ABB reports continued growth in first six months

Zurich, Switzerland, July 20, 2000 – Global technology company ABB said today the continued solid growth in earnings, margins and orders in the first half of 2000 reflected its focus on knowledge-based businesses, Industrial IT and service. Net income rose 16 percent (23 percent in local currencies) compared to the same period last year, earnings per share reached US$ 3.23 from US$ 2.80, and cash flow jumped 46 percent.

  • Net income up 16 percent, 23 percent in local currencies
  • Operating margins improve for all industrial segments
  • Operating margin for Automation up to 8.6 percent from 6.7 percent
  • Operating cash flow increased by 46 percent
  • Orders up 6 percent, 13 percent in local currencies

The company said it continues to integrate intelligence and Internet capabilities into more of its products, systems and services across ABB from Power Transmission to Building Technologies and Financial Services. ABB also launched a new global alternative energy business in anticipation of strong growth in demand for smaller-scale, cleaner and more efficient electricity generation and delivery.

US$ in millions unless otherwise stated
Jan. – June
2000
Jan. – June
1999 2)
Change in
nominal 1)
Change in local currencies 1)
Orders Received
13,447
12,680
+6 %
+13 %
Revenues
10,762
11,505
-6 %
+1 %
Operating Earnings after Depreciation 3)
1,038
1,002
+4 %
Net Income
970
839
+16 %
Earnings per Share (US$)
3.23
2.80
+16 %
1) For the above reported items, changes in exchange rates had a negative effect of about 7 percent for the Group.
2) Restated to reflect the effect of the discontinued operations within ABB’s former Power Generation segment. A comparison to the figures reported in 1999 can be found in the Appendix.
3) Not comparable to historical reporting as in accordance with International Accounting Standards, capital gains from discontinued operations are reported on a separate line in the income statement and consequently are not included in operating earnings.

“These results clearly show that by transforming our business portfolio and increasing cost-efficiency in our operations, we are creating and sustaining significantly more value,” said ABB President and CEO Göran Lindahl. “Operating earnings, when expressed in local currencies to reflect the real performance of the businesses, once again hit double-digit growth and cash flow also continued to develop positively. And our return on equity reached 34 percent, up about 4 percentage points compared to last year.”

Lindahl said orders were in line with ABB’s expectations, and as economies in emerging markets and Europe continue to grow, the top line should improve further in the second half of the year.

“Our new platform of higher-value businesses, technology leadership and ABB’s strong market positions across the whole range of our businesses will allow us to continue delivering more value to our

shareholders,” he said. Lindahl added that the planned U.S. listing is on schedule for the second half of the year and preparations for the US-GAAP accounting are proceeding well.

ABB’s divestment of its nuclear activities to BNFL and its classical large-scale power generation business to ALSTOM further reduced the technology Group’s asset base.

Continued acquisitions of fast-growing service businesses underscored ABB’s pledge to double its income from service activities. In recent months, ABB streamlined its own ordering processes using Internet technologies and continued to move standard products and services online. ABB created several new initiatives in eBusiness.

Highlights of the results include:
  • The margins were higher in all industrial segments, especially in Automation, where it grew to 8.6 percent up from 6.7 percent in the same period last year. ABB’s increased focus on knowledge and service businesses, ongoing cost reductions, and better price quality led to an increased operating margin of 9.6 percent, up from 8.7 percent. These figures have been restated to reflect the divestitures of ABB’s nuclear business and 50-percent share in ABB ALSTOM POWER – see Appendix for reconciliation..
  • More than 20-percent operating earnings growth in the Power Distribution and Automation segments as a result of the ongoing shift toward more profitable IT and full package solutions.
  • Orders rose in all segments when reported in local currencies, led by a more than 40-percent increase in Oil, Gas and Petrochemicals and a 23-percent increase in Power Distribution.
  • A stronger order backlog, especially in the Power Transmission segment, which will flow through into revenues in the coming quarters.

Revenues were down 6 percent, or slightly up when expressed in local currencies. The company attributed the development to, among other things, last year’s low order intake in the Oil, Gas and Petrochemicals segment and the divestiture of ABB’s standard cables business late last year (reducing revenue growth by about 4 percent).

In local currencies, orders in Europe grew by 14 percent compared to the same period last year and orders for base businesses and services increased by 16 percent. These trends are in line with ABB’s expectation that economic growth in Europe would begin to benefit its order book as of the middle of this year. This will support growth of revenues for the next few quarters for all segments except Oil, Gas and Petrochemicals, which will lag in 2000.

New key ABB technologies were launched onto the market in the first half, including a revolutionary wind power solution, testing systems for the pharmaceutical industry and novel deep-sea technologies.

Several major orders were won in the second quarter, including a US$ 250-million order to build the second phase of a power transmission system connecting electricity networks in Argentina and Brazil, and an US$ 80-million turnkey order to build a new indoor high-voltage substation in downtown London. ABB won a US$ 100-million order in the new alternative energy business from Scottish and Southern Energy, a major utility in the United Kingdom, for ten combined heat and power (CHP) plants.

ABB purchased a leading supplier of distribution transformers in Brazil, through which it is transferring new technology into a key emerging market. The company also concluded the sale of its 50-percent share in ABB ALSTOM POWER to ALSTOM, and the sale of its nuclear activities to BNFL, which contributed US$ 313 million in earnings from discontinued operations i.e. slightly above the 1999 figure for discontinued operations.

Growth in service
ABB continued to expand the service component of its business portfolio. The company acquired a 35 percent stake in the Swedish Export Credit Corporation (SEK). ABB’s investment supports SEK’s ongoing expansion of its product range and geographic base by providing access to new markets through ABB’s existing global network. SEK and ABB will also be able to exchange expertise in capital market activities, structured finance and insurance, and can share information technology resources in areas like credit risk management and market analysis.

ABB also bolstered its service activities in the oil and gas sector with the purchase of Norwegian-based Umoe ASA. Umoe has a long track record in the Norwegian offshore market with a strong focus on modification and maintenance services, including electrical installations. ABB intends to use its global scope to expand Umoe’s activities to the worldwide oil and gas market, while supporting further growth of ABB’s share of the offshore oil and gas service market in general and in particular the Norwegian market.

Smaller service acquisitions were made in other markets, including a company providing diagnostic and maintenance services to process industries in South Africa.

eBusiness
ABB’s approach to eBusiness is to use Internet technologies to build a bridge between the classical and new economies, putting intelligence, efficiency and more functionality into existing products, creating new products, and developing new channels to market.

In the second quarter of 2000, ABB entered an alliance with PaperLoop.com (www.paperloop.com), an online paper industry marketplace, to jointly develop a new Web portal for the pulp and paper industry. ABB said development is aimed at creating a portal to put technical information databases online, offer consulting services via the Web, and provide industrial software that customers can download or use directly online.

In May, ABB acquired a minority stake in Capclear (www.capclear.com), an Internet-based clearinghouse for business-to-business Internet exchanges. Their services minimize risks and reduce transaction costs of Internet trade.

As previously announced, ABB intends to invest US$ 1 billion in Industrial IT, eBusiness and related activities by the end of 2001, and have 30 percent of its standard products and services online by the end of this year and 100 percent by the end of next year. Further, ABB expects to significantly expand its Web-based product and service offerings to a number of key customers this year.

Alternative energy
In June, ABB launched a new business to deliver alternative energy solutions worldwide. Demand for alternative energy sources and small-scale power generation – wind farms, fuel cells, combined heat and power plants using miniature gas turbines – has been sparked by deregulation, forcing power suppliers to put a higher priority on profitability. Small-scale power, because it requires less up-front capital investment, often meets this need better than conventional large power plants. In addition, governments around the world have committed to cut greenhouse gas emissions in line with the 1997 Kyoto Protocol on global warming, which also promotes small-scale alternative energy solutions.

In anticipation of this growing demand, ABB unveiled its new wind power technology, called the WindformerTM. The Windformer will enable the economical development of wind farms with outputs up to 300 megawatts (MW) or more – equivalent to a medium-sized fossil-fuel power plant.

The Windformer also reduces power losses and can be used to connect wind farms directly to larger power grids, even from offshore. ABB is also working with DuPont (USA) to develop a more complete fuel cell solution and Volvo (Sweden) to market a smaller, smarter and more powerful microturbine.

ABB said the US$ 100 million order to build natural gas-fired CHP plants – small-scale units that produce both electricity and heat – over the next 1½ years throughout the U.K., confirmed the move into alternative energy solutions.

Bringing new technologies to market
In addition to breakthroughs in alternative energy, ABB is the leading developer of technology in areas like oil, gas and petrochemicals, sensors and analytical systems, software engineering, power electronics, and microengineering and nanotechnologies.

ABB supplied the drilling riser, wellhead and blowout preventer control system for the world’s deepest subsea well, 2,777 meters beneath the sea off the coast of Brazil. ABB also started up and is operating the world’s first subsea separator at Norsk Hydro’s Troll Field off the coast of Norway. The system separates water from the oil stream and injects it back to the well. It can improve oil recovery rates by as much as 50 percent and reduces environmental impacts, lowering total field investment, operating costs and development time.

In the growing market for analytic systems for food and beverages, and pharmaceuticals, ABB launched infrared testing systems that allow fast sampling of a large number of substances. ABB has applied its micro-engineered catalyst technology to the environmental control field. A test reactor has been installed to improve the performance of a high-dust pollution control unit at a 2000-megawatt (MW) coal-fired power plant in the U.S.

To open new markets in remote monitoring and control of power distribution networks, ABB launched a substation design that boasts an integrated Web server and a wireless communication system. The product allows an operator to monitor and control the substation via the Internet.

ABB’s breakthrough Azipod technology, an electrical propulsion system for ships with a 360-degree steering angle, is now available for smaller ships in the power range up to 5 megawatts (MW). This technology, which helps navigate many of the largest ships around the world, captures both simplicity of design and strength of functionality.

Cash Flow and other key data
In line with ABB’s ongoing efforts to create more value through higher cash flow generation, net cash flow from operating activities increased by 46 percent compared to first six months 1999, reaching US$ 413 million (1999: US$ 282 million).

The return on capital employed for the first six months 2000 reached 17.0 percent (1999: 16.0 percent) and return on equity improved to 34.4 percent (1999: 30.8 percent). The order backlog amounted to US$ 14,906 million at end of June (December 31, 1999: US$ 13,245 million).

The number of employees at the end of June was 161,401 (end of June 1999: 174,601). Adjusted for acquisitions and divestitures, the number of employees decreased by 5 percent.

Segment and regional review
ABB Group reports in U.S. dollars and the strengthening dollar had a major negative effect on the reported figures for the first half year 2000 when translated from local currencies. The following discussion refers to the development in local currencies.

Power Transmission orders rebounded on improved conditions in most major markets during the second quarter. Several large interconnection projects came to fruition and ABB capitalized on increased demand for power transformers and service and support. The operating margin improved to 11.4 percent from 10.5 percent last year. Earnings for the segment were flat, reflecting the divestiture last year of the standard cable business. Deregulation is now beginning to fuel demand in the power transmission market, as it has already done in the power distribution sector. Although demand may be sluggish in the first phase of deregulation, as customers are cautious with investments in an uncertain market, it is expected to grow rapidly in continental Europe. This is especially true in service, retrofit and IT applications, where customers can obtain good return on investments while optimizing the use of existing assets.

Deregulation continued to fuel the Power Distribution business as orders and earnings increased substantially, 23 percent and 25 percent, respectively. Orders were supported by strong demand for intelligent system solutions and transformers. The operating margin increased to 7.5 percent from 6.9 percent last year. Demand for products, services and solutions continued to grow, especially in North America. The business also experienced strong demand in Asia, where economic recovery continues.

Earnings in Automation were up 27 percent, driven by the successful integration of Elsag Bailey, higher value projects and improved demand for instrumentation and control products. The segment also reduced its cost base substantially and continued to improve internal efficiency and quality management. Operating margins were sharply higher, 8.6 percent compared to 6.7 percent for the first six months of 1999. Orders were about 8 percent higher in all major businesses, driven by improved demand in the U.S., Europe and Asia. The product business showed strong growth in all regions, while the large project business was still weak.

Oil, Gas and Petrochemicals' orders continued to surge – up 47 percent – in large part reflecting higher demand in the downstream petrochemicals market. As forecast, earnings suffered from last year’s low order intake. The operating margin was slightly up at 5.8 percent compared to 5.5 percent the first six months of 1999. The increased orders should flow through to revenues in the fourth quarter of this year and in particular in 2001. Higher bidding activity in both upstream and downstream markets indicates that demand should remain robust for the rest of the year.

Earnings for Building Technologies increased 12 percent. Low-voltage products and systems benefited from improved demand. The operating margin reached 7.4 percent compared to 6.8 for the previous year. Orders were up 7 percent, with increased order intake in all business areas, however the service business area lagged in orders and revenues due to periodization of several large full service contracts. The markets in the Asia, Middle East and Africa showed good growth and our markets for installation of Internet and mobile telecommunications systems are growing rapidly. The shift from low-margin general contracting to high-tech installations is continuing.

Financial Services' earnings were in line with last year's level. The segment continued its strategy to invest in fast-growing knowledge and Internet-based businesses. The acquisition of the share of SEK supports the segment's specialization in long-term export finance and finance solutions to sectors such as telecommunications, automotive, transportation, energy, and process industries like pulp and paper and petrochemicals. SEK employs some 90 people and has total assets of approximately US$ 20 billion, mostly representing securities with bank or government guarantees.

European markets continued to improve, with orders up 14 percent in local currencies. Most major markets in Central and Southern Europe showed strong growth. Asia’s orders rebounded during the second quarter, particularly the product business. But over the first six months, orders were down compared to last year, when several large orders were recorded in the corresponding period. The Middle East and Africa showed good growth, with increased activities in product and service businesses. Demand in North America continued to grow, with the liberalization of the power market pushing orders higher. In the deregulated markets of South America, demand continued to grow for regional power interconnections and demand in product businesses improved greatly.

Change in accounting
During the second quarter of 2000, ABB disposed of the former Power Generation segment, which included its investment in ABB ALSTOM POWER N.V. and its nuclear business. According to International Accounting Standards (IAS), disposing of a business segment should be accounted for as discontinued operations. Accordingly, the after-tax income of the former Power Generation segment has been combined into a single line in the Income Statement called “Income from discontinued operations, net of tax” for both 2000 and 1999, respectively. Also included in this line are capital gains, net of tax, from the disposition of the Power Generation segment (in 2000 and 1999) and Adtranz (in 1999), previously reported in Operating Earnings as “unusual items.”

Outlook
For the full-year 2000, ABB’s orders are expected to show a good increase. Revenues in the second half are expected to increase compared to the same period last year. Operating earnings are expected to increase from last year's level and net income will continue to be well above 1999's performance. Cash flow from operating activities is expected to grow faster than operating earnings as the Value Based Management initiative, including the capital reduction program, is further gaining pace. The power generation and nuclear divestitures do not affect the outlook negatively for this year, nor the longer-term targets of 6-7 percent average annual growth during 2000-2003 and an operating margin of 12 percent by 2003.

The ABB Group serves customers in power transmission and distribution; automation; oil, gas, and petrochemicals; building technologies; and in financial services. With novel IT applications, tailored software solutions, growing eBusiness and a fast-expanding knowledge and service base, ABB is building links to the new economy. The ABB Group employs about 160,000 people in more than 100 countries.

This press release includes forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for ABB Ltd and ABB Ltd’s lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are major markets for ABB’s businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, and fluctuation in currency exchange rates. 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.


ABB Group

Consolidated Income Statement

(US$ in millions)Notes
Year to date
January - June
April - June
2000
1999 1)
2000
1999 1)
Revenues
10,762
11,505
5,689
6,117
Material expenses
-4,410
-4,759
-2,413
-2,564
Personnel expenses
-3,511
-3,721
-1,759
-1,804
Other expenses
-1,677
-1,870
-953
-1,030
Changes in work in progress and finished goods
200
215
72
-40
Depreciation of fixed assets
-373
-409
-186
-208
Unusual items
47
41
23
28
Operating Earnings after Depreciation
1,038
1,002
473
499
Earnings from equity accounted companies
6
-2
6
0
Dividend income
8
7
5
4
Interest income
186
192
81
126
Interest expense
-306
-350
-139
-161
Exchange differences
18
9
18
6
Income from continuing operations before taxes and minority interest
950
858
444
474
Income taxes
-276
-253
-121
-129
Income from continuing operations before minority interests
674
605
323
345
Minority interests
-17
-10
-14
-8
Net Income from continuing operations
657
595
309
337
Income from discontinued operations, net of tax
1, 5
313
244
280
200
Net income
970
839
589
537
Basic and diluted earnings per share, in US$ 2)
3.23
2.80
1.96
1.79

1) Restated to reflect the effect of the discontinued operations as described in Notes 1 and 5.
2) Calculation based on 300,002,358 registered shares.

ABB Group

Condensed Consolidated Balance Sheet

(US$ in millions)
Note
June 30, 2000June 30, 1999 1)Dec. 31, 1999 1)
Assets
Cash and cash equivalents
6,809
7,026
6,288
Other current assets
11,542
11,583
11,591
Total current assets
18,351
18,609
17,879
Fixed assets
10,476
11,395
11,456
Total Assets
28,827
30,004
29,335
Liabilities and Equity
Current liabilities
3
14,747
17,597
15,893
Non-current liabilities
3
8,140
7,132
7,517
Minority interests
274
338
317
Stockholders’ equity
5,666
4,937
5,608
Total Liabilities and Equity
28,827
30,004
29,335

1) Restated to reflect the effect of the discontinued operations as described in Notes 1 and 5.



Condensed Statement of Changes in Equity

(US$ in millions)
Note
January – June
2000 1999
Equity as of December 31, previous year

(1999 and 1998, respectively)

5,608
5,959
Inclusion of ABB AB and ABB AG
--
34
Changes in accounting principles and other items 1)
-23
-893
Adjustment for treasury shares 2)
-184
--
Dividend payments
-541
-503
Translation differences
4
-164
-499
Net income (6 months)
970
839
Equity as of June 30

(2000 and 1999, respectively)

5,666
4,937

1) Introduction in 1999 of revised IAS 19 on employee benefits.
2) Represents the total purchase price of ABB Ltd shares owned by Group companies at June 30, 2000. These treasury shares are netted against equity following the introduction of IAS SIC 16.


ABB Group

Condensed Consolidated Statement of Cash Flows
(US$ in millions)
Year to date
January - June
2000 1999 1)
Cash Flow from Operating Activities
Income from continuing operations before taxes and minority interest 2)
950
858
Adjustments of earnings to operating cash
73
-44
Changes in operating assets and liabilities
-455
-384
Taxes paid
-155
-148
Net Cash Flow from Operating Activities
413
282
Cash Flow related to Investing Activities
-1,011
-2,115
Cash Flow related to Financing Activities
-446
-39
Cash provided from sale of discontinued operations
1,682
1,972
Effects of translation differences on cash and cash equivalents
-117
-338
Net Change in Cash and Cash Equivalents
521
-238
Cash and cash equivalents - beginning of year
6,288
7,264
Cash and cash equivalents - end of interim period
6,809
7,026

1) Restated to reflect the effect of the discontinued operations as described in Notes 1 and 5.
2) Actual interest received/paid does not differ materially from “Interest Income/Expense” as included in income from continuing operations before taxes and minority interest and is thus not explicitly shown in the above presentation.


Selected Notes to the Consolidated Financial Statements

Note 1, General and Scope of Consolidation

The Group's accounting principles are based on International Accounting Standards (IAS) in effect for financial periods beginning on January 1, 2000. The Principles for Consolidated Financial statements are described in the 1999 year-end Consolidated Financial Statements of ABB. The interim report and notes are unaudited.

Discontinued operations
During the second quarter 2000, ABB disposed of its former Power Generation Segment, which included its nuclear business (refer to Note 5) and its investment in ABB ALSTOM POWER NV . The after tax income of the disposed segment is shown in a single caption as discontinued operations both in the 2000 and 1999 six months figures.

Note 2, Geographic and Segment Information

Data per Region
(US$ in millions)
Orders Received
January – June
2000 19991)
Revenues

January – June
2000 1999 1)
Europe
7,297
7,151
5,963
6,549
The Americas
3,303
2,525
2,585
2,651
Asia
1,473
1,703
1,340
1,318
Middle East and Africa
1,374
1,301
874
987
Total
13,447
12,680
10,762
11,505
Data per Business Segment
(US$ in millions)
Orders Received
January – June
2000 19991)
Revenues

January – June
2000 1999 1)
Power Transmission
2,156
2,162
1,642
1,913
Power Distribution 2)
1,733
1,467
1,415
1,283
Automation 2)
4,340
4,291
3,614
3,874
Oil, Gas and Petrochemicals
1,995
1,419
1,215
1,479
Building Technologies
3,372
3,425
2,887
3,030
Financial Services
366
365
366
365
Various Activities/Corporate 2)
875
986
824
938
Sub-total
14,837
14,115
11,963
12,882
Intra-Group Transactions
-1,390
-1,435
-1,201
-1,377
Total
13,447
12,680
10,762
11,505

1) Restated to reflect the effect of the discontinued operations as described in Notes 1 and 5 as well as the cancellation of an order in the Power Distribution segment.
2) The Distributed Power business has been moved from Various Activities to the Power Distribution segment. The nuclear activities in the Automation segment were included in the sale to BNFL. 1999 figures are restated accordingly.


Data
Per Business Segment
(US$ in millions)
Operating Earnings after Depreciation
January – June
2000 19991)
EBITDA 3)


January – June
2000 1999 1)
Power Transmission
188
201
232
253
Power Distribution 2)
106
88
137
118
Automation 2)
311
258
439
359
Oil, Gas and Petrochemicals
71
81
100
108
Building Technologies
215
207
276
276
Financial Services
176
187
187
196
Various Activities/Corporate 2)
-29
-20
42
101
Total
1,038
1,002
1,413
1,411

1) Restated to reflect the effect of the discontinued operations as described in Notes 1 and 5.
2) The Distributed Power business has been moved from Various Activities to the Power Distribution segment. The nuclear activities in the Automation segment were included in the sale to BNFL. 1999 figures are restated accordingly.
3) Earnings Before Interest, Taxes, Depreciation and Amortization.

Note 3, Short-, medium-, long-term loans

(US$ in millions)June 30, 2000June 30, 1999 1) Dec. 31, 1999 1)
Loans
Short-term loans
3,212
5,281
2,910
Medium- and long-term loans
4,124
2,545
3,215
Total loans
7,336
7,826
6,125

1) Restated to reflect the effect of the discontinued operations as described in Notes 1 and 5.

Note 4, Main Exchange Rates

Average
January - June
2000 1999
As of
June 30
2000 1999
As of
December 31
1999
Euro US$ 1.00 = EUR
1.04
0.92
1.04
0.97
1.00
German markUS$ 1.00 = DEM
2.04
1.80
2.04
1.89
1.95
Swedish kronaUS$ 1.00 = SEK
8.78
8.25
8.78
8.47
8.53
Swiss francUS$ 1.00 = CHF
1.66
1.47
1.63
1.55
1.60

For the first six months of 2000, changes in exchange rates had a negative effect on the reported Income Statement items of about 7 percent compared to the same period last year. The balance sheet figures were reduced on average approximately by 3 percent due to the strengthening of the dollar when compared to December 31, 1999 and 4 percent when comparing to June 30, 1999.

Note 5, Disposal of Power Generation activities, including the nuclear business and Adtranz

In the first quarter of 1999, ABB completed the sale of its 50% participation in ABB Daimler Benz Transportation to DaimlerChrysler. Effective June 30, 1999, ABB formed a joint venture with ALSTOM, ABB ALSTOM POWER NV, by contributing the net assets of its power generation business (excluding nuclear and distributed power).

During the second quarter 2000, ABB sold its 50% participation in the joint venture ABB ALSTOM POWER NV to ALSTOM for a cash consideration of Euro 1.25 billion and its nuclear business to BNFL for a cash consideration of US$ 485 million.

In the consolidated financial statements, all the above transactions are reflected in the caption discontinued operations.

Summarized below are the Income Statement of the former Power Generation segment, including the nuclear business, of January-June 1999 and the Balance Sheet of the nuclear business as per December 31, 1999.

Income Statement
(US$ in millions)
Year to date
January - June

1999 1)

Revenues
Revenues
3,736
Expenses, changes in work in progress, depreciation
-3,638
Unusual items
-32
Operating Earnings after Depreciation
66
Finance net
-3
Income/loss before Taxes
63
Taxes and minority interests
-19
Net Income
44

1) Figures referring to the former Power Generation segment.


Balance Sheet
(USD in millions)
December 31
1999 1)
Current assets
301
Fixed assets
166
Total Assets
467
Current liabilities
135
Non-current liabilities
246
Stockholders’ equity
86
Total Liabilities and Equity
467

1) Figures referring to the nuclear business contained in the Annual Report 1999.


Appendix

ABB Group

Consolidated Income Statement

Reported and restated figures for 1999 to reflect the effect of the accounting for the discontinued operations.

(US$ in millions)
Year to date
January - June
Year to date
April - June
1999 1)
1999 2)
1999 1)
1999 2)
Revenues
11,505
11,778
6,117
6,258
Material expenses
-4,759
-4,803
-2,564
-2,566
Personnel expenses
-3,721
-3,827
-1,804
-1,893
Other expenses
-1,870
-1,923
-1,030
-1,000
Changes in work in progress and finished goods
215
214
-40
-46
Depreciation of fixed assets
-409
-419
-208
-213
Unusual items
41
281
28
233
Operating Earnings after Depreciation
1,002
1,301
499
773
Earnings from the defined power generation business
--
51
--
46
Earnings from equity accounted companies
-2
-2
0
0
Dividend income
7
7
4
4
Interest income
192
192
126
111
Interest expense
-350
-353
-161
-165
Exchange differences
9
9
6
7
Income from continuing operations before taxes and minority interests
858
1,2053)
474
776 3)
Income taxes
-253
-356
-129
-230
Income from continuing operations before minority interests
605
8494)
345
5464)
Minority interests
-10
-10
-8
-9
Net Income from continuing operations
595
337
Income from discontinued operations, net of tax
244
200
Net income
839
839
537
537

1) Restated to reflect the effect of the discontinued operations.
2) As reported, June 30, 1999
3) Previously called Income before taxes
4) Previously called Net income before minority interests

    •   Cancel
      • Twitter
      • Facebook
      • LinkedIn
      • Weibo
      • Print
      • Email
    •   Cancel
    seitp222 c1256c290031524bc1256922002306a6