Parent Companies' Financial Results - ABB AG (Switzerland)

Parent Companies' Financial Results

ABB AG (Switzerland) and associated company

Since the 1996 Annual General Meeting, BBC Brown Boveri AG has changed its name to ABB AG. ABB AG's main asset is its 50-percent ownership interest in ABB Asea Brown Boveri Ltd, Zurich, Switzerland (ABB). ABB is reported 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

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 AG and associated company's earnings, ABB AG's 50-percent share of ABB Group's earnings is translated from US$ to SFr.

ABB AG's share of ABB Group's earnings before taxes and after minority interests for the first nine months of 1996 is US$ 670 million (US$ 563 million for the corresponding period in 1995), an increase of 19 percent. The US dollar has slightly firmed from 1995 to 1996 which affected the results positively when translating them into SFr. In SFr., ABB AG's share in ABB's earnings increased by 21 percent, from SFr. 669 million to SFr. 811 million.

ABB AG's own contribution before taxes from cash management activities amounted to SFr. 18 million. This is clearly below the SFr. 37 million of the first nine months of 1995 which was boosted by very favorable financial markets.

Net income increased by 20 percent compared with the same period in 1995.

ABB AG Income Statement (consolidated)

(Swiss francs in millions) 1-9/96 1-9/95 1995
Share in ABB Group earnings
(before taxes and after minority)
811 669 1,208
Administrative costs, ABB AG -6 -4 -6
Interest Income, ABB AG 32 49 67
Interest Expense, ABB AG -8 -8 -11
Income before taxes 829 706 1,258
Taxes paid -194 -160 -265
Deferred taxes -130 -125 -171
Net income 505 421 822

Earnings per ABB AG bearer share, SFr 55.40 47.75 90.20
Currency rate: 1.00 US$ = SFr 1.21 1.19 1.18

ABB AG, the parent company

Income before taxes amounted to SFr. 278 million (SFr. 221 million in 1995). In addition to ABB AG's own contribution, the figures mainly include the dividend received from ABB Asea Brown Boveri Ltd in 1996.

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    Contact us

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