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 July 2013

 

Commission File Number 001-16429

 

ABB Ltd

(Translation of registrant’s 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 registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s 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 registrant’s 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 July 25, 2013.

2.              Announcements regarding transactions in ABB Ltd’s Securities made by the directors or the members of the Executive Committee.

 

The information provided by Item 1 above is deemed filed for all purposes under the Securities Exchange Act of 1934.

 

2



 

Press Release

GRAPHIC

 

ABB Q2: Improved results on balanced portfolio

 

·                      Higher revenues(1), operational EBITDA(2) and EPS despite uncertain market environment

·                      Early-cycle product businesses trending sequentially higher in several key markets

·                      Orders reflect greater ABB project selectivity and lower utility and industrial large capex

·                      Thomas & Betts with positive contribution, synergies on track

 

Zurich, Switzerland, July 25, 2013 — ABB reported higher revenues and earnings in the second quarter of 2013 despite challenging global markets.

 

“We continue to see the positive impact on our results from our balanced geographic and business portfolio,” said ABB Chief Executive Officer Joe Hogan. “We grew orders in a number of key sectors and geographies, including China, and we saw an encouraging trend with sequential order growth in most of our product business compared to the first quarter of the year.

 

“At the same time, we executed from our strong order backlog to drive both revenues and earnings higher, and we continued to take out cost to maintain profitability despite the uncertain market conditions.

 

“Orders were down as the strategic realignment in Power Systems launched at the end of last year started to take shape with our focus on greater project selectivity and higher profitability,” Hogan said. “We’ve seen the first results in higher gross margins in the division’s order backlog.

 

“Delays in the award of large orders, which is linked to the ongoing global macroeconomic uncertainty, also impacted orders this quarter. But our underlying demand drivers remain sound and we still generated a book-to-bill(3) ratio for the first half of the year of 0.99, and 1.06 excluding the Power Systems division.

 

“In addition, we saw another good contribution from Thomas & Betts, with synergies on track. Both power divisions achieved a solid operational EBITDA margin, and we grew service revenues faster than total organic revenues,” Hogan said. “And our improving Net Promoter Scores show we are making progress to increase customer satisfaction.

 

“Our outlook for the rest of the year remains unchanged from the end of the first quarter. Macro indicators are increasingly mixed, which makes predicting the timing of orders more difficult, especially large project orders. However, our strong backlog will continue to partly mitigate that uncertainty, while we continue to focus on balancing cost and growth and increasing customer satisfaction. We remain confident that our business and regional balance will continue to provide us with profitable growth opportunities.”

 

Key figures

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q2 13

 

Q2 12

 

US$

 

Local

 

Organic(4)

 

H1 13

 

H1 12

 

US$

 

Local

 

Organic(4)

 

Orders

 

9,312

 

10,052

 

-7

%

-8

%

-11

%

19,804

 

20,420

 

-3

%

-3

%

-8

%

Order backlog (end June)

 

28,292

 

29,070

 

-3

%

-2

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

10,225

 

9,663

 

6

%

6

%

2

%

19,940

 

18,570

 

7

%

8

%

3

%

Income from operations(5)

 

1,188

 

1,001

 

19

%

 

 

 

 

2,240

 

2,049

 

9

%

 

 

 

 

as % of revenues

 

11.6

%

10.4

%

 

 

 

 

 

 

11.2

%

11.0

%

 

 

 

 

 

 

Operational EBITDA(2)

 

1,561

 

1,471

 

6

%

 

 

 

 

3,019

 

2,699

 

12

%

 

 

 

 

as % of operational revenues(3)

 

15.2

%

15.1

%

 

 

 

 

 

 

15.1

%

14.5

%

 

 

 

 

 

 

Net income attributable to ABB

 

763

 

656

 

16

%

 

 

 

 

1,427

 

1,341

 

6

%

 

 

 

 

Basic net income per share ($)

 

0.33

 

0.29

 

16

%(6)

 

 

 

 

0.62

 

0.58

 

6

%(6)

 

 

 

 

Cash from operating activities

 

543

 

595

 

-9

%

 

 

 

 

320

 

573

 

-44

%

 

 

 

 

 

3



 

Summary of Q2 results

 

Growth overview

 

Market conditions remained mixed in the second quarter. Demand increased in certain countries and industrial sectors and selective grid investments by utilities also continued, although major transmission investments are being postponed as the overall economic climate remains challenging and growth in electricity consumption remains at low levels. At the same time, industrial production continued to slow in many mature economies and emerging markets reduced their growth expectations.

 

ABB’s geographic, technology and channel scope mitigated some of this market variability and allowed the company to tap opportunities for profitable growth. For example, the company increased orders in businesses serving the US construction market, general industry in China, and the automotive sector in both mature and emerging markets. Higher orders in key European markets, such as Germany and Sweden, partly offset some of the continued weakness in southern Europe.

 

ABB’s total orders received in the quarter declined 11 percent on an organic basis (8 percent lower including T&B) compared to the second quarter of 2012, driven mainly by a 45-percent decrease in large orders (above $15 million). Large orders represented 9 percent of total orders, compared to 15 percent in the year-earlier period.

 

Base orders (below $15 million) were 5 percent lower on an organic basis (flat including T&B), partly reflecting increased selectivity in the power businesses. However, orders were higher in most of the product businesses. Service orders increased by 3 percent in the quarter and represented 17 percent of total orders, up from 16 percent in the same quarter in 2012.

 

Revenues rose 6 percent (up 2 percent organic) primarily on execution of the strong order backlog. T&B contributed approximately $640 million to revenues. Service revenues increased by 3 percent in the quarter.

 

Orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions  

 

Q2 13

 

Q2 12

 

US$

 

Local

 

Q2 13

 

Q2 12

 

US$

 

Local

 

Europe

 

3,149

 

3,214

 

-2

%

-4

%

3,421

 

3,441

 

-1

%

-2

%

The Americas

 

2,736

 

2,934

 

-7

%

-6

%

3,052

 

2,577

 

18

%

19

%

Organic

 

2,221

 

2,676

 

-17

%

-16

%

2,526

 

2,319

 

9

%

10

%

Asia

 

2,494

 

2,759

 

-10

%

-10

%

2,783

 

2,708

 

3

%

2

%

Middle East and Africa

 

933

 

1,145

 

-19

%

-17

%

969

 

937

 

3

%

6

%

Group total

 

9,312

 

10,052

 

-7

%

-8

%

10,225

 

9,663

 

6

%

6

%

 

Orders declined regionally, mainly related to lower large orders. Europe declined on a total order basis as power utility investments remained cautious. Automation orders in Europe were steady compared to the same quarter in 2012, while total orders increased in key markets such as Germany and Sweden in the quarter. On an organic basis, orders in the Americas declined, also the result of lower capex by utilities and oil and gas customers. Asia orders fell by 10 percent compared to a strong quarter the year before, as modest growth in China was more than offset by the challenging market in India and declines related to large orders in a number of other countries. Orders grew in Egypt and Saudi Arabia, but overall orders in the Middle East and Africa were lower.

 

4



 

2013 Q2 orders received and revenues by division

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Orders received

 

 

 

Change

 

 

 

 

 

 

 

Change

 

$ millions unless

 

Q2

 

 

 

Change

 

in local

 

Revenues

 

Change

 

in local

 

otherwise indicated

 

2013

 

Q2 2012

 

in US$

 

currency

 

Q2 2013

 

Q2 2012

 

in US$

 

currency

 

Discrete Automation and Motion

 

2,392

 

2,428

 

-1

%

-2

%

2,362

 

2,368

 

0

%

-1

%

Low Voltage Products

 

1,980

 

1,655

 

20

%

19

%

1,929

 

1,596

 

21

%

20

%

Organic

 

1,352

 

1,342

 

1

%

0

%

1,291

 

1,283

 

1

%

0

%

Process Automation

 

1,788

 

2,247

 

-20

%

-21

%

2,130

 

2,052

 

4

%

4

%

Power Products

 

2,596

 

2,791

 

-7

%

-7

%

2,781

 

2,610

 

7

%

6

%

Power Systems

 

1,307

 

1,890

 

-31

%

-31

%

1,962

 

1,872

 

5

%

5

%

Corporate and other (incl. inter-division eliminations)

 

-751

 

-959

 

 

 

 

 

-939

 

-835

 

 

 

 

 

ABB Group

 

9,312

 

10,052

 

-7

%

-8

%

10,225

 

9,663

 

6

%

6

%

Organic

 

 

 

 

 

 

 

-11

%

 

 

 

 

 

 

2

%

 

Discrete Automation and Motion: Orders reflect generally weaker industrial activity in several large markets compared to a year ago, which was partly offset by large orders for power conversion equipment used in rail applications and robotics equipment in the automotive industry. Revenues were flat as execution of the order backlog compensated lower sales of early-cycle products such as industrial motors and drives. Service revenues increased 4 percent.

 

Low Voltage Products: Orders and revenues were flat on an organic basis as demand growth for many early-cycle products was offset by a decline in orders for low-voltage systems used in mid- to late-cycle sectors. Organic orders and revenues trended higher in a number of key markets in the quarter, including China, Russia and the US. Service orders and revenues grew at a double-digit pace.

 

Process Automation: Orders declined primarily as the result of fewer large orders in the oil and gas, mining and marine sectors compared to the same quarter a year earlier. Revenue growth was driven by the execution of the strong order backlog in marine and mining. Lifecycle service revenues increased 5 percent.

 

Power Products: Demand for power distribution and industrial applications remained steady. Utilities continued to make targeted investments in power transmission. The challenging market conditions combined with continued selectivity resulted in a lower order intake compared to the second quarter of the previous year. Higher revenues reflect execution of the order backlog and growth in service volumes.

 

Power Systems: The division’s strategic repositioning to increase project selectivity and enhance margins was the primary reason for lower orders received in the quarter. In addition, economic uncertainties in most regions continued to result in project delays, although longer-term growth drivers to strengthen and interconnect power grids, increase reliability and integrate renewables remain intact. Revenues were higher across most businesses in the quarter on execution of the order backlog. Service revenues also grew.

 

5



 

Earnings overview

 

Operational EBITDA

 

Operational EBITDA in the second quarter of 2013 amounted to $1.6 billion, an increase of 6 percent. T&B contributed approximately $115 million to operational EBITDA.

 

The Group’s operational EBITDA margin was flat compared to the same period in 2012. Cost savings from sourcing initiatives and operational improvements more than offset the negative impact of lower-margin orders being executed out of the power backlog. Margins were supported by improved capacity utilization and continuing discipline in selling, general and administrative (SG&A) expenses in response to current market conditions.

 

Income from operations(7)

 

Income from operations amounted to approximately $1.2 billion, 19 percent higher compared to the same quarter in 2012. The increase partly reflects the net impact of foreign exchange and commodity timing differences(8), which increased income from operations in the second quarter of 2013 by $8 million compared with a negative impact in the same period a year earlier of $82 million. In addition, acquisition-related expenses and certain non-operational items totaled $28 million in the second quarter of 2013 compared with $90 million in the same quarter a year earlier. Also included in income from operations is acquisition-related amortization of $93 million, compared with $82 million a year earlier.

 

Net income

 

Net income for the quarter increased 16 percent to $763 million, mainly related to foreign exchange and commodity timing differences as well as lower acquisition-related expenses and certain non-operational items. Basic earnings per share in the second quarter amounted to $0.33 versus $0.29 a year earlier. Operational EPS(9) increased 2 percent compared to the second quarter of 2012.

 

6



 

2013 Q2 earnings and cash flows by division

 

 

 

Operational
EBITDA

 

 

 

Operational
EBITDA margin

 

Cash flows from
operating
activities

 

 

 

$ millions unless
otherwise indicated

 

Q2
2013

 

Q2
2012

 

Change
in US$

 

Q2 2013

 

Q2 2012

 

Q2 2013

 

Q2 2012

 

Change
 in US$

 

Discrete Automation and Motion

 

428

 

446

 

-4

%

18.1

%

18.8

%

326

 

332

 

-2

%

Low Voltage Products

 

367

 

286

 

28

%

19.0

%

17.9

%

255

 

161

 

58

%

Organic

 

251

 

228

 

10

%

19.4

%

17.7

%

 

 

 

 

 

 

Process Automation

 

252

 

268

 

-6

%

11.8

%

13.1

%

163

 

95

 

72

%

Power Products

 

409

 

387

 

6

%

14.7

%

14.7

%

223

 

224

 

0

%

Power Systems

 

159

 

119

 

34

%

7.9

%

6.2

%

-151

 

90

 

n.a

 

Corporate and other (incl. inter-division eliminations)

 

-54

 

-35

 

 

 

 

 

 

 

-273

 

-307

 

11

%

ABB Group

 

1,561

 

1,471

 

6

%

15.2

%

15.1

%

543

 

595

 

-9

%

 

Discrete Automation and Motion: Earnings and margins partly reflect a change in revenue mix versus the year-earlier period, driven in part by an increased share of system revenues where margins are below the divisional average.

 

Low Voltage Products: The operational EBITDA margin excluding Thomas & Betts increased on a combination of successful cost management, growth in a number of higher-margin product businesses, and an increase in the share of service revenues.

 

Process Automation: Lower operational EBITDA and margins primarily reflect the timing of project revenues as well as some under-absorption of fixed costs in parts of the more profitable product business, which more than offset margin improvements in lifecycle services.

 

Power Products: Continued cost savings and a favorable product mix enabled the division to maintain its operational EBITDA margin at the same level as a year ago.

 

Power Systems: The increase in operational EBITDA margin mainly reflects improved project execution. Cash from operating activities was affected by the timing of project payments as well as initiatives related to the repositioning.

 

Balance sheet and cash flow

 

Total debt amounted to $8.1 billion compared to $10.1 billion at the end of 2012. The reduction primarily resulted from the maturity of €700 million bonds in June 2013 and a reduction in commercial paper outstanding of approximately $710 million.

 

Net debt(10) was $3.4 billion at the end of June 2013 versus $1.6 billion at the end of December 2012. The primary contributor to the change was the payment of the annual dividend to shareholders of approximately $1.7 billion.

 

ABB reported cash from operations of $543 million versus $595 million in the same quarter in 2012, reflecting a combination of higher net working capital needed to execute large projects and the timing of customer advances, both factors related mainly to Power Systems. Net working capital as a percentage of revenues(8) amounted to 17.5 percent, an increase of 1.8 percentage-points versus the end of the same quarter a year earlier.

 

7



 

In June, Moody’s credit rating agency reiterated its A2 rating on ABB’s long-term debt, with a stable outlook.

 

Acquisitions

 

ABB announced in April the planned acquisition of US-based solar inverter manufacturer Power-One for approximately $1 billion. The deal is aimed at positioning ABB as a global leader in what it expects to be a high-growth renewable-energy market. All shareholder and regulatory approvals have been received and the transaction is expected to close shortly.

 

Technology and innovation

 

ABB continued to drive technology advances and launch new products aimed at helping customers improve productivity and energy efficiency. For example, the company announced the delivery of a new generation of multiplexers—devices used to increase the amount of data carried over existing communication lines—to a Swiss utility. The products play a central role in the development of smarter and safer grids.

 

Other innovations include new software to help utilities and industries ensure the reliability of critical infrastructure. The solution combines ABB’s expertise in technologies such as transformers and circuit breakers with business enterprise IT software to automate processes, manage critical assets more efficiently, and prioritize maintenance and repair activities. The technology is being deployed by American Electric Power (AEP), one of the leading power utilities in the US, in all of its transmission substations across the country.

 

ABB recently announced a project to supply chargers to more than 200 electric vehicle fast-charging stations in the Netherlands, bringing an EV fast charger within 50 kilometers of all of the country’s 16.7 million inhabitants. The stations will be capable of charging electric vehicles in 15-30 minutes. ABB also developed a new boost charging technology that will be deployed for the first time on a large capacity electric bus in Geneva, Switzerland. The bus will be charged at selected stops with a 15-second energy boost.

 

ABB’s advanced technology for high-efficiency motors helped the company strengthen its market leadership in low-voltage motors. According to a recent report from information and analytics provider IHS, in 2012 ABB boosted its share in an approximately $15-billion market to 14 percent.

 

Management Changes

 

During the second quarter, ABB announced the resignation of Joe Hogan as Chief Executive Officer (CEO) and the appointment of his successor, Ulrich Spiesshofer.

 

Spiesshofer, who is currently an executive vice president and head of the Discrete Automation and Motion division, will succeed Hogan on September 15, 2013 in an orderly transition.

 

ABB also announced the resignation of Chief Technology Officer Prith Banerjee, whose successor is expected to be announced in due course.

 

Outlook

 

Our long-term growth drivers—such as the need for greater industrial productivity, more reliable and efficient power delivery and growth in renewables—remain in place. Shorter-term trends such as industrial production growth and government policy are expected to remain the key drivers of demand over the rest of 2013. There are no clear changes in demand trends seen in the first half of the year as we head into the second half of 2013.

 

8



 

In a market environment in which near-term uncertainty is likely to remain, we will continue to focus on executing our large order backlog and taking advantage of our broad product and geographic scope to capture profitable growth opportunities in line with our 2011-15 targets.

 

This will be supported by our ongoing initiatives to improve margins and project selection and execution. Growing service revenues, securing the synergies from recent acquisitions, increasing customer satisfaction and successfully commercializing our pipeline of innovative technologies will remain important contributors to our growth and profitability targets.

 

We will continue to drive cost savings and productivity improvements equivalent to 3-5 percent of cost of sales every year through improved supply management, better quality and higher returns on investments in sales and R&D. We remain committed to delivering higher cash to shareholders and improving returns on our capital investments in both organic and inorganic growth.

 

9



 

More information

 

The 2013 Q2 results press release is available from July 25, 2013, on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorcenter, where a presentation for investors will also be published.

 

A video from Chief Executive Officer Joe Hogan on ABB’s second-quarter 2013 results will be available at 06:30 a.m. Central European Time (CET) today at www.youtube.com/abb.

 

ABB will host a media conference call starting at 10:30 a.m. CET. Callers from the US and Canada should dial +1 866 291 4166 (Toll-Free). U.K. callers should dial +44 203 059 58 62. From Sweden +46 85 051 0031, and from the rest of Europe, +41 58 310 50 00. Lines will be open 15 minutes before the conference starts. Playback of the call will start 1 hour after the call ends and will be available for 24 hours: Playback numbers: +44 207 108 6233 (U.K.), +41 91 612 4330 (rest of Europe) or +1 866 416 2558 (U.S./Canada). The code is 15047, followed by the # key. The recorded session will also be available as a podcast 1 hour after the end of the call and can be downloaded from www.abb.com/news.

 

A conference call for analysts and investors is scheduled to begin today at 3:00 p.m. CET (2:00 p.m. in the UK, 9:00 a.m. EDT). Callers should dial +1 866 291 4166 from the US/Canada (toll-free), +44 203 059 5862 from the U.K., +46 8 5051 0031 (Sweden) or +41 58 310 5000 from the rest of the world. Callers are requested to phone in 15 minutes before the start of the call. The recorded session will be available as a podcast one hour after the end of the conference call and can be downloaded from our website. You will find the link to access the podcast at www.abb.com/investorcenter.

 

Investor calendar 2013

 

 

Third-quarter 2013 results

 

October 24, 2013

Fourth-quarter 2013 results

 

February 13, 2014

First-quarter 2014 results

 

April 29, 2014

Annual General Meeting, Zurich, Switzerland

 

April 30, 2014

Second-quarter 2014 results

 

July 24, 2014

 

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 145,000 people.

 

Zurich, July 25, 2013

Joe Hogan, CEO

 

Important notices

 

This press release includes forward-looking information and statements 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 associated with the volatile global economic environment and political conditions, costs associated with compliance activities, raw materials availability and 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 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.

 

This press release also contains non-GAAP measures of performance. Definitions of these measures and reconciliations between these measures and their GAAP counterparts can be found in “Supplemental financial information” attached to this press release.

 

For more information please contact:

 

Media Relations:

 

Investor Relations:

 

ABB Ltd

Thomas Schmidt, Antonio Ligi

 

Switzerland: Tel. +41 43 317 7111

 

Affolternstrasse 44

(Zurich, Switzerland)

 

USA: Tel. +1 919 856 3827

 

CH-8050 Zurich, Switzerland

Tel: +41 43 317 6568

 

investor.relations@ch.abb.com

 

 

Fax: +41 43 317 7958

 

 

 

 

media.relations@ch.abb.com

 

 

 

 

 

10



 

Key figures

 

$ millions

 

 

 

Q2 13

 

Q2 12

 

Change

 

H1 13

 

H1 12

 

Change

 

 

 

 

 

 

 

 

 

US$

 

Local

 

 

 

 

 

US$

 

Local

 

Orders

 

ABB Group

 

9,312

 

10,052

 

-7

%

-8

%

19,804

 

20,420

 

-3

%

-3

%

 

 

Discrete Automation and Motion

 

2,392

 

2,428

 

-1

%

-2

%

4,877

 

5,106

 

-4

%

-5

%

 

 

Low Voltage Products

 

1,980

 

1,655

 

20

%

19

%

3,914

 

2,992

 

31

%

31

%

 

 

Process Automation

 

1,788

 

2,247

 

-20

%

-21

%

4,288

 

4,787

 

-10

%

-11

%

 

 

Power Products

 

2,596

 

2,791

 

-7

%

-7

%

5,455

 

5,908

 

-8

%

-8

%

 

 

Power Systems

 

1,307

 

1,890

 

-31

%

-31

%

2,944

 

3,848

 

-23

%

-23

%

 

 

Corporate and other (incl. inter-division eliminations)

 

(751

)

(959

)

 

 

 

 

(1,674

)

(2,221

)

 

 

 

 

Revenues

 

ABB Group

 

10,225

 

9,663

 

6

%

6

%

19,940

 

18,570

 

7

%

8

%

 

 

Discrete Automation and Motion

 

2,362

 

2,368

 

0

%

-1

%

4,689

 

4,610

 

2

%

2

%

 

 

Low Voltage Products

 

1,929

 

1,596

 

21

%

20

%

3,706

 

2,788

 

33

%

33

%

 

 

Process Automation

 

2,130

 

2,052

 

4

%

4

%

4,108

 

4,022

 

2

%

3

%

 

 

Power Products

 

2,781

 

2,610

 

7

%

6

%

5,270

 

5,123

 

3

%

3

%

 

 

Power Systems

 

1,962

 

1,872

 

5

%

5

%

4,013

 

3,679

 

9

%

10

%

 

 

Corporate and other (incl. inter-division eliminations)

 

(939

)

(835

)

 

 

 

 

(1,846

)

(1,652

)

 

 

 

 

Income from operations

 

ABB Group

 

1,188

 

1,001

 

19

%

 

 

2,240

 

2,049

 

9

%

 

 

 

 

Discrete Automation and Motion

 

361

 

382

 

-5

%

 

 

698

 

736

 

-5

%

 

 

 

 

Low Voltage Products

 

262

 

139

 

88

%

 

 

494

 

319

 

55

%

 

 

 

 

Process Automation

 

233

 

232

 

0

%

 

 

457

 

466

 

-2

%

 

 

 

 

Power Products

 

346

 

302

 

15

%

 

 

629

 

625

 

1

%

 

 

 

 

Power Systems

 

108

 

37

 

192

%

 

 

213

 

125

 

70

%

 

 

 

 

Corporate and other (incl. inter-division eliminations)

 

(122

)

(91

)

 

 

 

 

(251

)

(222

)

 

 

 

 

Income from operations %

 

ABB Group

 

11.6

%

10.4

%

 

 

 

 

11.2

%

11.0

%

 

 

 

 

 

 

Discrete Automation and Motion

 

15.3

%

16.1

%

 

 

 

 

14.9

%

16.0

%

 

 

 

 

 

 

Low Voltage Products

 

13.6

%

8.7

%

 

 

 

 

13.3

%

11.4

%

 

 

 

 

 

 

Process Automation

 

10.9

%

11.3

%

 

 

 

 

11.1

%

11.6

%

 

 

 

 

 

 

Power Products

 

12.4

%

11.6

%

 

 

 

 

11.9

%

12.2

%

 

 

 

 

 

 

Power Systems

 

5.5

%

2.0

%

 

 

 

 

5.3

%

3.4

%

 

 

 

 

Operational EBITDA (2)

 

ABB Group

 

1,561

 

1,471

 

6

%

 

 

3,019

 

2,699

 

12

%

 

 

 

 

Discrete Automation and Motion

 

428

 

446

 

-4

%

 

 

844

 

863

 

-2

%

 

 

 

 

Low Voltage Products

 

367

 

286

 

28

%

 

 

687

 

483

 

42

%

 

 

 

 

Process Automation

 

252

 

268

 

-6

%

 

 

511

 

511

 

0

%

 

 

 

 

Power Products

 

409

 

387

 

6

%

 

 

781

 

750

 

4

%

 

 

 

 

Power Systems

 

159

 

119

 

34

%

 

 

328

 

236

 

39

%

 

 

 

 

Corporate and other (incl. inter-division eliminations)

 

(54

)

(35

)

 

 

 

 

(132

)

(144

)

 

 

 

 

Operational EBITDA % (3)

 

ABB Group

 

15.2

%

15.1

%

 

 

 

 

15.1

%

14.5

%

 

 

 

 

 

 

Discrete Automation and Motion

 

18.1

%

18.8

%

 

 

 

 

18.0

%

18.7

%

 

 

 

 

 

 

Low Voltage Products

 

19.0

%

17.9

%

 

 

 

 

18.5

%

17.3

%

 

 

 

 

 

 

Process Automation

 

11.8

%

13.1

%

 

 

 

 

12.4

%

12.7

%

 

 

 

 

 

 

Power Products

 

14.7

%

14.7

%

 

 

 

 

14.8

%

14.6

%

 

 

 

 

 

 

Power Systems

 

7.9

%

6.2

%

 

 

 

 

8.1

%

6.4

%

 

 

 

 

 

11



 

Orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions 

 

H1 13

 

H1 12

 

US$

 

Local

 

H1 13

 

H1 12

 

US$

 

Local

 

Europe

 

7,033

 

7,108

 

-1

%

-2

%

6,798

 

6,827

 

0

%

-1

%

The Americas

 

5,534

 

5,629

 

-2

%

-1

%

5,876

 

4,903

 

20

%

21

%

Organic

 

4,552

 

5,371

 

-15

%

-14

%

4,883

 

4,645

 

5

%

6

%

Asia

 

5,309

 

5,525

 

-4

%

-4

%

5,327

 

5,031

 

6

%

6

%

Middle East and Africa

 

1,928

 

2,158

 

-11

%

-8

%

1,939

 

1,809

 

7

%

10

%

Group total

 

19,804

 

20,420

 

-3

%

-3

%

19,940

 

18,570

 

7

%

8

%

 

Operational EBITDA

 

 

 

ABB

 

Discrete Automation
and Motion

 

Low Voltage
Products

 

Process Automation

 

Power Products

 

Power Systems

 

$ millions 

 

Q2 13

 

Q2 12

 

Q2 13

 

Q2 12

 

Q2 13

 

Q2 12

 

Q2 13

 

Q2 12

 

Q2 13

 

Q2 12

 

Q2 13

 

Q2 12

 

Revenues

 

10,225

 

9,663

 

2,362

 

2,368

 

1,929

 

1,596

 

2,130

 

2,052

 

2,781

 

2,610

 

1,962

 

1,872

 

FX/commodity timing differences on Revenues

 

76

 

61

 

1

 

1

 

 

3

 

13

 

1

 

 

18

 

63

 

37

 

Operational revenues

 

10,301

 

9,724

 

2,363

 

2,369

 

1,929

 

1,599

 

2,143

 

2,053

 

2,781

 

2,628

 

2,025

 

1,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

1,188

 

1,001

 

361

 

382

 

262

 

139

 

233

 

232

 

346

 

302

 

108

 

37

 

Depreciation

 

204

 

174

 

35

 

34

 

51

 

33

 

17

 

15

 

44

 

43

 

21

 

17

 

Amortization

 

114

 

107

 

31

 

31

 

31

 

20

 

5

 

5

 

8

 

9

 

24

 

26

 

including total acquisition-related amortization of

 

93

 

82

 

28

 

27

 

30

 

18

 

3

 

3

 

5

 

8

 

22

 

22

 

Restructuring and restructuring-related expenses

 

35

 

17

 

3

 

(5

)

2

 

5

 

9

 

8

 

20

 

6

 

 

2

 

Acquisition-related expenses and certain non-operational items

 

28

 

90

 

5

 

1

 

3

 

81

 

1

 

 

 

 

1

 

3

 

FX/commodity timing differences in income from operations

 

(8

)

82

 

(7

)

3

 

18

 

8

 

(13

)

8

 

(9

)

27

 

5

 

34

 

Operational EBITDA

 

1,561

 

1,471

 

428

 

446

 

367

 

286

 

252

 

268

 

409

 

387

 

159

 

119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational EBITDA margin (%)

 

15.2

%

15.1

%

18.1

%

18.8

%

19.0

%

17.9

%

11.8

%

13.1

%

14.7

%

14.7

%

7.9

%

6.2

%

 


(1) Management discussion of orders and revenues focuses on local currency changes. U.S. dollar changes are reported in results tables

(2) See Reconciliation of operational EBITDA to Income from continuing operations before taxes in Note 14 to the Interim Consolidated Financial Information (unaudited)

(3) For reconciliations of non-GAAP measures, see the Supplemental financial information attachment to this press release

(4) Organic changes are in local currencies and exclude Thomas & Betts (acquired in May 2012)

(5) Previously referred to as Earnings Before Interest and Taxes (EBIT)

(6) Calculated on basic earnings per share before rounding

(7) Previously referred to as Earnings Before Interest and Taxes (EBIT)

(8) See Reconciliation of operational EBITDA to Income from continuing operations before taxes in Note 14 to the Interim Consolidated Financial Information (unaudited)

(9) For reconciliations of non-GAAP measures, see the Supplemental financial information attachment to this press release

(10) For reconciliations of non-GAAP measures, see the Supplemental financial information attachment to this press release

 

12



 

 

Supplemental financial information

June 30, 2013

 

ABB presents the following financial measures to supplement its Interim Consolidated Financial Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). These supplemental financial measures are, or may be, considered non-GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission (SEC).

 

While ABB’s management believes that the non-GAAP financial measures herein are useful in evaluating ABB’s operating results, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP. Therefore these measures should not be viewed in isolation but considered together with the Interim Consolidated Financial Information (unaudited) prepared in accordance with U.S. GAAP as of and for the six and three months ended June 30, 2013.

 

Operational EBITDA margin

 

Definition

 

Operational EBITDA

 

Operational EBITDA represents income from operations excluding depreciation and amortization, restructuring and restructuring-related expenses, and acquisition-related expenses and certain non-operational items, as well as foreign exchange/commodity timing differences in income from operations consisting of: (i) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).

 

Operational revenues

 

Operational revenues are total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives, (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables (and related assets).

 

Operational EBITDA margin

 

Operational EBITDA margin is Operational EBITDA as a percentage of Operational revenues.

 

13



 

Reconciliation

 

 

 

Six months ended June 30, 2013

 

($ in millions, except Operational
EBITDA margin in %)

 

Discrete
Automation
and Motion

 

Low Voltage
Products

 

Process
Automation

 

Power
Products

 

Power
Systems

 

Corporate
and Other
and
Intersegment
elimination

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

4,689

 

3,706

 

4,108

 

5,270

 

4,013

 

(1,846

)

19,940

 

Foreign exchange/commodity timing differences in total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives

 

11

 

8

 

19

 

22

 

64

 

 

124

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

1

 

 

4

 

5

 

2

 

 

12

 

Unrealized foreign exchange movements on receivables (and related assets)

 

(7

)

(6

)

(5

)

(13

)

(22

)

(1

)

(54

)

Operational revenues

 

4,694

 

3,708

 

4,126

 

5,284

 

4,057

 

(1,847

)

20,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

698

 

494

 

457

 

629

 

213

 

(251

)

2,240

 

Depreciation and amortization

 

130

 

161

 

42

 

110

 

90

 

106

 

639

 

Restructuring and restructuring- related expenses

 

4

 

6

 

12

 

27

 

5

 

 

54

 

Acquisition-related expenses and certain non-operational items

 

7

 

5

 

1

 

 

1

 

18

 

32

 

Foreign exchange/commodity timing differences in income from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives)

 

6

 

25

 

(1

)

18

 

33

 

(4

)

77

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

2

 

 

1

 

5

 

3

 

 

11

 

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

 

(3

)

(4

)

(1

)

(8

)

(17

)

(1

)

(34

)

Operational EBITDA

 

844

 

687

 

511

 

781

 

328

 

(132

)

3,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational EBITDA margin (%)

 

18.0

%

18.5

%

12.4

%

14.8

%

8.1

%

 

15.1

%

 

14



 

 

 

Six months ended June 30, 2012

 

($ in millions, except Operational
EBITDA margin in %)

 

Discrete
Automation
and Motion

 

Low Voltage
Products

 

Process
Automation

 

Power
Products

 

Power
Systems

 

Corporate
and Other
and
Intersegment
elimination

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

4,610

 

2,788

 

4,022

 

5,123

 

3,679

 

(1,652

)

18,570

 

Foreign exchange/commodity timing differences in total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives

 

3

 

(5

)

(10

)

(3

)

(1

)

(2

)

(18

)

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

 

 

3

 

 

21

 

 

24

 

Unrealized foreign exchange movements on receivables (and related assets)

 

(4

)

2

 

(2

)

5

 

(10

)

1

 

(8

)

Operational revenues

 

4,609

 

2,785

 

4,013

 

5,125

 

3,689

 

(1,653

)

18,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

736

 

319

 

466

 

625

 

125

 

(222

)

2,049

 

Depreciation and amortization

 

126

 

81

 

40

 

104

 

84

 

99

 

534

 

Restructuring and restructuring- related expenses

 

(4

)

5

 

8

 

19

 

4

 

2

 

34

 

Acquisition-related expenses and certain non-operational items

 

5

 

84

 

 

 

3

 

(21

)

71

 

Foreign exchange/commodity timing differences in income from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives)

 

1

 

(11

)

(8

)

(9

)

12

 

(1

)

(16

)

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

(1

)

1

 

4

 

3

 

21

 

(2

)

26

 

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

 

 

4

 

1

 

8

 

(13

)

1

 

1

 

Operational EBITDA

 

863

 

483

 

511

 

750

 

236

 

(144

)

2,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational EBITDA margin (%)

 

18.7

%

17.3

%

12.7

%

14.6

%

6.4

%

 

14.5

%

 

15



 

 

 

Three months ended June 30, 2013

 

($ in millions, except Operational
EBITDA margin in %)

 

Discrete
Automation
and Motion

 

Low Voltage
Products

 

Process
Automation

 

Power
Products

 

Power
Systems

 

Corporate
and Other
and
Intersegment
elimination

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

2,362

 

1,929

 

2,130

 

2,781

 

1,962

 

(939

)

10,225

 

Foreign exchange/commodity timing differences in total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives

 

7

 

 

15

 

7

 

78

 

 

107

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

1

 

 

4

 

4

 

 

 

9

 

Unrealized foreign exchange movements on receivables (and related assets)

 

(7

)

 

(6

)

(11

)

(15

)

(1

)

(40

)

Operational revenues

 

2,363

 

1,929

 

2,143

 

2,781

 

2,025

 

(940

)

10,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

361

 

262

 

233

 

346

 

108

 

(122

)

1,188

 

Depreciation and amortization

 

66

 

82

 

22

 

52

 

45

 

51

 

318

 

Restructuring and restructuring- related expenses

 

3

 

2

 

9

 

20

 

 

1

 

35

 

Acquisition-related expenses and certain non-operational items

 

5

 

3

 

1

 

 

1

 

18

 

28

 

Foreign exchange/commodity timing differences in income from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives)

 

(10

)

13

 

(14

)

(12

)

14

 

(3

)

(12

)

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

1

 

 

1

 

3

 

(2

)

 

3

 

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

 

2

 

5

 

 

 

(7

)

1

 

1

 

Operational EBITDA

 

428

 

367

 

252

 

409

 

159

 

(54

)

1,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational EBITDA margin (%)

 

18.1

%

19.0

%

11.8

%

14.7

%

7.9

%

 

15.2

%

 

16



 

 

 

Three months ended June 30, 2012

 

($ in millions, except Operational
EBITDA margin in %)

 

Discrete
Automation
and Motion

 

Low Voltage
Products

 

Process
Automation

 

Power
Products

 

Power
Systems

 

Corporate
and Other
and
Intersegment
elimination

 

Consolidated

 

Total revenues

 

2,368

 

1,596

 

2,052

 

2,610

 

1,872

 

(835

)

9,663

 

Foreign exchange/commodity timing differences in total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives

 

4

 

6

 

7

 

16

 

53

 

(1

)

85

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

1

 

 

2

 

1

 

11

 

1

 

16

 

Unrealized foreign exchange movements on receivables (and related assets)

 

(4

)

(3

)

(8

)

1

 

(27

)

1

 

(40

)

Operational revenues

 

2,369

 

1,599

 

2,053

 

2,628

 

1,909

 

(834

)

9,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

382

 

139

 

232

 

302

 

37

 

(91

)

1,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

65

 

53

 

20

 

52

 

43

 

48

 

281

 

Restructuring and restructuring- related expenses

 

(5

)

5

 

8

 

6

 

2

 

1

 

17

 

Acquisition-related expenses and certain non-operational items

 

1

 

81

 

 

 

3

 

5

 

90

 

Foreign exchange/commodity timing differences in income from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives)

 

7

 

10

 

13

 

29

 

52

 

2

 

113

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

 

 

3

 

 

11

 

 

14

 

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

 

(4

)

(2

)

(8

)

(2

)

(29

)

 

(45

)

Operational EBITDA

 

446

 

286

 

268

 

387

 

119

 

(35

)

1,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational EBITDA margin (%)

 

18.8

%

17.9

%

13.1

%

14.7

%

6.2

%

 

15.1

%

 

17



 

Operational EPS

 

Definition

 

Operational net income

 

Operational net income is calculated as Net income attributable to ABB adjusted for the net-of-tax impact (using the Group’s effective tax rate) of:

 

i)

 

restructuring and restructuring-related expenses,

ii)

 

acquisition-related expenses and certain non-operational items,

iii)

 

foreign exchange/commodity timing differences in Income from operations consisting of: (a) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities), and

iv)

 

amortization related to acquisitions.

 

Amortization related to acquisitions

 

Amortization expense on intangibles arising upon acquisitions.

 

Operational EPS

 

Operational EPS is calculated as Operational net income divided by the weighted-average number of shares used in determining Basic EPS.

 

Reconciliation

 

 

 

Six months ended

 

 

 

June 30, 2013

 

June 30, 2012

 

($ in millions, except per share data in $)

 

 

 

EPS(1)

 

 

 

EPS(1)

 

Net income (attributable to ABB)

 

1,427

 

0.62

 

1,341

 

0.58

 

Restructuring and restructuring-related expenses(2)

 

38

 

0.02

 

24

 

0.01

 

Acquisition-related expenses and certain non-operational items(2)

 

23

 

0.01

 

51

 

0.02

 

FX/commodity timing differences in Income from operations(2)

 

38

 

0.02

 

8

 

0.00

 

Amortization related to acquisitions(2)

 

132

 

0.06

 

106

 

0.05

 

Operational net income

 

1,658

 

0.72

 

1,530

 

0.67

 

 

 

 

Three months ended

 

 

 

June 30, 2013

 

June 30, 2012

 

($ in millions, except per share data in $)

 

 

 

EPS(1)

 

 

 

EPS(1)

 

Net income (attributable to ABB)

 

763

 

0.33

 

656

 

0.29

 

Restructuring and restructuring-related expenses(2)

 

25

 

0.01

 

12

 

0.01

 

Acquisition-related expenses and certain non-operational items(2)

 

20

 

0.01

 

65

 

0.03

 

FX/commodity timing differences in Income from operations(2)

 

(6

)

0.00

 

60

 

0.03

 

Amortization related to acquisitions(2)

 

66

 

0.03

 

60

 

0.03

 

Operational net income

 

868

 

0.38

 

853

 

0.37

 

 


(1) EPS amounts are computed separately, therefore the sum of the per share amounts shown may not equal to the total.

(2) Net of tax at Group effective tax rate.

 

18



 

Net debt

 

Definition

 

Net debt

 

Net debt is defined as Total debt less Cash and marketable securities.

 

Total debt

 

Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.

 

Cash and marketable securities

 

Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short-term investments.

 

Reconciliation

 

($ in millions)

 

June 30, 2013

 

December 31, 2012

 

Short-term debt and current maturities of long-term debt

 

712

 

2,537

 

Long-term debt

 

7,417

 

7,534

 

Total debt

 

8,129

 

10,071

 

 

 

 

 

 

 

Cash and equivalents

 

4,148

 

6,875

 

Marketable securities and short-term investments

 

543

 

1,606

 

Cash and marketable securities

 

4,691

 

8,481

 

 

 

 

 

 

 

Net debt

 

3,438

 

1,590

 

 

19



 

Net debt to EBITDA

 

Definition

 

Net debt to EBITDA is calculated as Net debt divided by Income from operations adjusted to exclude depreciation and amortization for the trailing twelve months.

 

Reconciliation

 

($ in millions)

 

June 30, 2013

 

December 31, 2012

 

 

 

 

 

 

 

Net debt (as defined above)

 

3,438

 

1,590

 

 

 

 

 

 

 

EBITDA

 

 

 

 

 

Income from operations for the three months ended: