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 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.
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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.
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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 22, 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).
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Press Release |
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Short-cycle recovery, cost take-out lift ABBs Q2 results
· Orders up 5%(1), base orders 15% higher
· Revenues down 5%, pace of decline slows versus previous quarter
· Operational performance lifted by more than $400 million savings in the quarter
Zurich, Switzerland, July 22, 2010 ABBs orders grew 5 percent in the second quarter of 2010, led by increases of more than 20 percent in each of the companys automation divisions on the strength of the global economic recovery.
Industrial customers continued to invest in energy-efficient automation and power solutions to increase productivity and quality. Investments by utilities in large power transmission projects, however, remained cautious in most regions. As a result, base orders (below $15 million) grew 15 percent in local currencies while large orders (above $15 million) declined by 37-percent. The order backlog has grown 5 percent since the beginning of the year.
Revenues were 5 percent lower than the year-earlier period, mainly due to order declines in 2009 and the beginning of 2010 that flowed through to sales in the second quarter.
Earnings before interest and taxes (EBIT) decreased to $975 million, resulting in an EBIT margin of 12.9 percent. Included in EBIT are additional project costs in the Power Systems division of $80 million. Excluding net losses on derivative transactions and restructuring-related costs, the EBIT margin was 14.6 percent(2). Savings in the quarter of more than $400 million from the companys cost take-out program played a key role in maintaining profitability.
Cash from operations in the quarter was $649 million, down versus the same quarter a year earlier, while net income amounted to $623 million.
The strong second quarter results show how we are using our improved cost base and leading position in key industrial markets to take maximum advantage of the global economic recovery, said Joe Hogan, ABBs CEO. Its the great strength of ABBs portfolio that automation can drive profitable growth during a period of lower power demand.
We feel more confident about the recovery in most of our markets than three months ago and believe that our short-cycle businesses will continue to perform well over the rest of 2010. After the severe industrial recession of the last two years, customers have started again to invest in technologies for energy efficiency and productivity. We expect customer capital expenditures, especially on the power side, to recover later in 2010 and into 2011, Hogan said.
2010 Q2 key figures
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Change |
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||
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$ millions unless otherwise indicated |
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Q2 10 |
|
Q2 09 |
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US$ |
|
Local |
|
|
Orders |
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7,665 |
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7,309 |
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5 |
% |
5 |
% |
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Order backlog (end June) |
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24,437 |
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25,913 |
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-6 |
% |
-3 |
% |
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Revenues |
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7,573 |
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7,915 |
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-4 |
% |
-5 |
% |
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EBIT |
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975 |
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1,047 |
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-7 |
% |
|
|
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as % of revenues |
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12.9 |
% |
13.2 |
% |
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|
|
|
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Net income |
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623 |
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675 |
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-8 |
% |
|
|
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Basic net income per share ($) |
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0.27 |
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0.30 |
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|
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|
|
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Cash flow from operating activities |
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649 |
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1,067 |
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|
|
|
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(1) Management discussion of orders and revenues focuses on local currency changes. U.S. dollar changes are reported in the results tables.
(2) Please refer to Appendix I
Summary of Q2 2010 results
Orders received and revenues
Demand for ABBs industrial products and solutions continued to improve in the second quarter, reflecting the ongoing economic recovery in most regions. Capital spending by power utilities remained cautious. In both power and automation, most customer investments focused on improving the productivity and efficiency of their existing operations. Large capital expenditures to build new capacity remained at low levels.
Regionally, the largest order increase came in the Middle East and Africa (up 27 percent in local currencies) on higher demand mainly in the minerals and oil and gas sectors. Orders were also higher in Europe, led by a 7-percent increase in western Europe. Asia orders were higher, driven mainly by the need for industrial automation equipment. Orders in China were up 8 percent but declined 41 percent in India. Orders decreased in the Americas, where a 21-percent order increase in the U.S. led by a 52-percent increase in Discrete Automation and Motion was more than offset by lower power orders, mainly in Mexico and Brazil.
Orders in emerging markets were unchanged in local currencies in the second quarter compared to the same quarter a year ago and comprised 51 percent of total orders received.
Large orders as a share of total orders amounted to 11 percent, compared to 19 percent in the year-earlier period. Service orders grew in line with total orders and were up 6 percent in local currencies.
The order backlog at the end of June was $24 billion, a local-currency increase of 5 percent since the beginning of the year and unchanged compared to the end of the previous quarter.
Revenues decreased by 5 percent in local currencies as lower orders received during 2009 and the beginning of 2010, especially in ABBs longer cycle businesses, were converted into sales. Compared to the first quarter of 2010, revenues increased 13 percent. Revenues were up 15 percent in Low-Voltage Products, reflecting the stronger recovery in its short-cycle end markets. Delays in the execution of some large projects contributed to the revenue decrease in the two power divisions. Service revenues were 5 percent higher in the quarter in local currencies compared to the second quarter of 2009.
Earnings before interest and taxes and net income
Included in EBIT in the second quarter is a negative impact of approximately $60 million from losses on derivatives and foreign exchange movements on receivables and payables. Restructuring-related costs amounted to approximately $70 million in the quarter.
Excluding these impacts in the respective periods, the EBIT margin in the second quarter of 2010 increased to 14.6 percent.
The improvement was driven primarily by higher margins in the automation businesses on a combination of volume growth, a favorable product mix and cost reduction benefits. Successful cost take-out measures allowed the Power Products division to maintain its EBIT margin excluding net losses on derivative transactions and restructuring-related costs at the same level as the year before. Power Systems EBIT margin was lower as the result of project costs related to a small number of subsea cable orders.
Net income for the quarter developed in line with EBIT and resulted in basic earnings per share of $0.27 compared to $0.30 in the year-earlier period.
Cost reductions
ABB continues to implement a cost take-out plan aimed at sustainably reducing 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. The program focuses on optimizing global sourcing, improving internal processes and adjusting ABBs global manufacturing and engineering footprint to reduce costs, increase our competitiveness and better match shifts in customer demand.
Savings in the second quarter exceeded $400 million, bringing the total for the program to date to approximately $2.3 billion. Costs for the full year 2010 are now expected to reach $350-400 million, compared to earlier estimates of $500 million. Costs associated with the program in the second quarter of 2010 amounted to approximately $70 million and total program costs to date amount to approximately $700 million.
Balance sheet and cash flow
Net cash at the end of the second quarter was $5.9 billion compared to $7.1 billion at the end of the previous quarter and $5.7 billion at the end of the second quarter of 2009. Cash from operating activities decreased in the quarter but was slightly higher for the first six months compared to the previous year. Cash payments in the quarter related to the companys cost take-out program amounted to approximately $60 million.
Net cash used in investing activities includes a payment of more than $1 billion for the acquisition during the second quarter of Ventyx, a U.S.-based software provider to global energy, utility, communications, and other asset-intensive businesses.
In May, ABB also announced an offer to shareholders of ABB Limited, its publicly-listed subsidiary in India, of Rs. 900 per share in order to increase its stake in the company from approximately 52 percent to 75 percent. The potential total value of the transaction, if accepted, is approximately Rs. 44 billion ($965 million based on foreign exchange rates at the time of the announcement). The offer began on July 8, 2010 and is expected to end on July 27, 2010, with payment for the shares expected to take place on August 10, 2010.
On April 26, ABBs Annual General Meeting approved the payment of a dividend in the form of a nominal value reduction of Sfr. 0.51 per share. The dividend payment date was July 15 for shares purchased through the SIX Swiss Exchange, July 19 for shares purchased through the NASDAQ OMX Stockholm Exchange and July 22 for American Depositary Shares purchased through the New York Stock Exchange.
Also as approved at the Annual General Meeting, approximately 23 million shares were cancelled in July following the end of the share repurchase program launched in 2008.
Compliance
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 regarding their investigations into certain alleged anti-competitive practices. With respect to these matters, there could be adverse outcomes beyond our provisions.
Management changes
In June, ABB announced the retirement of Anders Jonsson, a member of the ABB Executive Committee since 2006, effective as of the end of July 2010, after 34 years with the company. In his current position, Jonsson has been responsible for monitoring and coordinating ABBs overall cost reduction and global footprint programs. These responsibilities will be assumed by the companys head of quality and operational excellence who reports directly to ABBs CEO.
Outlook
The sequential quarterly growth of base orders since the middle of 2009 appears to confirm that ABB has seen the bottom of its short-cycle businesses. Industrial customers are spending more on automation and power equipment and solutions to increase the efficiency and productivity of their existing assets. Assuming a continuation of the current economic recovery in most regions, the company is confident that its short-cycle business will continue to support both top and bottom line growth over the remainder of the year.
For ABBs late-cycle businesses, which make up the majority of the portfolio and which are driven by customer capital expenditure, the outlook for the remainder of 2010 remains mixed.
Upgrades and expansions of existing power infrastructure are needed in all regions, including renewables and smart grids. This is reflected in a near-record level of tendering activity in the Power Systems business. At the same time, lower electricity consumption in some regions has slowed the pace of power project awards in the short term. Furthermore, increased competition in the power sector continues to weigh on demand.
On the industrial side, ABB saw higher demand in the second quarter from some later-cycle sectors, such as minerals, pulp and paper and marine. Most customer spending in these industries, however, is focused on equipment upgrades, replacement and service rather than capital expenditures for new capacity.
The company believes it is well positioned to benefit from a sustained economic recovery. Growth initiatives are under way in selected business and countries, mainly in emerging markets. Significant fixed costs have been eliminated since the end of 2008, increasing the potential for incremental margin expansion as demand returns. Spending on research and development has remained steady through the downturn in order to secure the companys technological leadership, and will continue.
Therefore, in the remainder of 2010 management will continue to 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.
Divisional performance Q2 2010
Power Products
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Change |
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||
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$ millions unless otherwise indicated |
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Q2 10 |
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Q2 09 |
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US$ |
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Local |
|
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Orders |
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2,480 |
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2,760 |
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-10 |
% |
-11 |
% |
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Order backlog (end June) |
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7,796 |
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8,664 |
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-10 |
% |
-9 |
% |
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Revenues |
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2,528 |
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2,839 |
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-11 |
% |
-12 |
% |
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EBIT |
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417 |
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555 |
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-25 |
% |
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|
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as % of revenues |
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16.5 |
% |
19.5 |
% |
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|
|
|
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Cash flow from operating activities |
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384 |
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534 |
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Orders declined due to continued low spending by utilities on transmission projects, resulting in a decrease of more than 70 percent in large orders. This more than offset increased demand from industrial end-markets and some recovery in power distribution. Base orders decreased 5 percent versus the same period a year ago. Compared to the first quarter of 2010, however, base orders grew by 11 percent in local currencies.
Orders were lower in all regions, although early signs of recovery from low levels in the power distribution business supported steady order intake in western Europe and North America. Orders decreased in China as a result of lower utility spending on large projects and increased local competition.
Revenues decreased in the quarter, primarily as a result of lower order intake in the preceding quarters and continued delays by customers in accepting product delivery.
EBIT was lower than the same period a year earlier, reflecting lower revenues and a negative impact from net losses on derivatives. EBIT margin, adjusted for both derivatives and restructuring, was roughly the same in both years, as cost savings compensated for under absorption and price declines.
Power Systems
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Change |
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$ millions unless otherwise indicated |
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Q2 10(1) |
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Q2 09 |
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US$ |
|
Local |
|
|
Orders |
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1,354 |
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1,697 |
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-20 |
% |
-19 |
% |
|
Order backlog (end June) |
|
9,128 |
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8,918 |
|
2 |
% |
5 |
% |
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Revenues |
|
1,635 |
|
1,612 |
|
1 |
% |
0 |
% |
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EBIT |
|
18 |
|
122 |
|
-85 |
% |
|
|
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as % of revenues |
|
1.1 |
% |
7.6 |
% |
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|
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|
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Cash flow from operating activities |
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-65 |
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230 |
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(1) Power Systems Q2 2010 results reflect the contribution from the Ventyx acquisition as of June 1, 2010
Increased base orders on higher demand from industrial customers in the quarter was offset by lower large orders, reflecting the timing of project awards. Project tendering activity in power transmission achieved new record levels, as the need remains in all regions for new grid capacity and upgrades, regional interconnections and the integration of renewable energies.
Revenues were stable compared to the same quarter a year ago, supported by the execution of the large order backlog.
EBIT was negatively impacted by costs of approximately $80 million associated with installation issues in a small number of cable projects. These charges more than offset savings from cost reduction measures.
The reduction in cash from operations primarily reflects the timing of customer payments.
ABB completed its acquisition of Ventyx in the second quarter and consolidated its financial results into the divisional results effective June 1, 2010. The impact of the acquisition on orders, revenues and EBIT in the quarter was not significant.
Discrete Automation & Motion(1)
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Change |
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||
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$ millions unless otherwise indicated |
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Q2 10 |
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Q2 09 |
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US$ |
|
Local |
|
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Orders |
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1,476 |
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1,195 |
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24 |
% |
24 |
% |
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Order backlog (end June) |
|
3,223 |
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3,442 |
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-6 |
% |
-4 |
% |
|
Revenues |
|
1,287 |
|
1,354 |
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-5 |
% |
-5 |
% |
|
EBIT |
|
205 |
|
190 |
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8 |
% |
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|
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as % of revenues |
|
15.9 |
% |
14.0 |
% |
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|
|
|
|
Cash flow from operating activities |
|
154 |
|
255 |
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|
(1) Appendix II provides historical results for all divisions following the previously announced realignment of ABBs automation business
Orders increased substantially in the quarter reflecting the industrial recovery in early cycle businesses across all regions. Base orders were almost 40 percent higher in local currencies versus the same quarter a year earlier, while large orders declined. Order growth was strongest in robotics and low-voltage drives and motors. Orders grew in all regions, led by strong double-digit local-currency growth in China, the U.S. and Germany.
Revenues declined in the quarter, although at a slower pace than in the first quarter of the year. This mainly reflects the low opening order backlog in the machines business, which serves later cycle markets. Revenues in most other businesses were close to the previous years level.
The improvement in EBIT and EBIT margin is mainly the result of a breakeven result in the robotics business compared to a loss in the same quarter of 2009. The EBIT margin also benefited from cost saving measures and a favorable product mix.
Low-Voltage Products(1)
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Change |
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$ millions unless otherwise indicated |
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Q2 10 |
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Q2 09 |
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US$ |
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Local |
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Orders |
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1,219 |
|
1,017 |
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20 |
% |
22 |
% |
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Order backlog (end June) |
|
879 |
|
805 |
|
9 |
% |
13 |
% |
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Revenues |
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1,102 |
|
977 |
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13 |
% |
15 |
% |
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EBIT |
|
213 |
|
95 |
|
124 |
% |
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as % of revenues |
|
19.3 |
% |
9.7 |
% |
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|
|
Cash flow from operating activities |
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121 |
|
151 |
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|
(1) Appendix II provides historical results for all divisions following the previously announced realignment of ABBs automation business
The strong improvement in orders received in the quarter reflects continuing demand growth from both construction and industry customers across all regions. Orders were up in all product businesses. Orders grew at a double-digit pace in all regions, with the largest increase in the Americas. Orders were up more than 30 percent in Asia, including a strong double-digit increase in China in local currencies. Orders also grew at a strong double-digit pace in Italy, South Korea and Saudi Arabia.
Revenues grew in line with orders, as most sales are booked in the same quarter in which orders are placed. Service revenues grew by 30 percent in local currencies in the second quarter versus the second quarter in 2009.
EBIT and EBIT margin increased on higher revenues, a positive product mix and the impact of cost saving measures. The increase also reflects the non-recurrence of restructuring-related charges taken in the prior-year period of approximately $40 million. Excluding net losses on
derivative transactions and restructuring-related costs in both periods, the EBIT margin in the second quarter of 2010 was approximately 6 percentage-points higher than in the year-earlier quarter.
Process Automation
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Change |
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$ millions unless otherwise indicated |
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Q2 10 |
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Q2 09(1) |
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US$ |
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Local |
|
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Orders |
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1,825 |
|
1,452 |
|
26 |
% |
25 |
% |
|
Order backlog (end June) |
|
5,585 |
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6,565 |
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-15 |
% |
-12 |
% |
|
Revenues |
|
1,737 |
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1,981 |
|
-12 |
% |
-12 |
% |
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EBIT |
|
189 |
|
166 |
|
14 |
% |
|
|
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as % of revenues |
|
10.9 |
% |
8.4 |
% |
|
|
|
|
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Cash flow from operating activities |
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143 |
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53 |
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(1) Q2 2009 results include the instrumentation business transferred to Process Automation as part of the previously-announced realignment of ABBs automation business
Orders increased in the quarter as demand improved, driven primarily by the developing economies. Base orders grew by more than 20 percent in local currencies while large orders increased by more than 30 percent from the low levels of the year-earlier period.
The strongest order growth was recorded in minerals, pulp and paper, marine and turbocharging. Oil, gas and petrochemicals orders remained at the same high level as the second quarter of 2009. Orders from the Middle East and Africa more than tripled in the quarter due to large customer investments in minerals and oil and gas. Asia grew by almost 40 percent on higher orders from metals, minerals and marine customers. Orders in the Americas increased by more than 10 percent in local currencies on higher demand from the minerals and oil and gas sectors.
Lower revenues reflect the decrease in orders in 2009. Lower revenues in the system business were partly offset by a double digit increase in turbocharging and industrial service revenues. EBIT and EBIT margin improved due to the cost take-out program and a larger proportion of higher-margin service and product sales in total revenues compared to the same quarter a year earlier.
More information
The 2010 Q2 results press release is available from July 22, 2010, on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations, where a presentation for investors will also be published.
ABB will host a media conference call starting at 10:00 a.m. Central European Time (CET). U.K. callers should dial +44 20 7107 0611. From Sweden, +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 (1) 866 416 2558 (U.S./Canada). The code is 10133, followed by the # key.
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 +1 412 858 4600 (from the U.S./Canada) or +41 91 610 56 00 (Europe and the rest of the world). Callers are requested to phone in 15 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 commencing one hour after the conference call. Playback numbers: +1 866 416 2558 (U.S./Canada) or +41 91 612 4330 (Europe and the rest of the world). The code is 15754, followed by the # key.
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Investor calendar 2010 |
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Capital Markets Day 2010 |
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Sept. 10, 2010 |
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Q3 2010 results |
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Oct. 28, 2010 |
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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, July 22, 2010
Joe Hogan, CEO
Important notice about forward-looking information
This press release includes forward-looking information and statements including the sections entitled Cost reductions, Compliance, and Outlook, 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 weakened global economy and political conditions, costs associated with compliance activities, raw materials availability and prices, 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:
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Media Relations: |
Investor Relations: |
ABB Ltd |
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Thomas Schmidt, Wolfram Eberhardt |
Switzerland: Tel. +41 43 317 7111 |
Affolternstrasse 44 |
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(Zurich, Switzerland) |
USA: Tel. +1 203 750 7743 |
CH-8050 Zurich, Switzerland |
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Tel: +41 43 317 6568 |
investor.relations@ch.abb.com |
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Fax: +41 43 317 7958 |
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media.relations@ch.abb.com |
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ABB Q2 and half-year 2010 key figures
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Change |
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Change |
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||||||
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$ millions unless otherwise indicated |
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Q2 10 |
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Q2 09 |
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US$ |
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Local |
|
H1 10 |
|
H1 09 |
|
US$ |
|
Local |
|
||
|
Orders |
|
Group |
|
7665 |
|
7309 |
|
5 |
% |
5 |
% |
15732 |
|
16459 |
|
-4 |
% |
-8 |
% |
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|
|
Power Products |
|
2480 |
|
2760 |
|
-10 |
% |
-11 |
% |
4881 |
|
5720 |
|
-15 |
% |
-19 |
% |
|
|
|
Power Systems |
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1354 |
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1697 |
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-20 |
% |
-19 |
% |
3112 |
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3976 |
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-22 |
% |
-26 |
% |
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|
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Discrete Automation & Motion |
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1476 |
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1195 |
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24 |
% |
24 |
% |
2884 |
|
2480 |
|
16 |
% |
12 |
% |
|
|
|
Low Voltage Products |
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1219 |
|
1017 |
|
20 |
% |
22 |
% |
2325 |
|
2037 |
|
14 |
% |
12 |
% |
|
|
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Process Automation |
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1825 |
|
1452 |
|
26 |
% |
25 |
% |
3940 |
|
4005 |
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-2 |
% |
-6 |
% |
|
|
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Corporate (consolidation) |
|
-689 |
|
-812 |
|
15 |
% |
15 |
% |
-1410 |
|
-1759 |
|
20 |
% |
23 |
% |
|
Revenues |
|
Group |
|
7573 |
|
7915 |
|
-4 |
% |
-5 |
% |
14507 |
|
15124 |
|
-4 |
% |
-7 |
% |
|
|
|
Power Products |
|
2528 |
|
2839 |
|
-11 |
% |
-12 |
% |
4847 |
|
5307 |
|
-9 |
% |
-12 |
% |
|
|
|
Power Systems |
|
1635 |
|
1612 |
|
1 |
% |
0 |
% |
3019 |
|
3029 |
|
0 |
% |
-4 |
% |
|
|
|
Discrete Automation & Motion |
|
1287 |
|
1354 |
|
-5 |
% |
-5 |
% |
2500 |
|
2655 |
|
-6 |
% |
-9 |
% |
|
|
|
Low Voltage Products |
|
1102 |
|
977 |
|
13 |
% |
15 |
% |
2113 |
|
1910 |
|
11 |
% |
8 |
% |
|
|
|
Process Automation |
|
1737 |
|
1981 |
|
-12 |
% |
-12 |
% |
3472 |
|
3859 |
|
-10 |
% |
-14 |
% |
|
|
|
Corporate (consolidation) |
|
-716 |
|
-848 |
|
16 |
% |
15 |
% |
-1444 |
|
-1636 |
|
12 |
% |
15 |
% |
|
EBIT |
|
Group |
|
975 |
|
1047 |
|
-7 |
% |
|
|
1684 |
|
1909 |
|
-12 |
% |
|
|
|
|
|
Power Products |
|
417 |
|
555 |
|
-25 |
% |
|
|
765 |
|
997 |
|
-23 |
% |
|
|
|
|
|
Power Systems |
|
18 |
|
122 |
|
-85 |
% |
|
|
4 |
|
205 |
|
-98 |
% |
|
|
|
|
|
Discrete Automation & Motion |
|
205 |
|
190 |
|
8 |
% |
|
|
373 |
|
355 |
|
5 |
% |
|
|
|
|
|
Low Voltage Products |
|
213 |
|
95 |
|
124 |
% |
|
|
363 |
|
222 |
|
64 |
% |
|
|
|
|
|
Process Automation |
|
189 |
|
166 |
|
14 |
% |
|
|
348 |
|
312 |
|
12 |
% |
|
|
|
|
|
Corporate |
|
-67 |
|
-81 |
|
17 |
% |
|
|
-169 |
|
-182 |
|
7 |
% |
|
|
|
EBIT margin |
|
Group |
|
12.9 |
% |
13.2 |
% |
|
|
|
|
11.6 |
% |
12.6 |
% |
|
|
|
|
|
|
|
Power Products |
|
16.5 |
% |
19.5 |
% |
|
|
|
|
15.8 |
% |
18.8 |
% |
|
|
|
|
|
|
|
Power Systems |
|
1.1 |
% |
7.6 |
% |
|
|
|
|
0.1 |
% |
6.8 |
% |
|
|
|
|
|
|
|
Discrete Automation & Motion |
|
15.9 |
% |
14.0 |
% |
|
|
|
|
14.9 |
% |
13.4 |
% |
|
|
|
|
|
|
|
Low Voltage Products |
|
19.3 |
% |
9.7 |
% |
|
|
|
|
17.2 |
% |
11.6 |
% |
|
|
|
|
|
|
|
Process Automation |
|
10.9 |
% |
8.4 |
% |
|
|
|
|
10.0 |
% |
8.1 |
% |
|
|
|
|
Q2 2010 orders received and revenues by region
|
|
|
Orders received |
|
Change |
|
Revenues |
|
Change |
|
||||||||
|
$ millions |
|
Q2 10 |
|
Q2 09 |
|
US$ |
|
Local |
|
Q2 10 |
|
Q2 09 |
|
US$ |
|
Local |
|
|
Europe |
|
2,866 |
|
2,825 |
|
1 |
% |
6 |
% |
2,872 |
|
3,236 |
|
-11 |
% |
-8 |
% |
|
Americas |
|
1,462 |
|
1,503 |
|
-3 |
% |
-7 |
% |
1,481 |
|
1,485 |
|
0 |
% |
-4 |
% |
|
Asia |
|
2,165 |
|
2,033 |
|
6 |
% |
3 |
% |
2,175 |
|
2,231 |
|
-3 |
% |
-6 |
% |
|
Middle East and Africa |
|
1,172 |
|
948 |
|
24 |
% |
27 |
% |
1,045 |
|
963 |
|
9 |
% |
10 |
% |
|
Group total |
|
7,665 |
|
7,309 |
|
5 |
% |
5 |
% |
7,573 |
|
7,915 |
|
-4 |
% |
-5 |
% |
Half-year 2010 orders received and revenues by region
|
|
|
Orders received |
|
Change |
|
Revenues |
|
Change |
|
||||||||
|
$ millions |
|
H1 10 |
|
H1 09 |
|
US$ |
|
Local |
|
H1 10 |
|
H1 09 |
|
US$ |
|
Local |
|
|
Europe |
|
6,299 |
|
6,488 |
|
-3 |
% |
-6 |
% |
5,647 |
|
6,252 |
|
-10 |
% |
-11 |
% |
|
Americas |
|
2,959 |
|
2,858 |
|
4 |
% |
-3 |
% |
2,795 |
|
2,979 |
|
-6 |
% |
-11 |
% |
|
Asia |
|
4,266 |
|
4,253 |
|
0 |
% |
-5 |
% |
4,085 |
|
4,114 |
|
-1 |
% |
-6 |
% |
|
Middle East and Africa |
|
2,208 |
|
2,860 |
|
-23 |
% |
-25 |
% |
1,980 |
|
1,779 |
|
11 |
% |
9 |
% |
|
Group total |
|
15,732 |
|
16,459 |
|
-4 |
% |
-8 |
% |
14,507 |
|
15,124 |
|
-4 |
% |
-7 |
% |
Appendix I
Reconciliation of non-GAAP financial measures
($ millions, unaudited)
|
EBIT margin (for the 3 months ended June 30, 2010) |
|
|
|
|
= EBIT as % of revenues |
|
|
|
|
Earnings before interest and taxes (EBIT) |
|
975 |
|
|
Revenues |
|
7,573 |
|
|
EBIT margin |
|
12.9 |
% |
|
|
|
|
|
|
Adjustments to EBIT margin |
|
|
|
|
EBIT |
|
975 |
|
|
adjusted for the effects of |
|
|
|
|
Unrealized gains and losses on derivatives (FX, commodities, embedded derivatives) |
|
91 |
|
|
Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized |
|
12 |
|
|
Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) |
|
(46 |
) |
|
Restructuring and restructuring-related expenses |
|
70 |
|
|
EBIT after adjustments |
|
1,102 |
|
|
Revenues |
|
7,573 |
|
|
As % of revenues |
|
14.6 |
% |
|
|
|
|
|
|
Net cash (at June 30, 2010) |
|
|
|
|
= Cash and equivalents plus marketable securities and short-term investments, less total debt |
|
|
|
|
Short-term debt and current maturities of long-term debt |
|
(237 |
) |
|
Long-term debt |
|
(1,887 |
) |
|
Total debt |
|
(2,124 |
) |
|
Cash and equivalents |
|
6,536 |
|
|
Marketable securities and short-term investments |
|
1,478 |
|
|
Cash and marketable securities |
|
8,014 |
|
|
Net cash |
|
5,890 |
|
Appendix II
Key data by division based on realignment of automation divisions effective Jan.1, 2010
|
|
|
|
|
2007 FY |
|
2008 FY |
|
Q1-09 |
|
Q2-09 |
|
Q3-09 |
|
Q4-09 |
|
2009 FY |
|
|
Orders |
|
Group |
|
34,348 |
|
38,282 |
|
9,150 |
|
7,309 |
|
7,060 |
|
7,450 |
|
30,969 |
|
|
|
|
PP |
|
11,320 |
|
13,627 |
|
2,960 |
|
2,760 |
|
2,553 |
|
2,667 |
|
10,940 |
|
|
|
|
PS |
|
7,744 |
|
7,408 |
|
2,279 |
|
1,697 |
|
1,991 |
|
1,863 |
|
7,830 |
|
|
|
|
DM |
|
6,064 |
|
7,129 |
|
1,285 |
|
1,195 |
|
1,080 |
|
1,142 |
|
4,702 |
|
|
|
|
LP |
|
4,199 |
|
4,865 |
|
1,020 |
|
1,017 |
|
1,015 |
|
1,027 |
|
4,079 |
|
|
|
|
PA |
|
8,476 |
|
9,244 |
|
2,553 |
|
1,452 |
|
1,257 |
|
1,422 |
|
6,684 |
|
|
|
|
Corporate/other |
|
-3,455 |
|
-3,991 |
|
-947 |
|
-812 |
|
-836 |
|
-671 |
|
-3,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
Group |
|
29,183 |
|
34,912 |
|
7,209 |
|
7,915 |
|
7,910 |
|
8,761 |
|
31,795 |
|
|
|
|
PP |
|
9,777 |
|
11,890 |
|
2,468 |
|
2,839 |
|
2,823 |
|
3,109 |
|
11,239 |
|
|
|
|
PS |
|
5,832 |
|
6,912 |
|
1,417 |
|
1,612 |
|
1,612 |
|
1,908 |
|
6,549 |
|
|
|
|
DM |
|
5,414 |
|
6,588 |
|
1,301 |
|
1,354 |
|
1,280 |
|
1,470 |
|
5,405 |
|
|
|
|
LP |
|
4,125 |
|
4,747 |
|
933 |
|
977 |
|
1,052 |
|
1,109 |
|
4,071 |
|
|
|
|
PA |
|
6,936 |
|
8,397 |
|
1,878 |
|
1,981 |
|
1,926 |
|
2,054 |
|
7,839 |
|
|
|
|
Corporate/other |
|
-2,901 |
|
-3,622 |
|
-788 |
|
-848 |
|
-783 |
|
-889 |
|
-3,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
Group |
|
4,023 |
|
4,552 |
|
862 |
|
1,047 |
|
1,419 |
|
798 |
|
4,126 |
|
|
|
|
PP |
|
1,596 |
|
2,100 |
|
442 |
|
555 |
|
477 |
|
495 |
|
1,969 |
|
|
|
|
PS |
|
489 |
|
592 |
|
83 |
|
122 |
|
117 |
|
66 |
|
388 |
|
|
|
|
DM |
|
836 |
|
1,066 |
|
165 |
|
190 |
|
159 |
|
43 |
|
557 |
|
|
|
|
LP |
|
696 |
|
819 |
|
127 |
|
95 |
|
148 |
|
149 |
|
519 |
|
|
|
|
PA |
|
707 |
|
958 |
|
146 |
|
166 |
|
161 |
|
170 |
|
643 |
|
|
|
|
Corporate/other |
|
-301 |
|
-983 |
|
-101 |
|
-81 |
|
357 |
|
-125 |
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT % |
|
Group |
|
13.8 |
% |
13.0 |
% |
12.0 |
% |
13.2 |
% |
17.9 |
% |
9.1 |
% |
13.0 |
% |
|
|
|
PP |
|
16.3 |
% |
17.7 |
% |
17.9 |
% |
19.5 |
% |
16.9 |
% |
15.9 |
% |
17.5 |
% |
|
|
|
PS |
|
8.4 |
% |
8.6 |
% |
5.9 |
% |
7.6 |
% |
7.3 |
% |
3.5 |
% |
5.9 |
% |
|
|
|
DM |
|
15.4 |
% |
16.2 |
% |
12.7 |
% |
14.0 |
% |
12.4 |
% |
2.9 |
% |
10.3 |
% |
|
|
|
LP |
|
16.9 |
% |
17.3 |
% |
13.6 |
% |
9.7 |
% |
14.1 |
% |
13.4 |
% |
12.7 |
% |
|
|
|
PA |
|
10.2 |
% |
11.4 |
% |
7.8 |
% |
8.4 |
% |
8.4 |
% |
8.3 |
% |
8.2 |
% |
ABB Ltd Interim Consolidated Income Statements (unaudited)
|
|
|
Six months ended |
|
Three months ended |
|
||||
|
($ in millions, except per share data in $) |
|
Jun. 30, 2010 |
|
Jun. 30, 2009 |
|
Jun. 30, 2010 |
|
Jun. 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of products |
|
12,062 |
|
12,809 |
|
6,309 |
|
6,693 |
|
|
Sales of services |
|
2,445 |
|
2,315 |
|
1,264 |
|
1,222 |
|
|
Total revenues |
|
14,507 |
|
15,124 |
|
7,573 |
|
7,915 |
|
|
Cost of products |
|
(8,486 |
) |
(9,013 |
) |
(4,428 |
) |
(4,670 |
) |
|
Cost of services |
|
(1,625 |
) |
(1,563 |
) |
(835 |
) |
(816 |
) |
|
Total cost of sales |
|
(10,111 |
) |
(10,576 |
) |
(5,263 |
) |
(5,486 |
) |
|
Gross profit |
|
4,396 |
|
4,548 |
|
2,310 |
|
2,429 |
|
|
Selling, general and administrative expenses |
|
(2,714 |
) |
(2,639 |
) |
(1,337 |
) |
(1,362 |
) |
|
Other income (expense), net |
|
2 |
|
|
|
2 |
|
(20 |
) |
|
Earnings before interest and taxes |
|
1,684 |
|
1,909 |
|
975 |
|
1,047 |
|
|
Interest and dividend income |
|
50 |
|
68 |
|
26 |
|
30 |
|
|
Interest and other finance expense |
|
(87 |
) |
(33 |
) |
(45 |
) |
(55 |
) |
|
Income from continuing operations before taxes |
|
1,647 |
|
1,944 |
|
956 |
|
1,022 |
|
|
Provision for taxes |
|
(486 |
) |
(534 |
) |
(285 |
) |
(294 |
) |
|
Income from continuing operations, net of tax |
|
1,161 |
|
1,410 |
|
671 |
|
728 |
|
|
Income (loss) from discontinued operations, net of tax |
|
(1 |
) |
22 |
|
(2 |
) |
11 |
|
|
Net income |
|
1,160 |
|
1,432 |
|
669 |
|
739 |
|
|
Net income attributable to noncontrolling interests |
|
(73 |
) |
(105 |
) |
(46 |
) |
(64 |
) |
|
Net income attributable to ABB |
|
1,087 |
|
1,327 |
|
623 |
|
675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
1,088 |
|
1,305 |
|
625 |
|
664 |
|
|
Income (loss) from discontinued operations, net of tax |
|
(1 |
) |
22 |
|
(2 |
) |
11 |
|
|
Net income |
|
1,087 |
|
1,327 |
|
623 |
|
675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
0.48 |
|
0.57 |
|
0.27 |
|
0.29 |
|
|
Income (loss) from discontinued operations, net of tax |
|
(0.01 |
) |
0.01 |
|
|
|
0.01 |
|
|
Net income |
|
0.47 |
|
0.58 |
|
0.27 |
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
0.47 |
|
0.57 |
|
0.27 |
|
0.29 |
|
|
Income (loss) from discontinued operations, net of tax |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Net income |
|
0.47 |
|
0.58 |
|
0.27 |
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares (in millions) used to compute: |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders |
|
2,289 |
|
2,283 |
|
2,288 |
|
2,283 |
|
|
Diluted earnings per share attributable to ABB shareholders |
|
2,294 |
|
2,285 |
|
2,293 |
|
2,286 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Balance Sheets (unaudited)
|
($ in millions, except share data) |
|
Jun. 30, 2010 |
|
Dec. 31, 2009 |
|
|
|
|
|
|
|
|
|
Cash and equivalents |
|
6,536 |
|
7,119 |
|
|
Marketable securities and short-term investments |
|
1,478 |
|
2,433 |
|
|
Receivables, net |
|
9,265 |
|
9,451 |
|
|
Inventories, net |
|
4,551 |
|
4,550 |
|
|
Prepaid expenses |
|
209 |
|
236 |
|
|
Deferred taxes |
|
829 |
|
900 |
|
|
Other current assets |
|
648 |
|
540 |
|
|
Total current assets |
|
23,516 |
|
25,229 |
|
|
|
|
|
|
|
|
|
Financing receivables, net |
|
421 |
|
452 |
|
|
Property, plant and equipment, net |
|
3,766 |
|
4,072 |
|
|
Goodwill |
|
3,940 |
|
3,026 |
|
|
Other intangible assets, net |
|
699 |
|
443 |
|
|
Prepaid pension and other employee benefits |
|
105 |
|
112 |
|
|
Investments in equity method companies |
|
31 |
|
49 |
|
|
Deferred taxes |
|
1,028 |
|
1,052 |
|
|
Other non-current assets |
|
272 |
|
293 |
|
|
Total assets |
|
33,778 |
|
34,728 |
|
|
|
|
|
|
|
|
|
Accounts payable, trade |
|
3,891 |
|
3,853 |
|
|
Billings in excess of sales |
|
1,565 |
|
1,623 |
|
|
Accounts payable, other |
|
1,252 |
|
1,326 |
|
|
Short-term debt and current maturities of long-term debt |
|
237 |
|
161 |
|
|
Advances from customers |
|
1,604 |
|
1,806 |
|
|
Deferred taxes |
|
306 |
|
327 |
|
|
Provisions for warranties |
|
1,157 |
|
1,280 |
|
|
Provisions and other current liabilities |
|
2,428 |
|
2,603 |
|
|
Accrued expenses |
|
1,395 |
|
1,600 |
|
|
Total current liabilities |
|
13,835 |
|
14,579 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
1,887 |
|
2,172 |
|
|
Pension and other employee benefits |
|
1,088 |
|
1,179 |
|
|
Deferred taxes |
|
447 |
|
328 |
|
|
Other non-current liabilities |
|
1,893 |
|
1,997 |
|
|
Total liabilities |
|
19,150 |
|
20,255 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
|
Capital stock and additional paid-in capital (2,329,324,797 issued shares at June 30, 2010 and December 31, 2009) |
|
3,967 |
|
3,943 |
|
|
Retained earnings |
|
13,915 |
|
12,828 |
|
|
Accumulated other comprehensive loss |
|
(2,846 |
) |
(2,084 |
) |
|
Treasury stock, at cost (45,239,509 shares at June 30, 2010 and 39,901,593 shares at December 31, 2009) |
|
(986 |
) |
(897 |
) |
|
Total ABB stockholders equity |
|
14,050 |
|
13,790 |
|
|
Noncontrolling interests |
|
578 |
|
683 |
|
|
Total stockholders equity |
|
14,628 |
|
14,473 |
|
|
Total liabilities and stockholders equity |
|
33,778 |
|
34,728 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited)
|
|
|
Six months ended |
|
Three months ended |
|
||||
|
($ in millions) |
|
Jun. 30, 2010 |
|
Jun. 30, 2009 |
|
Jun. 30, 2010 |
|
Jun. 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
Net income |
|
1,160 |
|
1,432 |
|
669 |
|
739 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
336 |
|
298 |
|
167 |
|
150 |
|
|
Pension and postretirement benefits |
|
30 |
|
9 |
|
8 |
|
21 |
|
|
Deferred taxes |
|
70 |
|
(1 |
) |
46 |
|
(7 |
) |
|
Net gain from sale of property, plant and equipment |
|
(14 |
) |
(9 |
) |
(8 |
) |
(4 |
) |
|
Income from equity accounted companies |
|
(2 |
) |
|
|
(3 |
) |
(1 |
) |
|
Other |
|
26 |
|
(29 |
) |
17 |
|
49 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
Trade receivables, net |
|
(300 |
) |
35 |
|
(383 |
) |
105 |
|
|
Inventories, net |
|
(407 |
) |
(15 |
) |
(127 |
) |
217 |
|
|
Trade payables |
|
320 |
|
(505 |
) |
295 |
|
(130 |
) |
|
Billings in excess of sales |
|
44 |
|
70 |
|
2 |
|
15 |
|
|
Provisions, net |
|
(127 |
) |
63 |
|
(34 |
) |
84 |
|
|
Advances from customers |
|
(96 |
) |
(33 |
) |
(133 |
) |
(9 |
) |
|
Other assets and liabilities, net |
|
36 |
|
(352 |
) |
133 |
|
(162 |
) |
|
Net cash provided by operating activities |
|
1,076 |
|
963 |
|
649 |
|
1,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
Changes in financing receivables |
|
(20 |
) |
(2 |
) |
(13 |
) |
(4 |
) |
|
Purchases of marketable securities (available-for-sale) |
|
(1,678 |
) |
(62 |
) |
(1,434 |
) |
(42 |
) |
|
Purchases of marketable securities (held-to-maturity) |
|
(65 |
) |
(561 |
) |
(50 |
) |
(339 |
) |
|
Purchases of short-term investments |
|
(1,576 |
) |
(351 |
) |
(138 |
) |
(351 |
) |
|
Purchases of property, plant and equipment and intangible assets |
|
(280 |
) |
(409 |
) |
(132 |
) |
(224 |
) |
|
Acquisition of businesses (net of cash acquired) |
|
(1,154 |
) |
(55 |
) |
(1,101 |
) |
(7 |
) |
|
Proceeds from sales of marketable securities (available-for-sale) |
|
550 |
|
42 |
|
479 |
|
21 |
|
|
Proceeds from maturity of marketable securities (available-for-sale) |
|
220 |
|
855 |
|
83 |
|
|
|
|
Proceeds from maturity of marketable securities (held-to-maturity) |
|
240 |
|
|
|
54 |
|
|
|
|
Proceeds from short-term investments |
|
2,945 |
|
92 |
|
1,302 |
|
|
|
|
Proceeds from sales of property, plant and equipment |
|
24 |
|
18 |
|
10 |
|
10 |
|
|
Proceeds from sales of businesses and equity accounted companies (net of cash disposed) |
|
65 |
|
7 |
|
66 |
|
7 |
|
|
Net cash used in investing activities |
|
(729 |
) |
(426 |
) |
(874 |
) |
(929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
Net changes in debt with maturities of 90 days or less |
|
36 |
|
6 |
|
14 |
|
(15 |
) |
|
Increase in debt |
|
167 |
|
317 |
|
86 |
|
106 |
|
|
Repayment of debt |
|
(267 |
) |
(349 |
) |
(203 |
) |
(128 |
) |
|
Purchase of treasury shares |
|
(104 |
) |
|
|
(104 |
) |
|
|
|
Dividends paid to noncontrolling shareholders |
|
(117 |
) |
(106 |
) |
(101 |
) |
(92 |
) |
|
Other |
|
9 |
|
(34 |
) |
15 |
|
(21 |
) |
|
Net cash used in financing activities |
|
(276 |
) |
(166 |
) |
(293 |
) |
(150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Effects of exchange rate changes on cash and equivalents |
|
(654 |
) |
52 |
|
(354 |
) |
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and equivalents - continuing operations |
|
(583 |
) |
423 |
|
(872 |
) |
272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents beginning of period |
|
7,119 |
|
6,399 |
|
7,408 |
|
6,550 |
|
|
Cash and equivalents end of period |
|
6,536 |
|
6,822 |
|
6,536 |
|
6,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary disclosure of cash flow information: |
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
46 |
|
85 |
|
24 |
|
40 |
|
|
Taxes paid |
|
499 |
|
554 |
|
271 |
|
299 |
|
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 |
|
Retained |
|
Foreign |
|
Unrealized |
|
Pension and |
|
Unrealized |
|
Total |
|
Treasury |
|
Total ABB |
|
Noncontrolling |
|
Total |
|
|
Balance at January 1, 2009 |
|
4,841 |
|
9,927 |
|
(1,654 |
) |
83 |
|
(978 |
) |
(161 |
) |
(2,710 |
) |
(900 |
) |
11,158 |
|
612 |
|
11,770 |
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
1,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,327 |
|
105 |
|
1,432 |
|
|
Foreign currency translation adjustments |
|
|
|
|
|
221 |
|
|
|
|
|
|
|
221 |
|
|
|
221 |
|
(8 |
) |
213 |
|
|
Effect of change in fair value of available-for-sale securities, net of tax |
|
|
|
|
|
|
|
(75 |
) |
|
|
|
|
(75 |
) |
|
|
(75 |
) |
|
|
(75 |
) |
|
Unrecognized income (loss) related to pensions and other postretirement plans, net of tax |
|
|
|
|
|
|
|
|
|
(25 |
) |
|
|
(25 |
) |
|
|
(25 |
) |
1 |
|
(24 |
) |
|
Change in derivatives qualifying as cash flow hedges, net of tax |
|
|
|
|
|
|
|
|
|
|
|
76 |
|
76 |
|
|
|
76 |
|
|
|
76 |
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,524 |
|
98 |
|
1,622 |
|
|
Changes in noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21 |
) |
(21 |
) |
|
Dividends paid to noncontrolling shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(147 |
) |
(147 |
) |
|
Treasury stock transactions |
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
Share-based payment arrangements |
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
35 |
|
|
Call options |
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22 |
|
|
|
22 |
|
|
Balance at June 30, 2009 |
|
4,895 |
|
11,254 |
|
(1,433 |
) |
8 |
|
(1,003 |
) |
(85 |
) |
(2,513 |
) |
(897 |
) |
12,739 |
|
542 |
|
13,281 |
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
|
||||||||
|
($ in millions) |
|
Capital |
|
Retained |
|
Foreign |
|
Unrealized |
|
Pension and |
|
Unrealized |
|
Total |
|
Treasury |
|
Total ABB |
|
Noncontrolling |
|
Total |
|
|
Balance at January 1, 2010 |
|
3,943 |
|
12,828 |
|
(1,056 |
) |
20 |
|
(1,068 |
) |
20 |
|
(2,084 |
) |
(897 |
) |
13,790 |
|
683 |
|
14,473 |
|
|
Comprehensive income: |
|
|
|
|
|
||||||||||||||||||