Parent Companies' Financial Results - ABB AB (Sweden)

Since the 1996 Annual General Meeting, ASEA's official name has been changed to ABB AB. ABB AB's main asset is its 50-percent ownership interest in ABB Asea Brown Boveri Ltd., Z|rich, Switzerland (ABB). As a result, ABB AB is no longer a corporate group nor does it conduct any operations, but is solely a management company with ABB as an associated company. For a full report on the development of the ABB Group, refer to the first part of this release.

Consolidated earnings and equity

ABB's companies throughout the world report their income and financial position in local currencies, which are then translated to US$ to establish the ABB Group's consolidated accounts. In order to compute ABB AB and associated company's earnings and stockholders' equity, ABB AB's 50-percent share of ABB earnings and equity are translated from US$ to Swedish Krona (SKr).

ABB AB's share of ABB Group's earnings before taxes and after minority for the first half of 1996 is US$ 464 million (US$ 391 million for the corresponding period 1995) an increase of 19%. The US dollar has weakened from 1995 to 1996 against the SKr which has a negative effect when translating ABB AB's share in the ABB earnings. In SKr ABB AB's share in ABB's earnings increased by 9% from SKr 2,878 million to SKr 3,132 million.

ABB AB Income Statement (consolidated)

(Swedish Krona in millions) 1-6/96 1-6/95 1995
Share in ABB Group earnings
(before taxes and after minority)
3,132 2,878 7,281
Administrative costs, ABB AB -14 -14 -21
Interest Income, ABB AB 22 18 31
Interest Expense, ABB AB -1 -2 -3
Income before taxes 3,319 2,880 7,288
Taxes paid -742 -662 -1,561
Deferred taxes -513 -545 -1,045
Net income 1,884 1,673 4,682

Earnings per ABB AB Share, Skr 20.10 18.35 49.90
Currency rate: 1.00 US$ = Skr 6.75 7.36 7.11


ABB AB Balance Sheet (consolidated)

Assets
(Swedish Krona in millions)
30-06-96 30-06-95 31-12-95
Cash and marketable securities 176 209 215
Other current assets 3 2 4
Shareholding in ABB Asea Brown Boveri Ltd. 17,492 14,520 17,485
Other fixed assets 4 7 7
Total Assets 17,675 14,738 17,711
Liabilities and stockholders' equity
Short-, medium- and long-term loans 7 52 51
Other liabilities 2 4 5
Stockholders' equity 17,666 14,682 17,655
Total liabilities and stockholders' equity 17,675 14,738 17,711
Equity per ABB AB share, Skr 188.35 161.05 188.25
Currency rate: 1.00US$ = Skr 6.66 7.28 6.67

ABB AB, the parent company

Income before taxes amounted to SKr 15 million (SKr 1,146 million in 1995). The dividend for the fiscal year 1995 was anticipated in the 1995 accounts and thus only the difference between dividend actually received and dividend anticipated is included for the first six months of 1996.


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    Contact us

    Page information:
    • Mr. John Fox
      ABB Corporate Communications, Zurich
      Tel. +41 1 317 7371
      Fax. +41 1 317 7958
    • Ms. Ann-Sofie Joensson
      ABB Investor Relations, Zürich
      Tel. +41 1 317 7338
      Fax. +41 1 311 9817
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