, which typically account for about a third of total revenues, were unchanged in local currencies.
EBIT reflects lower revenues and includes restructuring-related charges of $50 million. Excluding these factors, the EBIT margin was above the level in the same quarter a year earlier due to improved project execution, the increasing benefit from cost reduction efforts and stable service revenues.
Robotics
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|
|
|
|
|
Change |
|
|
|
|
|
Change |
|
||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
FY 2009 |
|
FY 2008 |
|
US$ |
|
Local |
|
Orders |
|
201 |
|
299 |
|
-33 |
% |
-38 |
% |
758 |
|
1,658 |
|
-54 |
% |
-51 |
% |
Order backlog (end Dec) |
|
331 |
|
545 |
|
-39 |
% |
-42 |
% |
|
|
|
|
|
|
|
|
Revenues |
|
231 |
|
407 |
|
-43 |
% |
-47 |
% |
970 |
|
1,642 |
|
-41 |
% |
-38 |
% |
EBIT |
|
-188 |
|
-73 |
|
|
|
|
|
-296 |
|
9 |
|
|
|
|
|
as % of revenues |
|
-81.4 |
% |
-17.9 |
% |
|
|
|
|
-30.5 |
% |
0.5 |
% |
|
|
|
|
Cash flow from operating activities |
|
10 |
|
18 |
|
|
|
|
|
-90 |
|
49 |
|
|
|
|
|
Robotics orders declined as the steep drop in demand from the global discrete manufacturing sector continued in the fourth quarter. Revenues decreased on a lower opening order backlog and reduced service business.
The division reported an EBIT loss mainly related to changes in its operational footprint and further capacity adjustments in mature markets. Restructuring-related costs in the quarter amounted to $109 million.
More information
The 2009 Q4 results press release and presentation slides are available 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 press conference today starting at 10:00 a.m. Central European Time (CET). U.K. callers should dial +44 207 107 06 11. From Sweden, the number is +46 8 5069 2105, 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 96 hours: Playback numbers: +44 20 7108 6233 (U.K.), +41 91 612 4330 (rest of Europe) or +1 866 416 2558 (U.S./Canada). The code is 19750, followed by the # key.
A meeting for analysts and investors is scheduled to begin today at 2:00 p.m. CET (8:00 a.m. EST). Callers should dial +1 412 858 4600 (from the U.S./Canada), +44 207 107 0611 (from the U.K.), or +41 91 610 56 00 (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 24 hours. Playback numbers: +1 866 416 2558 (U.S./Canada) or +41 91 612 4330 (Europe and the rest of the world). The code is 13806, followed by the # key.
Investor calendar 2010 |
|
|
Q1 2010 results |
|
April 22, 2010 |
Annual General Meeting of shareholders |
|
April 26, 2010 |
Q2 2010 results |
|
July 22, 2010 |
Q3 2010 results |
|
Oct. 28, 2010 |
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 117,000 people.
Zurich, Feb. 18, 2010
Joe Hogan, CEO
Important notice about forward-looking information
This press release includes forward-looking information and statements including the sections entitled Increased dividend, Cost reductions, Compliance, Outlook and Update on 2007-11 targets, 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, business risks related to the financial crisis and economic slowdown, 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 and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltds 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.
For more information please contact:
Media Relations: |
Investor Relations: |
ABB Ltd |
Thomas Schmidt, Wolfram Eberhardt |
Switzerland: Tel. +41 43 317 7111 |
Affolternstrasse 44 |
(Zurich, Switzerland) |
Sweden: Tel. +46 21 325 000 |
CH-8050 Zurich, Switzerland |
Tel: +41 43 317 6568 |
USA: Tel. +1 203 750 7743 |
|
media.relations@ch.abb.com |
investor.relations@ch.abb.com |
|
ABB Q4 and full-year 2009 key figures
|
|
|
|
|
|
Change |
|
|
|
|
|
Change |
|
||||||
$ millions unless otherwise indicated |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
2009 |
|
2008 |
|
US$ |
|
Local |
|
||
Orders |
|
Group |
|
7,450 |
|
7,183 |
|
4 |
% |
-5 |
% |
30,969 |
|
38,282 |
|
-19 |
% |
-13 |
% |
|
|
Power Products |
|
2,667 |
|
2,615 |
|
2 |
% |
-5 |
% |
10,940 |
|
13,627 |
|
-20 |
% |
-14 |
% |
|
|
Power Systems |
|
1,863 |
|
1,456 |
|
28 |
% |
16 |
% |
7,830 |
|
7,408 |
|
6 |
% |
17 |
% |
|
|
Automation Products |
|
2,061 |
|
2,094 |
|
-2 |
% |
-10 |
% |
8,453 |
|
10,872 |
|
-22 |
% |
-18 |
% |
|
|
Process Automation |
|
1,288 |
|
1,452 |
|
-11 |
% |
-20 |
% |
6,200 |
|
8,657 |
|
-28 |
% |
-22 |
% |
|
|
Robotics |
|
201 |
|
299 |
|
-33 |
% |
-38 |
% |
758 |
|
1,658 |
|
-54 |
% |
-51 |
% |
|
|
Corporate (consolidation) |
|
-630 |
|
-733 |
|
14 |
% |
23 |
% |
-3,212 |
|
-3,940 |
|
18 |
% |
11 |
% |
Revenues |
|
Group |
|
8,761 |
|
9,140 |
|
-4 |
% |
-12 |
% |
31,795 |
|
34,912 |
|
-9 |
% |
-4 |
% |
|
|
Power Products |
|
3,109 |
|
3,208 |
|
-3 |
% |
-9 |
% |
11,239 |
|
11,890 |
|
-5 |
% |
-1 |
% |
|
|
Power Systems |
|
1,908 |
|
1,902 |
|
0 |
% |
-7 |
% |
6,549 |
|
6,912 |
|
-5 |
% |
1 |
% |
|
|
Automation Products |
|
2,448 |
|
2,484 |
|
-1 |
% |
-10 |
% |
8,930 |
|
10,250 |
|
-13 |
% |
-9 |
% |
|
|
Process Automation |
|
1,908 |
|
2,088 |
|
-9 |
% |
-17 |
% |
7,347 |
|
7,815 |
|
-6 |
% |
-1 |
% |
|
|
Robotics |
|
231 |
|
407 |
|
-43 |
% |
-47 |
% |
970 |
|
1,642 |
|
-41 |
% |
-38 |
% |
|
|
Corporate (consolidation) |
|
-843 |
|
-949 |
|
11 |
% |
20 |
% |
-3,240 |
|
-3,597 |
|
10 |
% |
4 |
% |
EBIT |
|
Group |
|
798 |
|
459 |
|
74 |
% |
|
|
4,126 |
|
4,552 |
|
-9 |
% |
|
|
|
|
Power Products |
|
495 |
|
444 |
|
11 |
% |
|
|
1,969 |
|
2,100 |
|
-6 |
% |
|
|
|
|
Power Systems |
|
66 |
|
181 |
|
-64 |
% |
|
|
388 |
|
592 |
|
-34 |
% |
|
|
|
|
Automation Products |
|
351 |
|
422 |
|
-17 |
% |
|
|
1,330 |
|
1,908 |
|
-30 |
% |
|
|
|
|
Process Automation |
|
199 |
|
240 |
|
-17 |
% |
|
|
685 |
|
926 |
|
-26 |
% |
|
|
|
|
Robotics |
|
-188 |
|
-73 |
|
-158 |
% |
|
|
-296 |
|
9 |
|
n.a |
|
|
|
|
|
Corporate |
|
-125 |
|
-755 |
|
83 |
% |
|
|
50 |
|
-983 |
|
n.a |
|
|
|
EBIT margin |
|
Group |
|
9.1 |
% |
5.0 |
% |
|
|
|
|
13.0 |
% |
13.0 |
% |
|
|
|
|
|
|
Power Products |
|
15.9 |
% |
13.8 |
% |
|
|
|
|
17.5 |
% |
17.7 |
% |
|
|
|
|
|
|
Power Systems |
|
3.5 |
% |
9.5 |
% |
|
|
|
|
5.9 |
% |
8.6 |
% |
|
|
|
|
|
|
Automation Products |
|
14.3 |
% |
17.0 |
% |
|
|
|
|
14.9 |
% |
18.6 |
% |
|
|
|
|
|
|
Process Automation |
|
10.4 |
% |
11.5 |
% |
|
|
|
|
9.3 |
% |
11.8 |
% |
|
|
|
|
|
|
Robotics |
|
-81.4 |
% |
-17.9 |
% |
|
|
|
|
-30.5 |
% |
0.5 |
% |
|
|
|
|
Q4 2009 orders received and revenues by region
|
|
Orders received |
|
Change |
|
Revenues |
|
Change |
|
||||||||
$ millions |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
Q4 09 |
|
Q4 08 |
|
US$ |
|
Local |
|
Europe |
|
2,872 |
|
2,887 |
|
-1 |
% |
-10 |
% |
3,484 |
|
3,872 |
|
-10 |
% |
-18 |
% |
Americas |
|
1,415 |
|
1,722 |
|
-18 |
% |
-24 |
% |
1,576 |
|
1,843 |
|
-14 |
% |
-20 |
% |
Asia |
|
2,079 |
|
1,882 |
|
10 |
% |
4 |
% |
2,379 |
|
2,394 |
|
-1 |
% |
-7 |
% |
Middle East and Africa |
|
1,084 |
|
692 |
|
57 |
% |
43 |
% |
1,322 |
|
1,031 |
|
28 |
% |
19 |
% |
Group total |
|
7,450 |
|
7,183 |
|
4 |
% |
-5 |
% |
8,761 |
|
9,140 |
|
-4 |
% |
-12 |
% |
Full-year 2009 orders received and revenues by region
|
|
Orders received |
|
Change |
|
Revenues |
|
Change |
|
||||||||
$ millions |
|
2009 |
|
2008 |
|
US$ |
|
Local |
|
2009 |
|
2008 |
|
US$ |
|
Local |
|
Europe |
|
11,983 |
|
16,633 |
|
-28 |
% |
-20 |
% |
13,093 |
|
15,815 |
|
-17 |
% |
-10 |
% |
Americas |
|
5,996 |
|
7,235 |
|
-17 |
% |
-11 |
% |
6,049 |
|
6,428 |
|
-6 |
% |
-2 |
% |
Asia |
|
8,197 |
|
10,242 |
|
-20 |
% |
-16 |
% |
8,684 |
|
8,967 |
|
-3 |
% |
0 |
% |
Middle East and Africa |
|
4,793 |
|
4,172 |
|
15 |
% |
22 |
% |
3,969 |
|
3,702 |
|
7 |
% |
10 |
% |
Group total |
|
30,969 |
|
38,282 |
|
-19 |
% |
-13 |
% |
31,795 |
|
34,912 |
|
-9 |
% |
-4 |
% |
Reconciliation of non-GAAP financial measures
(US$ million, unaudited)
EBIT margin |
|
|
|
Earnings before interest and taxes (EBIT) |
|
4,126 |
|
Revenues |
|
31,795 |
|
EBIT margin (EBIT as % of revenues) |
|
13.0 |
% |
|
|
|
|
Finance net |
|
|
|
Interest and dividend income |
|
121 |
|
Interest and other finance expense |
|
(127 |
) |
Finance net |
|
(6 |
) |
|
|
|
|
Free cash flow (FCF) and as a share of net income (cash conversion) |
|
|
|
Net cash provided by operating activities |
|
4,027 |
|
Changes in financing receivables |
|
(7 |
) |
Purchases of property, plant and equipment and intangible assets |
|
(967 |
) |
Proceeds from sales of property, plant and equipment |
|
36 |
|
Free cash flow |
|
3,089 |
|
Net income |
|
2,901 |
|
Free cash flow as a share of net income |
|
106 |
% |
Free cash flow as a share of net income (also referred to as cash conversion ratio) is a financial measure that is calculated by dividing our FCF by our net income. Management believes FCF and the cash conversion ratio are measures that are helpful in analyzing the cash generated and it uses FCF as a share of net income as a performance target.
Net cash |
|
|
|
Short-term debt and current maturities of long-term debt |
|
(161 |
) |
Long-term debt |
|
(2,172 |
) |
Total debt |
|
(2,333 |
) |
|
|
|
|
Cash and equivalents |
|
7,119 |
|
Marketable securities and short-term investments |
|
2,433 |
|
Cash and marketable securities |
|
9,552 |
|
Net cash |
|
7,219 |
|
Net cash is a financial measure that is calculated as cash and equivalents plus marketable securities and short-term investments, less total debt.
Gearing |
|
|
|
|
|
|
|
Total debt |
|
2,333 |
|
Total stockholders equity, incl. noncontrolling interests |
|
14,473 |
|
Gearing |
|
14 |
% |
Gearing is a financial measure that is calculated as total debt divided by the sum of total debt plus total stockholders equity, including noncontrolling interests. Total debt used for the purpose of calculating net debt and gearing equals long-term debt plus short-term debt and current maturities of long-term debt. Management believes net cash and gearing are helpful in analyzing leverage and considers both measures in evaluating possible financing transactions.
Return on capital employed (ROCE) |
|
|
|
= EBIT x (1-tax rate) / Capital employed |
|
|
|
EBIT |
|
4,126 |
|
Provision for taxes |
|
1,001 |
|
Income from continuing operations before taxes |
|
4,120 |
|
Tax rate |
|
24 |
% |
Capital employed |
|
|
|
= fixed assets + net working capital |
|
|
|
Property, plant and equipment, net |
|
4,072 |
|
Goodwill |
|
3,026 |
|
Other intangible assets, net |
|
443 |
|
Investments in equity method companies |
|
49 |
|
Fixed assets |
|
7,590 |
|
Receivables, net |
|
9,451 |
|
Inventories, net |
|
4,550 |
|
Prepaid expenses |
|
236 |
|
Accounts payable, trade |
|
(3,853 |
) |
Billings in excess of sales |
|
(1,623 |
) |
Accounts payable, other |
|
(1,326 |
) |
Advances from customers |
|
(1,806 |
) |
Accrued expenses |
|
(1,600 |
) |
Net working capital |
|
4,029 |
|
Capital employed |
|
11,619 |
|
ROCE (after tax) |
|
27 |
% |
Return on capital employed (ROCE) is a financial measure defined above that management believes is useful to assess how efficiently we are using our capital. ABB has published a ROCE performance target for 2011.
Appendix I
Preliminary pro forma orders, revenues and EBIT
for realigned automation divisions
Unaudited
US$, in millions
|
|
Orders |
|
Revenues |
|
EBIT |
|
EBIT % |
|
||||||||||||||||
Division |
|
2007 |
|
2008 |
|
2009 |
|
2007 |
|
2008 |
|
2009 |
|
2007 |
|
2008 |
|
2009 |
|
2007 |
|
2008 |
|
2009 |
|
Discrete Automation & Motion |
|
6'064 |
|
7'129 |
|
4'707 |
|
5'414 |
|
6'588 |
|
5'410 |
|
836 |
|
1'066 |
|
555 |
|
15.4 |
% |
16.2 |
% |
10.3 |
% |
Low-Voltage Products |
|
4'199 |
|
4'865 |
|
4'078 |
|
4'125 |
|
4'747 |
|
4'070 |
|
696 |
|
819 |
|
521 |
|
16.9 |
% |
17.3 |
% |
12.8 |
% |
Process Automation |
|
8'476 |
|
9'244 |
|
6'684 |
|
6'936 |
|
8'397 |
|
7'838 |
|
707 |
|
958 |
|
643 |
|
10.2 |
% |
11.4 |
% |
8.2 |
% |
Recalculated divisional targets 2007-2011
Original targets (published Sept. 2007)
|
|
Revenue |
|
EBIT |
|
|
|
|
|
|
|
Power Products |
|
10 |
% |
12-17 |
% |
Power Systems |
|
11 |
% |
6-10 |
% |
Automation Products |
|
8 |
% |
14-19 |
% |
Process Automation |
|
8 |
% |
9-14 |
% |
Robotics |
|
6 |
% |
5-10 |
% |
Recalculated original targets for realigned automation divisions
|
|
Revenue |
|
EBIT |
|
Discrete Automation & Motion |
|
9 |
% |
14-19 |
% |
Low-Voltage Products |
|
7 |
% |
13-17 |
% |
Process Automation |
|
8 |
% |
9-13 |
% |
(1) Compound annual growth rate 2007-11, i.e., base year = 2006
ABB Ltd Interim Consolidated Income Statements (unaudited)
|
|
Year ended |
|
Three months ended |
|
||||
($ in millions, except per share data in $) |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
Sales of products |
|
26,820 |
|
29,705 |
|
7,298 |
|
7,779 |
|
Sales of services |
|
4,975 |
|
5,207 |
|
1,463 |
|
1,361 |
|
Total revenues |
|
31,795 |
|
34,912 |
|
8,761 |
|
9,140 |
|
Cost of products |
|
(19,057 |
) |
(20,506 |
) |
(5,241 |
) |
(5,597 |
) |
Cost of services |
|
(3,413 |
) |
(3,466 |
) |
(1,050 |
) |
(946 |
) |
Total cost of sales |
|
(22,470 |
) |
(23,972 |
) |
(6,291 |
) |
(6,543 |
) |
Gross profit |
|
9,325 |
|
10,940 |
|
2,470 |
|
2,597 |
|
Selling, general and administrative expenses |
|
(5,528 |
) |
(5,822 |
) |
(1,556 |
) |
(1,502 |
) |
Other income (expense), net |
|
329 |
|
(566 |
) |
(116 |
) |
(636 |
) |
Earnings before interest and taxes |
|
4,126 |
|
4,552 |
|
798 |
|
459 |
|
Interest and dividend income |
|
121 |
|
315 |
|
28 |
|
65 |
|
Interest and other finance expense |
|
(127 |
) |
(349 |
) |
(31 |
) |
(210 |
) |
Income from continuing operations before taxes |
|
4,120 |
|
4,518 |
|
795 |
|
314 |
|
Provision for taxes |
|
(1,001 |
) |
(1,119 |
) |
(170 |
) |
(5 |
) |
Income from continuing operations, net of tax |
|
3,119 |
|
3,399 |
|
625 |
|
309 |
|
Income (loss) from discontinued operations, net of tax |
|
17 |
|
(21 |
) |
(9 |
) |
(20 |
) |
Net income |
|
3,136 |
|
3,378 |
|
616 |
|
289 |
|
Net income attributable to noncontrolling interests |
|
(235 |
) |
(260 |
) |
(76 |
) |
(76 |
) |
Net income attributable to ABB |
|
2,901 |
|
3,118 |
|
540 |
|
213 |
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
2,884 |
|
3,142 |
|
549 |
|
234 |
|
Income (loss) from discontinued operations, net of tax |
|
17 |
|
(24 |
) |
(9 |
) |
(21 |
) |
Net income |
|
2,901 |
|
3,118 |
|
540 |
|
213 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
1.26 |
|
1.37 |
|
0.24 |
|
0.10 |
|
Income (loss) from discontinued operations, net of tax |
|
0.01 |
|
(0.01 |
) |
0.00 |
|
(0.01 |
) |
Net income |
|
1.27 |
|
1.36 |
|
0.24 |
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
1.26 |
|
1.37 |
|
0.24 |
|
0.10 |
|
Income (loss) from discontinued operations, net of tax |
|
0.01 |
|
(0.01 |
) |
0.00 |
|
(0.01 |
) |
Net income |
|
1.27 |
|
1.36 |
|
0.24 |
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
Average number of shares (in millions) used to compute: |
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders |
|
2,284 |
|
2,287 |
|
2,286 |
|
2,283 |
|
Diluted earnings per share attributable to ABB shareholders |
|
2,288 |
|
2,296 |
|
2,291 |
|
2,285 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Balance Sheets (unaudited)
($ in millions, except share data) |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
|
|
|
|
|
|
Cash and equivalents |
|
7,119 |
|
6,399 |
|
Marketable securities and short-term investments |
|
2,433 |
|
1,354 |
|
Receivables, net |
|
9,451 |
|
9,245 |
|
Inventories, net |
|
4,550 |
|
5,306 |
|
Prepaid expenses |
|
236 |
|
237 |
|
Deferred taxes |
|
900 |
|
920 |
|
Other current assets |
|
540 |
|
776 |
|
Total current assets |
|
25,229 |
|
24,237 |
|
|
|
|
|
|
|
Financing receivables, net |
|
452 |
|
445 |
|
Property, plant and equipment, net |
|
4,072 |
|
3,562 |
|
Goodwill |
|
3,026 |
|
2,817 |
|
Other intangible assets, net |
|
443 |
|
411 |
|
Prepaid pension and other employee benefits |
|
112 |
|
73 |
|
Investments in equity method companies |
|
49 |
|
68 |
|
Deferred taxes |
|
1,052 |
|
1,120 |
|
Other non-current assets |
|
293 |
|
278 |
|
Total assets |
|
34,728 |
|
33,011 |
|
|
|
|
|
|
|
Accounts payable, trade |
|
3,853 |
|
4,451 |
|
Billings in excess of sales |
|
1,623 |
|
1,224 |
|
Accounts payable, other |
|
1,326 |
|
1,292 |
|
Short-term debt and current maturities of long-term debt |
|
161 |
|
354 |
|
Advances from customers |
|
1,806 |
|
2,014 |
|
Deferred taxes |
|
327 |
|
428 |
|
Provisions for warranties |
|
1,280 |
|
1,105 |
|
Provisions and other current liabilities |
|
2,603 |
|
3,467 |
|
Accrued expenses |
|
1,600 |
|
1,569 |
|
Total current liabilities |
|
14,579 |
|
15,904 |
|
|
|
|
|
|
|
Long-term debt |
|
2,172 |
|
2,009 |
|
Pension and other employee benefits |
|
1,179 |
|
1,071 |
|
Deferred taxes |
|
328 |
|
355 |
|
Other non-current liabilities |
|
1,997 |
|
1,902 |
|
Total liabilities |
|
20,255 |
|
21,241 |
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
Capital stock and additional paid-in capital |
|
3,943 |
|
4,841 |
|
Retained earnings |
|
12,828 |
|
9,927 |
|
Accumulated other comprehensive loss |
|
(2,084 |
) |
(2,710 |
) |
Treasury stock, at cost (39,901,593 shares and 40,108,014 shares at December 31, 2009 and 2008, respectively) |
|
(897 |
) |
(900 |
) |
Total ABB stockholders equity |
|
13,790 |
|
11,158 |
|
Noncontrolling interests |
|
683 |
|
612 |
|
Total stockholders equity |
|
14,473 |
|
11,770 |
|
Total liabilities and stockholders equity |
|
34,728 |
|
33,011 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited)
|
|
Year ended |
|
Three months ended |
|
||||
($ in millions) |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
Dec. 31, 2009 |
|
Dec. 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
3,136 |
|
3,378 |
|
616 |
|
289 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
655 |
|
661 |
|
188 |
|
178 |
|
Pension and postretirement benefits |
|
(28 |
) |
43 |
|
(27 |
) |
(3 |
) |
Deferred taxes |
|
(56 |
) |
(199 |
) |
(45 |
) |
(421 |
) |
Net gain from sale of property, plant and equipment |
|
(15 |
) |
(49 |
) |
(4 |
) |
(15 |
) |
Income (loss) from equity accounted companies |
|
2 |
|
(15 |
) |
1 |
|
(3 |
) |
Other |
|
(6 |
) |
233 |
|
7 |
|
169 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Trade receivables, net |
|
256 |
|
(1,266 |
) |
84 |
|
(73 |
) |
Inventories, net |
|
1,130 |
|
(800 |
) |
732 |
|
217 |
|
Trade payables |
|
(718 |
) |
522 |
|
(15 |
) |
121 |
|
Billings in excess of sales |
|
295 |
|
539 |
|
239 |
|
105 |
|
Provisions, net |
|
(241 |
) |
677 |
|
129 |
|
814 |
|
Advances from customers |
|
(316 |
) |
130 |
|
(298 |
) |
(219 |
) |
Other assets and liabilities, net |
|
(67 |
) |
104 |
|
176 |
|
236 |
|
Net cash provided by operating activities |
|
4,027 |
|
3,958 |
|
1,783 |
|
1,395 |
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
Changes in financing receivables |
|
(7 |
) |
7 |
|
(5 |
) |
8 |
|
Purchases of marketable securities (available-for-sale) |
|
(243 |
) |
(1,081 |
) |
(184 |
) |
(694 |
) |
Purchases of marketable securities (held-to-maturity) |
|
(918 |
) |
|
|
(119 |
) |
|
|
Purchases of short-term investments |
|
(3,824 |
) |
(2,512 |
) |
(1,753 |
) |
(102 |
) |
Purchases of property, plant and equipment and intangible assets |
|
(967 |
) |
(1,171 |
) |
(343 |
) |
(435 |
) |
Acquisition of businesses (net of cash acquired) |
|
(209 |
) |
(653 |
) |
(54 |
) |
(101 |
) |
Proceeds from sales of marketable securities (available-for-sale) |
|
79 |
|
110 |
|
16 |
|
32 |
|
Proceeds from maturity of marketable securities (available-for-sale) |
|
855 |
|
|
|
|
|
|
|
Proceeds from maturity of marketable securities (held-to-maturity) |
|
730 |
|
|
|
457 |
|
|
|
Proceeds from short-term investments |
|
2,253 |
|
5,305 |
|
1,805 |
|
1,109 |
|
Proceeds from sales of property, plant and equipment |
|
36 |
|
94 |
|
13 |
|
49 |
|
Proceeds from sales of businesses and equity accounted companies (net of cash disposed) |
|
16 |
|
46 |
|
6 |
|
|
|
Other |
|
(21 |
) |
(31 |
) |
(1 |
) |
|
|
Net cash provided by (used in) investing activities |
|
(2,220 |
) |
114 |
|
(162 |
) |
(134 |
) |
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
Net changes in debt with maturities of 90 days or less |
|
(59 |
) |
(10 |
) |
(31 |
) |
(42 |
) |
Increase in debt |
|
586 |
|
458 |
|
146 |
|
135 |
|
Repayment of debt |
|
(705 |
) |
(786 |
) |
(182 |
) |
(145 |
) |
Issuance of shares |
|
89 |
|
49 |
|
86 |
|
|
|
Purchase of treasury shares |
|
|
|
(621 |
) |
|
|
(15 |
) |
Dividends paid in the form of nominal value reduction |
|
(1,027 |
) |
(1,060 |
) |
|
|
|
|
Dividends paid to noncontrolling shareholders |
|
(193 |
) |
(152 |
) |
(2 |
) |
(3 |
) |
Other |
|
8 |
|
3 |
|
22 |
|
(60 |
) |
Net cash provided by (used in) financing activities |
|
(1,301 |
) |
(2,119 |
) |
39 |
|
(130 |
) |
|
|
|
|
|
|
|
|
|
|
Effects of exchange rate changes on cash and equivalents |
|
214 |
|
(230 |
) |
(43 |
) |
(79 |
) |
Adjustment for the net change in cash and equivalents in assets held for sale and in discontinued operations |
|
|
|
26 |
|
|
|
|
|
Net change in cash and equivalents - continuing operations |
|
720 |
|
1,749 |
|
1,617 |
|
1,052 |
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents beginning of period |
|
6,399 |
|
4,650 |
|
5,502 |
|
5,347 |
|
Cash and equivalents end of period |
|
7,119 |
|
6,399 |
|
7,119 |
|
6,399 |
|
|
|
|
|
|
|
|
|
|
|
Supplementary disclosure of cash flow information: |
|
|
|
|
|
|
|
|
|
Interest paid |
|
156 |
|
244 |
|
34 |
|
70 |
|
Taxes paid |
|
1,090 |
|
1,065 |
|
261 |
|
272 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Statements of Changes in Stockholders Equity (unaudited)
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
||||||||
($ in millions) |
|
Capital
stock |
|
Retained |
|
Foreign |
|
Unrealized |
|
Pension
and |
|
Unrealized |
|
Total |
|
Treasury |
|
Total
ABB |
|
Noncontrolling |
|
Total |
|
Balance at January 1, 2008 |
|
5,780 |
|
6,809 |
|
(906 |
) |
7 |
|
(486 |
) |
55 |
|
(1,330 |
) |
(302 |
) |
10,957 |
|
592 |
|
11,549 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
3,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,118 |
|
260 |
|
3,378 |
|
Foreign currency translation adjustments |
|
|
|
|
|
(754 |
) |
|
|
|
|
|
|
(754 |
) |
|
|
(754 |
) |
(41 |
) |
(795 |
) |
Foreign currency translation adjustments related to divestments of businesses |
|
|
|
|
|
6 |
|
|
|
|
|
|
|
6 |
|
|
|
6 |
|
|
|