SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 6-K/A
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of: April 2002
ABB Ltd
(Exact name of registrant as specified in charter)
N/A
(Translation of registrant's name into English)
Switzerland
(Jurisdiction of organization)
P.O. Box 8131, Affolternstrasse 44, CH-8050, Zurich, Switzerland
(Address of principal executive offices)
Registrant's telephone number, international:
+ 011-41-1-317-7111
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes 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/A amends Form 6-K filed on April 24, 2002. In that Form 6-K,
certain attachments to the press release of ABB Ltd., dated April 24, 2002 were
inadvertently omitted. This filing amends the original filing by including all
such attachments.
-2-
Press Release
For your business and technology editors
ABB's operational and financial restructuring on track
Four divisions report order increases over Q4 2001
- Net income US$ 114 million in Q1
- EBIT margin in line with outlook of 4-5 percent
- Operational cash flow seasonally negative, but stronger than in Q1 2001
- Total orders down 5 percent in local currencies from Q4, but four divisions
report increases
- ABB to combine most industry customer activities into one division
- Financial strategy progressing on plan
Zurich, Switzerland, April 24, 2002 - ABB said today its net income for the
first quarter of 2002 was US$ 114 million, compared with US$ 138 million in the
same period last year. Its first quarter EBIT margin (4.5 percent) was in line
with its 2002 target. Operational cash flow, at US$ -138 million, was stronger
than in the first quarter of 2001 (US$ -217 million).
Four divisions increased orders in local currencies in the first quarter,
compared to the fourth quarter of 2001. Automation Technology Products grew by
11 percent, Power Technology Products by 21 percent, Process Industries by 12
percent and Manufacturing and Consumer Industries by 3 percent in local
currencies. Total group orders decreased 5 percent compared with the previous
quarter. The order backlog has grown to more than US$ 13.7 billion, an increase
of 4 percent in local currencies since the end of 2001.
Compared to a strong first quarter last year, total orders were down 15 percent
in local currencies. Orders from strategic customers declined less, by only 5
percent.
"We see some favorable early signs in order development, notably in the Power
and Automation Technology Products divisions," said Jorgen Centerman, ABB
president and CEO. "It is too soon to say if we have a broader upturn ahead, but
we are confident ABB will reach its revenue and margin targets for the year.
Operationally and financially, we're on track."
ABB cut another 2,200 jobs in the first quarter, partly through natural
attrition. Restructuring provisions were US$ 55 million.
In line with its strategy to focus on power and automation technologies for
utility and industry customers, ABB announced it intends to divest the Building
Systems business area, currently part of the Manufacturing and Consumer
Industries division. The other three business areas in the Manufacturing and
Consumer Industries division will be combined with the Process Industries
division in a newly-created Industries division.
ABB reported good progress in implementing its financing strategy. The company
will complete the amendment of its US$ 3 billion credit facility tomorrow and
confirmed that nearly all of its original 24 relationship banks have committed
to participate. ABB also confirmed it is on track to reduce net debt by at least
US$ 1.5 billion in 2002, partly through the divestment of Structured Finance
businesses and other asset sales.
In regard to asbestos claims pending against Combustion Engineering, a US
subsidiary, ABB said that about 13,300 claims were settled in the first quarter,
more than 50 percent without payment. As a result of intensified efforts to
identify and settle valid claims and dispute claims that appear baseless, the
number of pending claims remained at
around 94,000 after the first quarter. Settlement costs prior to insurance
reimbursement were US$ 51 million, up from US$ 37 million in the first quarter
last year.
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
US$ in millions, except per share data Jan - March 2002 Jan-March 2001 Change Change in local
currencies
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Orders 5,523 6,786 - 19% - 15%
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Revenues 5,149 5,380 - 4% - 1%
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Earnings before interest and taxes (EBIT) 235 334 - 30% - 25%
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Income from continuing operations 108 201 - 46%
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Income (loss) from extraordinary items and 6 (63)
accounting changes
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Net income 114 138 - 17%
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Earnings per share (US$)
Income from continuing operations, basic
and diluted: 0.10 0.17
Net income, basic and diluted: 0.10 0.12
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
EBITDA 387 524 - 26% - 22%
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Net cash used in operating activities (138) (217)
--------------------------------------------- ------------------ ---------------- ----------- ----------------------
Organizational and management changes
Dinesh Paliwal, head of the former Process Industries division, will head the
newly created Industries division.
Jan Secher, previously head of the Manufacturing and Consumer Industries
division, will take over from Eric Drewery as head of Group Processes, the
division driving the implementation of common processes and shared services
throughout ABB. Secher will also retain responsibility for the business area
Building Systems, and oversee its divestment.
Drewery is retiring for health reasons after a long, distinguished career with
ABB. Formerly head of ABB's organization in the U.K., he led the Group
Transformation unit last year and assumed responsibility for Group Processes
early this year.
The ABB Board of Directors appointed Bernhard Jucker, 47, new head of the
Automation Technology Products division. Jucker, a Swiss citizen, has headed the
Drives and Power Electronics business area in the Automation Technology Products
division since November 2000. Jucker succeeds Jouko Karvinen, who has accepted
an offer from Philips to head its medical systems business.
Key financial developments
First quarter orders decreased 15 percent expressed in local currencies compared
with the same period in 2001, or 19 percent in nominal terms, to US$ 5,523
million. Year-on-year, all divisions except Power Technology Products reported
lower orders compared to the first quarter of 2001.
Base orders (orders below US$ 15 million) represented 88 percent of total first
quarter orders. Base orders declined about 14 percent in local currencies
compared with the first quarter of 2001, or around 17 percent in nominal terms.
Large orders fell by 28 percent in both local and nominal currency terms.
First quarter revenues were flat in local currencies, and decreased 4 percent in
nominal terms to US$ 5,149 million. Oil, Gas and Petrochemicals and Power
Technology Products reported double digit growth on the back of a strong order
backlog and continued demand for power transmission equipment, respectively.
The order backlog has increased by 2 percent to US$ 13,754 million, or 4 percent
in local currencies, since year-end 2001.
EBIT for the first quarter of 2002 was US$ 235 million, some 30 percent lower
than the same period last year. EBIT included other income of US$ 18 million,
comprising restructuring charges of US$ 55 million (Q1 2001: US$ 6 million),
capital gains of US$ 58 million (Q1 2001: US$ 3 million), US$ 7 million for
write-down of assets (Q1 2001: US$ 1 million), and income from equity accounted
companies, licenses and other of US$ 22 million (Q1 2001: US$ 52 million).
After net interest expense and taxes, income from continuing operations was US$
108 million, 46 percent below first quarter 2001.
Net income decreased by 17 percent to US$ 114 million in the first quarter
compared with the same period last year.
Net cash from operating activities improved year-on-year, but was negative US$
138 million. In line with ABB's usual quarterly pattern, working capital
increased slightly from historically low levels at the end of 2001 and certain
non-cash one-time charges became cash-effective, including restructuring
charges.
Balance sheet and liquidity
Cash and marketable securities totaled US$ 6,583 million at March 31, 2002. Net
debt (defined as short-, medium- and long-term debt less cash and marketable
securities) increased to US$ 4,487 million from US$ 4,077 million at the end of
2001.
In December 2001, the company established a US$ 3 billion committed bank
facility. ABB drew down US$ 2,845 million under this facility in March, securing
more than enough cash to meet all its commercial paper obligations maturing
during the remainder of 2002. The drawdown did not increase ABB's net debt, but
replaced other short-term borrowings and added to cash equivalents.
ABB's liquidity was further strengthened on April 2 when its lead banks
committed to fully underwrite the amended US$ 3 billion credit facility.
As part of its goal to extend the maturity profile of its debt, ABB announced
that it will issue a combination of convertible and straight bonds in the second
quarter of 2002. ABB will start a bond investor road show on April 30 and plans
to price and launch its straight bond issue in mid-May.
Outlook
--------------------------------------
Assumes no major currency effects and excludes major acquisitions and
divestments
The outlook remains unchanged. For 2002, revenues are expected to be flat in
comparison to 2001. EBIT margin for the full year 2002 is expected to be in the
range of 4-5 percent. EBIT and net cash from operations are expected to be
stronger in the second half of 2002 than in the first half.
ABB's target is to grow revenues on average by 6 percent annually in the period
2001-2005. EBIT margin is expected to reach 9-10 percent by 2005.
Employees
As of March 31, 2002, ABB employed 151,829 people compared to 156,865 at
year-end 2001. Since June 30, 2001, the number of jobs (excluding acquisitions
and divestments) decreased by more than 9,300.
Asbestos update
New claims filed during the first quarter of 2002 in connection with asbestos
litigation against Combustion Engineering, a U.S. subsidiary, were about 14,300,
a decrease of 5 percent compared to the fourth quarter of 2001.
Of about 13,300 claims settled during the period, more than 50 percent were
settled without payment.
Settlement costs prior to insurance reimbursement were US$ 51 million, up from
US$ 37 million in the first quarter last year.
As a result of intensified efforts to identify and settle valid claims and
dispute claims that appear baseless, the number of pending claims remained at
around 94,000 after the first quarter.
Combustion Engineering considers that the full-year trends for 2002 for new
claim filings, claims settled and cash settlements cannot be reliably estimated
based on the first quarter developments and does not consider it necessary to
change provisions.
Technology
Industrial IT, a common systems integration architecture, harmonizes all ABB
offerings and allows the inclusion of third-party products in ABB's
installations for utility and industry customers.
The process of certifying ABB products to its Industrial IT standards was well
ahead of schedule by the end of the first quarter of 2002. Some 9,000 ABB
products and product lines have now been certified. Close to 8,000 were
certified in the first quarter and ABB is committed to ratify all relevant
products and product lines by year-end - a total of about 40,000.
ABB opened a research and development center in the Indian city of Bangalore to
concentrate on software development and Industrial IT. Some 50 software
engineers and programmers are working at the center.
Board of directors
The ABB Board of Directors, in its first meeting for 2002, constituted two board
committees designed to strengthen ABB's corporate governance. The Nomination and
Compensation Committee will be headed by board chairman Jurgen Dormann, with
Martin Ebner and Hans Ulrich Maerki as other members. Bernard Voss will head the
Finance and Audit committee, whose other members are Jacob Wallenberg and Roger
Agnelli.
Division reviews
Power and Automation Technology Products serve their customers through external
channel partners and ABB's end-user divisions. As part of ABB's customer-centric
strategy, some customers are progressively being served directly by channel
partners such as wholesalers, systems integrators and distributors. As a result,
orders, revenues and earnings associated with these customers are no longer
reflected in the end-user divisions. At the same time, internal eliminations
(currently presented in the line item Corporate/Other) decrease accordingly.
There is no impact on the Group's consolidated results.
The ABB Group's reporting currency is the U.S. dollar, which strengthened
against most of ABB's local currencies since last year. The strengthened dollar
continued to impact results unfavorably
during the first quarter. All figures reflect the first three months activity
and, except for EBIT margins, comments refer to local currency figures.
EBIT excluding capital gains is shown only if the aggregate of such gains for
the division is material (in any case, if capital gains represent more than 10
percent of divisional EBIT).
Utilities
------------------------------------ ---------------- ----------------- ---------------- -----------------
US$ in millions, except where Jan - March Jan- March 2001 Change Change
indicated 2002 in local
currencies
------------------------------------ ---------------- ----------------- ---------------- -----------------
Orders 1,455 1,700 - 14% - 11%
------------------------------------ ---------------- ----------------- ---------------- -----------------
Revenues 1,075 1,196 - 10% - 7%
------------------------------------ ---------------- ----------------- ---------------- -----------------
EBIT 32 40 - 20% - 17%
------------------------------------ ---------------- ----------------- ---------------- -----------------
EBIT margin 3.0% 3.3%
------------------------------------ ---------------- ----------------- ---------------- -----------------
In the Americas, demand from independent power producers for plant and control
systems slowed. In several key markets investment shifted from power sources to
transmission and distribution.
Highlights of the quarter included a US$ 50 million order to install a new
high-voltage direct current transmission system between the eastern and western
power grids of the U.S., scheduled to enter commercial operation in October
2003. The division simplified its business structure, reducing the number of
business areas to three. This sharpened its focus on growing consulting and
field service business, as well as reducing cost overheads.
First quarter orders declined 11 percent due to lower base orders, mainly
because Power Technology Products served progressively more customers via
channel partners. Base orders also declined as a result of the slowdown in the
power generator and substations business. The decline in base orders was partly
offset by higher large orders.
Revenues decreased 7 percent in line with the lower volume of base orders. The
decline was partly offset by increased sales in Utility Automation and Utility
Partner business areas.
EBIT fell 17 percent mainly on lower product sales, although underlying
operational performance actually improved on a like-for-like basis. EBIT margin
was 3 percent.
Process Industries
------------------------------------ ---------------- ---------------- ----------------- ----------------
US$ in millions, except where Jan - March Jan- March 2001 Change Change
indicated 2002 in local
currencies
------------------------------------ ---------------- ---------------- ----------------- ----------------
Orders 808 1,055 - 23% - 19%
------------------------------------ ---------------- ---------------- ----------------- ----------------
Revenues 633 775 - 18% - 15%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT 30 35 - 14% - 12%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT margin 4.7% 4.5%
------------------------------------ ---------------- ---------------- ----------------- ----------------
The slowdown in the world economy continued to have a negative impact on
customer demand in the process industries, as many customers reduced or delayed
capital expenditures. Nevertheless, the division established several new
alliances and frame agreements, and has put in place its new service
organization.
Highlights of the first quarter included new product launches, including
ProduceIT ME and Industrial IT for Basic Quality Control, aimed respectively at
the fast-growing pharmaceuticals and Chinese paper machine markets.
Orders decreased 19 percent compared with the first quarter of 2001. This was
largely due to selected customers being served more directly by channel partners
selling ABB's automation and power technology products. Compared with the third
and fourth quarters of 2001, first quarter orders showed double digit increases
- largely driven by strong growth in Paper, Printing, Metals and Minerals.
Reflecting the order downturn in the second half of 2001, first quarter revenues
declined by 15 percent. Excluding ABB product sales now handled via channel
partners, revenues increased in Marine and Turbocharging and Petroleum, Chemical
and Life Sciences.
First quarter EBIT decreased 12 percent, mainly due to the drop in year-on-year
volumes for Paper, Printing, Metals and Minerals. EBIT reported by all other
business areas was flat or improved. EBIT margin increased slightly to 4.7
percent as a result of cost-cutting to improve productivity, including a 2
percent reduction in jobs during the first quarter.
Manufacturing and Consumer Industries
------------------------------------ ---------------- ---------------- ----------------- ----------------
US$ in millions, except where Jan - March Jan- March 2001 Change Change
indicated 2002 in local
currencies
------------------------------------ ---------------- ---------------- ----------------- ----------------
Orders 959 1,337 - 28% - 25%
------------------------------------ ---------------- ---------------- ----------------- ----------------
Revenues 841 1,163 - 28% - 24%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT - 6 37 NA NA
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT margin NA 3.2%
------------------------------------ ---------------- ---------------- ----------------- ----------------
Despite continued low investment levels in most manufacturing and consumer
industries - electronics, computers, telecoms and automotive - there were
cautious signs of recovery in specific market segments. The building
construction market continued to weaken, particularly in Europe.
First quarter orders dropped 25 percent compared with the same period last year,
with the sharpest decline in Building Systems. Orders were up 3 percent versus
the fourth quarter, reflecting higher order intake in all business areas except
Logistics Systems
Year-on-year, first quarter revenues were down by 24 percent. The largest
reductions were in Automotive and Building Systems, reflecting both lower order
backlogs and reduced product sales. Lower product sales resulted from the
transfer of smaller customers to more direct supply by ABB's product divisions.
EBIT was a loss of US$ 6 million for the first quarter, mainly due to low
volumes and restructuring costs.
Oil, Gas and Petrochemicals
------------------------------------ ---------------- ---------------- ----------------- ----------------
US$ in millions, except where Jan - March Jan- March 2001 Change Change
indicated 2002 in local
currencies
------------------------------------ ---------------- ---------------- ----------------- ----------------
Orders 627 961 - 35% - 34%
------------------------------------ ---------------- ---------------- ----------------- ----------------
Revenues 972 769 + 26% + 29%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT 45 41 + 10% + 10%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT margin 4.6% 5.3%
------------------------------------ ---------------- ---------------- ----------------- ----------------
In Upstream markets, oil prices have recently recovered and are again within the
US$ 22 - 28 per barrel OPEC band, mainly as a result of fears over the Middle
East conflict. Higher prices have not resulted in significantly increased
investment, however, as the longer-term outlook remains uncertain. In
Downstream, low levels of activity have continued into the first quarter of
2002.
Highlights of the quarter included a US$ 165 million contract to expand an
ethylene plant in Poland, as well an important ethylbenzene technology
conversion project with Dow Chemical, a strategic alliance with China Petroleum
& Chemical Corporation, and a maintenance and modification frame agreement with
the Norwegian Statoil company for several of its installations.
Orders decreased 34 percent compared with first quarter 2001, which had a
particularly high order intake. Several large Upstream projects were awarded in
the first quarter, as well as important technology license projects in
Downstream.
First quarter revenues increased 29 percent overall, fed by Upstream's high
order backlog. Downstream revenues also increased, but more modestly given its
lower backlog.
EBIT increased 10 percent compared with first quarter 2001, although EBIT margin
decreased to 4.6 percent.
Power Technology Products
------------------------------------ ---------------- ---------------- ----------------- ----------------
US$ in millions, except where Jan - March Jan- March 2001 Change Change
indicated 2002 in local
currencies
------------------------------------ ---------------- ---------------- ----------------- ----------------
Orders 1,133 1,105 + 3% + 7%
------------------------------------ ---------------- ---------------- ----------------- ----------------
Revenues 992 855 + 16% + 21%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT 66 64 + 3% + 6%
------------------------------------ ---------------- ---------------- ----------------- ----------------
EBIT margin 6.7% 7.5%
------------------------------------ ---------------- ---------------- ----------------- ----------------
Good demand continued in Asian markets - particularly China - while Europe and
the Americas were mixed. The Middle East and Africa showed increased investment
activity.
First quarter orders increased 7 percent compared with the same period in 2001,
as base orders showed double-digit improvement. Order growth was fuelled by
Power Transformers, while Distribution Transformers showed modest growth and
High-Voltage Technology was negatively impacted by the timing of large orders.
Compared with the fourth quarter of 2001, orders grew by 21 percent on increased
demand and higher product sales across all business areas.
Revenues were up 21 percent for the first quarter of 2002, mainly driven by
double-digit growth in High-Voltage Technology and Power Transformers. Revenues
increased substantially despite an 8 percent reduction in the division's
workforce since June 2001, indicating good progress in its productivity program.
Despite significantly higher restructuring charges, EBIT increased 6 percent and
EBIT margin declined to 6.7 percent. Excluding restructuring, EBIT increased by
about 40 percent.
Automation Technology Products
--------------------------------------------------------------------------------------------------------
US$ in millions, except where Jan - March Jan- March Change Change
indicated 2002 2001 in local
currencies
---------------------------------------------------------------------------------------------------------
Orders 1,320 1,419 - 7% - 3%
---------------------------------------------------------------------------------------------------------
Revenues 1,221 1,276 - 4% +/- 0%
---------------------------------------------------------------------------------------------------------
EBIT 81 112 - 28% - 25%
---------------------------------------------------------------------------------------------------------
EBIT margin 6.6% 8.8%
---------------------------------------------------------------------------------------------------------
Demand for automation products was weak overall during the first quarter,
although some sectors - for example, robotics and drives - showed the first
signs of recovery from very depressed levels in the second half of 2001. In
particular, U.S. markets remained slow, while Asia - particularly China -
continue to grow.
First quarter orders were down 3 percent compared with the same period in 2001,
with all business areas reporting lower volumes. Compared with the fourth
quarter, order intake showed an 11 percent increase on strong growth in Drives
and Power Electronics and Motors and Machines, with a more modest increase in
Low-Voltage Products. Order intake in Control and Instrumentation as well as
Robotics was slightly down from the fourth quarter of 2001.
Revenues were flat quarter-on-quarter, but declined 7 percent from the fourth
quarter 2001.
EBIT dropped 25 percent compared with the first quarter of 2001 mainly on as a
result of the timing of restructuring charges. Accordingly, EBIT margin declined
to 6.6 percent. Compared with the fourth quarter, EBIT increased sharply due to
lower restructuring charges and the first benefits of an 8 percent job reduction
during the second half of 2001.
Financial Services
-----------------------------------------------------------------------------------------------------
US$ in millions, except Jan - March Jan- March Change Change
where indicated 2002 2001 in local
currencies
-----------------------------------------------------------------------------------------------------
Revenues 336 479 - 30% - 27%
-----------------------------------------------------------------------------------------------------
EBIT 82 84 - 2% + 3%
-----------------------------------------------------------------------------------------------------
General interest rates trended upward, with reduced volatility in foreign
exchange markets. Insurance premiums were higher than last year, as insurance
companies recouped September 11 losses.
Revenues dropped 27 percent compared with the first quarter of 2001, mainly due
to run-off of the Scandinavian Re portfolio and associated lower premium and
investment income. Treasury Centers also reported lower revenues as a result of
flat trading markets.
First quarter EBIT increased 3 percent, as a good technical result in Insurance
was somewhat offset by lower investment results. Structured Finance reported
strong earnings from Swedish Export Credit (SEK). Equity Ventures and Treasury
Centers reported moderately lower earnings compared with the same period last
year.
Corporate/Other
------------------------------------------------------------------------------------------------------
US$ in millions, except where indicated Jan - March 2002 Jan- March 2001
------------------------------------------------------------------------------------------------------
EBIT - 95 - 79
------------------------------------------------------------------------------------------------------
New Ventures -21 - 20
------------------------------------------------------------------------------------------------------
Corporate R & D -18 - 21
-------------------------------------------------------------------------------------------------------
Group Processes -30 - 12
------------------------------------------------------------------------------------------------------
Real estate 12 18
------------------------------------------------------------------------------------------------------
Elimination of AFS interest income -36 - 30
------------------------------------------------------------------------------------------------------
Other Corporate -62 - 15
------------------------------------------------------------------------------------------------------
Capital Gains 60 1
------------------------------------------------------------------------------------------------------
For the first quarter, total operating costs from Corporate/Other increased to
US$ 95 million. Corporate Research and Development costs decreased, mainly due
to the reduction of overlapping projects. As a result of consolidating processes
across group companies, expenses for Group Processes increased.
Other Corporate mainly includes costs for the corporate functions provided by
group holding companies. In the first quarter of 2002, it also includes a
non-recurring recovery of a prior period cost of US$ 38 million (net of expected
tax costs), offset by non-recurring costs of US$ 45 million, principally
relating to inventory and land.
Most of the capital gain recorded in the first quarter of 2002 relates to the
divestment of the Air Handling business.
Reporting dates
The remaining quarterly reporting dates in 2002 for ABB Ltd are scheduled for
July 24 and October 24.
The company will host a conference call for analysts and investors to discuss
its first quarter results today at 15:00 Central European Time. Teleconference
callers should dial +41 91 610 4111 in Europe and +1 412 858 4600 in the U.S.
and Canada. The facility is also available to the media on a "listen only"
basis.
The 2002 first quarter results release and presentation slides will be available
from the morning of Wednesday, April 24th on the ABB Investor Relations homepage
at www.abb.com/investorrelations.
The audio playback of the conference call will be available for 72 hours
following the conference call on +41 91 610 2500 (Europe) and +1 412 858 1440 in
the U.S. and Canada. The PIN number is 605#.
ABB (www.abb.com) is a global leader in power and automation technologies that
enable utility and industry customers to improve performance while lowering
environmental impact. ABB has 152,000 employees 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, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time in ABB's
filings with the U.S. Securities and Exchange Commission. 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:
--------------------------------------------------------------------------------
Media Relations: Investor Relations:
--------------------------------------------------------------------------------
ABB Corporate Communications, Zurich Switzerland: Tel. +41 43 317 38 04
--------------------------------------------------------------------------------
Thomas Schmidt Sweden: Tel. +46 21 325 719
--------------------------------------------------------------------------------
Tel: +41 43 317 6492 USA: Tel. + 1 203 750 7743
--------------------------------------------------------------------------------
Fax: +41 43 317 6494 investor.relations@ch.abb.com
--------------------------------------------------------------------------------
media.relations@ch.abb.com
--------------------------------------------------------------------------------
ABB Ltd
Summary Consolidated Income Statements
January - March
---------------------------------------
2002 2001
------- ------
(Unaudited)
(in millions, except per share data)
Revenues................................................................. $ 5,149 $ 5,380
Cost of sales............................................................ (3,913) (3,982)
-------------- --------------
Gross profit............................................................. 1,236 1,398
Selling, general and administrative expenses............................. (1,007) (1,054)
Amortization expense..................................................... (12) (58)
Other income, net........................................................ 18 48
-------------- --------------
Earnings before interest and taxes....................................... 235 334
Interest and dividend income............................................. 102 142
Interest and other finance expense....................................... (151) (180)
-------------- --------------
Income from continuing operations before taxes and minority interest..... 186 296
Provision for taxes...................................................... (57) (87)
Minority interest........................................................ (21) (8)
-------------- --------------
Income from continuing operations........................................ 108 201
Extraordinary gain on debt extinguishment, net of tax.................... 6 ---
Cumulative effect of change in accounting principles (SFAS 133),
net of tax............................................................... --- (63)
-------------- --------------
Net income............................................................... $ 114 $ 138
============== ==============
Weighted average shares outstanding...................................... 1,113 1,172
Dilutive potential shares................................................ --- 5
-------------- --------------
Diluted weighted average shares outstanding.............................. 1,113 1,177
============== ==============
Basic earnings per share:
Income from continuing operations.................................... $ 0.10 $ 0.17
Net income........................................................... $ 0.10 $ 0.12
Diluted earnings per share:
Income from continuing operations.................................... $ 0.10 $ 0.17
Net income........................................................... $ 0.10 $ 0.12
ABB Ltd
Summary Consolidated Balance Sheets
At March 31, At December 31,
2002 2001
-------------- ---------------
(Unaudited) (Audited)
(in millions)
Cash and equivalents..................................................... $ 3,992 $ 2,767
Marketable securities.................................................... 2,591 2,946
Receivables, net......................................................... 8,277 8,368
Inventories, net......................................................... 3,201 3,075
Prepaid expenses and other............................................... 1,973 2,358
--------------- --------------
Total current assets..................................................... 20,034 19,514
Financing receivables, non-current....................................... 4,399 4,263
Property, plant and equipment, net....................................... 3,045 3,003
Goodwill and other intangible assets, net................................ 3,284 3,299
Investments and other.................................................... 2,277 2,265
--------------- --------------
Total assets............................................................. $ 33,039 $ 32,344
=============== ==============
Accounts payable, trade.................................................. $ 3,916 $ 3,991
Accounts payable, other.................................................. 2,442 2,710
Short-term borrowings and current maturities of long-term borrowings..... 6,683 4,747
Accrued liabilities and other............................................ 7,091 7,587
--------------- --------------
Total current liabilities................................................ 20,132 19,035
Long-term borrowings..................................................... 4,387 5,043
Pension and other related benefits....................................... 1,687 1,688
Deferred taxes........................................................... 1,387 1,360
Other liabilities........................................................ 2,990 2,989
--------------- --------------
Total liabilities........................................................ 30,583 30,115
Minority interest........................................................ 217 215
Capital stock and additional paid-in capital (1,280,009,432
shares authorized, 1,200,009,432 shares issued)....................... 2,028 2,028
Retained earnings................................................... 3,549 3,435
Accumulated other comprehensive income................................. (1,588) (1,699)
Treasury stock, at cost (86,875,616 shares)............................ (1,750) (1,750)
--------------- --------------
Total stockholders' equity............................................... 2,239 2,014
--------------- --------------
Total liabilities and stockholders' equity............................... $ 33,039 $ 32,344
=============== ==============
ABB Ltd
Summary Consolidated Statements of Cash Flows
January - March
------------------------------
2002 2001
--------- --------
(Unaudited)
(in millions)
Operating activities
Income from continuing operations........................................ $ 108 $ 201
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Depreciation and amortization........................................ 152 190
Restructuring provisions............................................. 24 (8)
Pension and post-retirement benefits................................. 1 1
Deferred taxes....................................................... 6 26
Net gain from sale of property, plant and equipment................. (3) (2)
Other................................................................ (40) (61)
Changes in operating assets and liabilities
Marketable securities (trading)............................... 66 (36)
Trade receivables............................................. 347 83
Inventories................................................... (164) (342)
Trade payables................................................ (33) 100
Other assets and liabilities, net............................. (602) (369)
-------------- -------------
Net cash used in operating activities.................................... $ (138) $ (217)
-------------- -------------
Investing activities
Changes in financing receivables......................................... (153) (540)
Purchases of marketable securities (other than trading).................. (836) (890)
Purchases of property, plant and equipment............................... (152) (189)
Acquisitions of businesses (net of cash acquired)........................ (10) (19)
Proceeds from sales of marketable securities (other than trading)........ 1,103 1,022
Proceeds from sales of property, plant and equipment..................... 23 23
Proceeds from sales of businesses (net of cash disposed)................. 170 8
-------------- -------------
Net cash provided by (used in) investing activities...................... $ 145 $ (585)
-------------- -------------
Financing activities
Changes in borrowings ................................................... 1,336 2,476
Treasury and capital stock transactions.................................. --- (579)
Dividends paid........................................................... --- (502)
Other.................................................................... (69) (24)
-------------- -------------
Net cash provided by financing activities................................ $ 1,267 $ 1,371
-------------- -------------
Net cash used in discontinued operations................................. (43) (62)
Effects of exchange rate changes on cash and equivalents................. (6) (44)
-------------- -------------
Net change in cash and equivalents....................................... 1,225 463
Cash and equivalents (beginning of year)................................. 2,767 1,397
-------------- -------------
Cash and equivalents (end of period)..................................... $ 3,992 $ 1,860
============== =============
Interest paid............................................................ $ 137 $ 177
Taxes paid............................................................... $ 43 $ 122
ABB Ltd notes to summary consolidated financial statements (Unaudited)
(US$ in millions, except per share amounts)
Note 1 Developments in the three months ended:
o Annual general meeting
At the Company's annual general meeting held on March 12, 2002, the
Company's shareholders approved the resolution to not pay a dividend
in 2002. In addition, shareholders approved the resolution to not
effect a capital reduction of 24 million shares purchased during the
first half of 2001, as a result of changed market conditions.
o Restructuring program
In July 2001, the Company announced a restructuring program
anticipated to extend over 18 months. This restructuring program was
initiated in an effort to simplify product lines, reduce multiple
location activities and perform other downsizing in response to
consolidation of major customers in certain industries.
As of March 31, 2002, the Company recognized charges of $47 million
relating to workforce reductions and $6 million relating to lease
terminations and other exit costs associated with the restructuring
program. These costs are included in other income (expense), net.
Based on analysis, Management's estimate has been revised resulting in
a $10 million reduction in the amounts accrued for lease terminations
and other exit costs. This revision is recognized as a component of
other income (expense), net. Termination benefits of $24 million were
paid in the first quarter of 2002 to approximately 600 employees and
$8 million was paid to cover costs associated with lease terminations
and other exit costs. Workforce reductions include production,
managerial and administrative employees. At March 31, 2002, accrued
liabilities included $102 million for termination benefits and $28
million for lease terminations and other exit costs.
As a result of the Company's restructuring, certain assets have been
identified as impaired or will no longer be used in continuing
operations. The Company recorded $12 million to write down these
assets to net realizable value. These costs are included in other
income (expense), net.
o Borrowings
The Company's total borrowings outstanding at December 31, 2001,
amounted to $9,790 million, of which $3,297 million was in the form of
commercial paper with an average interest rate of 2.7%. In March 2002,
the Company drew down $2,845 million, at an interest rate of 4.7%,
from a $3 billion committed bank facility established in December
2001, using a portion of these proceeds to reduce its outstanding
commercial paper borrowings to $1,536 million at March 31, 2002.
o Commitments and contingencies
Asbestos related claims
A subsidiary of the Company has followed a practice of maintaining a
reserve to cover its estimated settlement costs for asbestos claims
and an asset representing estimated insurance reimbursement. The
reserve represents an estimate of the costs associated with asbestos
claims, including defense costs, based upon historical claims trends,
available industry information and incidence rates of new claims. At
December 31, 2001, the subsidiary had reserved approximately $940
million, for asbestos-related claims. The subsidiary also recorded
receivables of approximately $150 million at December 31, 2001, for
probable insurance recoveries. Allowances against the insurance
receivables are established at such time as it becomes likely that
insurance recoveries are not probable. New claims filed during the
first three months of 2002 were approximately 14,300, a decrease of 5%
compared to the fourth quarter of 2001. Of the approximately 13,400
claims settled during the period, more than 50% were settled without
payment. Settlement costs prior to insurance reimbursement were $51
million, up from $37 million in the first three months of 2001. As a
result of intensified efforts to identify and settle valid claims and
dispute claims that appear baseless, the number of pending claims
remained at approximately 94,000 at the end March 2002. Trends as
regards new claim filings, claims settled and cash settlements cannot
be estimated reliably based on the first quarter developments, and
consequently no additional charges have been recorded.
Note 2 Significant Accounting Policies
The summary consolidated financial information is prepared on the basis of
United States (U.S.) generally accepted accounting principles (USGAAP) and is
presented in U.S. dollars ($) unless otherwise stated. Data for orders and
number of employees are shown for purposes of presenting additional disclosure
and are not required disclosure under USGAAP.
Par value of capital stock is denominated in Swiss francs (CHF). The summary
financial information as of March 31, 2002 should be read in conjunction with
the December 31, 2001 financial statements contained in the Company's Annual
Report.
At the Company's annual general meeting held on March 20, 2001, the Company's
shareholders approved a four-for-one share split. The share split became
effective as of May 7, 2001. All per share amounts in the consolidated financial
statements have been presented as if the share split had occurred as of the
earliest period presented.
New accounting standards
The Company accounted for the adoption of Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and Hedging Activities,
as amended, as a change in accounting principle. Based on the Company's
derivative positions at January 1, 2001, the Company recognized the cumulative
effect of the accounting change as a loss of $63 million, net of tax, in the
consolidated income statement and a reduction of $41 million, net of tax, in
accumulated other comprehensive income (loss).
In June 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 141, Business Combinations, and Statement of
Financial Accounting Standards No. 142 (SFAS 142), Goodwill and Other Intangible
Assets, which modify the accounting for business combinations, goodwill and
identifiable intangible assets. All business combinations initiated after June
30, 2001, must be accounted for by the purchase method. Goodwill from
acquisitions completed after that date will not be amortized. The Company is
required to test all goodwill for impairment as of January 1, 2002, and record a
transition adjustment if impairment exists. The Company does not expect to
record a material transition adjustment in connection with such impairment
testing in 2002. As of January 1, 2002, goodwill has no longer been amortized
but will be charged to operations when specified tests indicate that the
goodwill is impaired. The Company recognized goodwill amortization expense of
$46 million in the three months ended March 31, 2001. Accordingly, income from
continuing operations and net income would have been $247 million ($0.21 per
share) and $184 million ($0.16 per share), respectively, in the three months
ended March 31, 2001, if the Company had not recognized amortization expense for
goodwill that is no longer being amortized in accordance with SFAS 142.
In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144 (SFAS 144), Accounting for the Impairment
or Disposal of Long-Lived Assets. This Statement supersedes Statement of
Financial Accounting Standards No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-lived Assets to Be Disposed Of, while retaining
many of its requirements regarding impairment loss recognition and measurement.
In addition, the new Statement requires the use of one accounting model for
long-lived assets to be disposed of by sale and broadens the presentation of
discontinued operations to include more disposal transactions. The Company
adopted this statement on January 1, 2002. The impact of adopting SFAS 144 was
not material, although the Company expects to present more disposals as
discontinued operations as a result of adopting SFAS 144.
Note 3 Summary of Consolidated Stockholders' Equity
Stockholders' equity at January 1, 2002......................................... $2,014
Comprehensive income:
Net income...................................................................... 114
Foreign currency translation adjustments........................................ 69
Unrealized gain on available-for-sale securities, net of tax.................... 10
Derivatives qualifying as hedges (SFAS 133), net of tax......................... 32
------
Total comprehensive income...................................................... 225
------
Stockholders' equity at March 31, 2002.......................................... $2,239
======
Note 4 Segment and Geographic Data
During 2001, the Company realigned its worldwide enterprise around customer
groups, replacing its former business segments with four end-user divisions, two
channel partner divisions, and a financial services division. The four end-user
divisions - Utilities, Process Industries, Manufacturing and Consumer
Industries, and Oil, Gas and Petrochemicals - serve end-user customers with
products, systems and services. The two channel partner divisions - Power
Technology Products and Automation Technology Products - serve external channel
partners such as wholesalers, distributors, original equipment manufacturers and
system integrators directly and end-user customers indirectly through the
end-user divisions. The Financial Services division provides services and
project support for the Company as well as for external customers.
o The Utilities division serves electric, gas and water utilities -
whether state-owned or private, global or local, operating in
liberalized or regulated markets - with a portfolio of products,
services and systems. The division's principal customers are
generators of power, owners and operators of power transmission
systems, energy traders and local distribution companies.
o The Process Industries division serves the chemical, gas, life
sciences, marine, metals, minerals, mining, cement, paper, petroleum,
printing and turbocharging industries with process-specific products
and services combined with the Company's power and automation
technologies.
o The Manufacturing and Consumer Industries division sells products,
solutions and services that improve customer productivity and
competitiveness in areas such as automotive industries,
telecommunications, consumer goods, food and beverage, product and
electronics manufacturing, airports, parcel and cargo distribution,
and public, industrial and commercial buildings.
o The Oil, Gas and Petrochemicals division supplies a comprehensive
range of products, systems and services to the global oil, gas and
petrochemicals industries, from the development of onshore and
offshore exploration technologies to the design and supply of
production facilities, refineries and petrochemicals plants.
o The Power Technology Products division covers the entire spectrum of
technology for power transmission and power distribution including
transformers, switchgear, breakers, capacitors and cables as well as
other products, platforms and technologies for high- and
medium-voltage applications. Power technology products are used in
industrial, commercial and utility applications. They are sold through
the Company's end user divisions as well as through external channel
partners, such as distributors, contractors and original equipment
manufacturers and system integrators.
o The Automation Technology Products division provides products,
software and services for the automation and optimisation of
industrial and commercial processes. Key technologies include
measurement and control, instrumentation, process analysis, drives and
motors, power electronics, robots, and low-voltage products, all
geared toward one common industrial IT architecture for real-time
automation and information solutions throughout a business. These
technologies are sold to customers through the end-user divisions as
well as through external channel partners such as wholesalers,
distributors, original equipment manufacturers and system integrators.
o The Financial Services division supports the Company's business and
customers with financial solutions in structured finance, leasing,
project development and ownership, financial consulting, insurance and
treasury activities.
The Company evaluates performance of its divisions based on earnings before
interest and taxes (EBIT), which excludes interest and dividend income, interest
expense, provision for taxes, minority interest, and income from discontinued
operations, net of tax. In accordance with Statement of Financial Accounting
Standards No. 131, Disclosures about Segments of an Enterprise and Related
Information, the Company presents division revenues, depreciation and
amortization, EBIT, and net operating assets, all of which have been restated to
reflect the changes to the Company's internal structure, including the effect of
increased inter-division transactions. Accordingly, division revenues and EBIT
are presented as if certain historical third-party sales by subsidiaries in the
product divisions had been routed through other divisions as they would have
been under the new customer-centric structure. Management has restated
historical division financial information in this way to allow analysis of
trends in division revenues and margins on a basis consistent with the Company's
new internal structure and transaction flow.
Recent developments
In line with the Company's strategy to focus on power and automation
technologies for utility and industry customers, the Company announced it
intends to divest the Building Systems business area, currently part of the
Manufacturing and Consumer Industries division. The other three business areas
in the Manufacturing and Consumer Industries division will be combined with the
Process Industries division into a new Industries division.
Segment data
Orders received Revenues
January - March January - March
-------------------- --------------------
2002 2001 2002 2001
-------- -------- -------- --------
Utilities....................... $ 1,455 $ 1,700 $ 1,075 $ 1,196
Process Industries.............. 808 1,055 633 775
Mfg and Consumer Industries..... 959 1,337 841 1,163
Oil, Gas and Petrochemicals..... 627 961 972 769
Power Technology Products....... 1,133 1,105 992 855
Automation Technology Products 1,320 1,419 1,221 1,276
Financial Services.............. 336 479 336 479
Corporate/ Other (1)............ (1,115) (1,270) (921) (1,133)
-------- ------- -------- --------
Total........................... $ 5,523 $ 6,786 $ 5,149 $ 5,380
======== ======== ======== ========
EBIT Depreciation and
(operating income) amortization
January - March January - March
-------------------- --------------------
2002 2001 2002 2001
-------- -------- -------- --------
Utilities....................... $ 32 $ 40 $ 12 $ 18
Process Industries.............. 30 35 9 17
Mfg and Consumer Industries..... (6) 37 6 12
Oil, Gas and Petrochemicals..... 45 41 11 17
Power Technology Products....... 66 64 32 29
Automation Technology Products 81 112 41 61
Financial Services.............. 82 84 4 6
Corporate/Other (1)............. (95) (79) 37 30
-------- ------- -------- --------
Total........................... $ 235 $ 334 $ 152 $ 190
======== ======== ======== ========
Net operating assets (2) Number of employees
----------------------------------- ------------------------------------
March 31, 2002 December 31, 2001 March 31, 2002 December 31, 2001
-------------- ----------------- -------------- -----------------
Utilities........................ $ 909 $ 795 16,265 15,745
Process Industries............... 866 738 15,895 15,937
Mfg and Consumer Industries...... 258 249 25,426 29,455
Oil, Gas and Petrochemicals...... 448 315 13,490 13,471
Power Technology Products........ 1,454 1,311 28,060 27,555
Automation Technology Products... 2,643 2,558 39,283 39,834
Financial Services............... 11,389 10,926 1,230 1,220
Corporate/Other (1).............. (3,689) (3,114) 12,180 13,648
-------- -------- ------- -------
Total............................ $14,278 $13,778 151,829 156,865
======== ======== ======= =======
(1) Includes adjustments to eliminate inter-division transactions.
(2) Net operating assets is calculated based upon total assets (excluding cash
and equivalents, marketable securities, current loans receivable, taxes and
deferred charges) less current liabilities (excluding borrowings, taxes,
provisions and pension-related liabilities).
Geographic Information
Orders received 1) Revenues 1)
January - March January - March
------------------ -----------------
2002 2001 2002 2001
------ ------ ------ ------
Europe.......................... $2,795 $3,699 $2,631 $2,940
The Americas.................... 1,652 1,828 1,222 1,400
Asia............................ 617 685 635 564
Middle East and Africa.......... 459 574 661 476
------ ------ ------ ------
Total........................... $5,523 $6,786 $5,149 $5,380
====== ====== ====== ======
1) Orders received and revenues have been reflected in the regions based on
the location of the customer.
Note 5 Summary balance sheets of ABB Ltd Consolidated, ABB Group and Financial
Services (unaudited)
In the balance sheet data appearing on this page, "ABB Ltd Consolidated" means
the accounts of ABB Ltd and all its subsidiaries presented in a summarized form
on the basis of US GAAP, with all significant intercompany balances eliminated
in consolidation.The balance sheet data for "Financial Services" and "ABB Group"
is reported on the same basis as management uses to evaluate segment performance
which includes the following adjustments:
- "Financial Services" represents the accounts of all subsidiaries in the
Company's Financial Services division, with net intercompany balances and
certain capital contributions received from other subsidiaries of the
Company presented on a one-line basis.
- "ABB Group" represents the accounts of ABB Ltd and all its subsidiaries
other than those in the Company's Financial Services division, with net
intercompany balances and the Company's investment in its Financial
Services division presented on a one-line basis. For the purposes of this
presentation, the Company's investment in its Financial Services division
is accounted for under the equity method of accounting.
ABB Ltd Consolidated ABB Group 1) Financial Services
US $ in millions
Mar 31, 2002 Dec 31, 2001 Mar 31, 2002 Dec 31, 2001 Mar 31, 2002 Dec 31, 2001
---------------------------------------------------------------------------------------
Cash and equivalents and marketable
securities............................. $ 6,583 $ 5,713 $ 2,699 $ 1,667 $ 3,884 $ 4,046
Receivables, net......................... 8,277 8,368 5,847 5,810 2,430 2,558
Inventories, net......................... 3,201 3,075 3,200 3,074 1 1
Prepaid expenses and other............... 1,973 2,358 1,114 1,169 859 1,189
------- ------- ------- ------- ------- -------
Total current assets..................... 20,034 19,514 12,860 11,720 7,174 7,794
------- ------- ------- ------- ------- -------
Financing receivables, non-current....... 4,399 4,263 545 452 3,854 3,811
Property, plant and equipment, net....... 3,045 3,003 2,967 2,938 78 65
Goodwill and other intangible assets,
net...................................... 3,284 3,299 3,201 3,217 83 82
Investments and other.................... 2,277 2,265 1,585 1,601 692 664
Net intercompany balances................ - - 634 - 940 2,106
------- ------- ------- ------- ------- -------
Total assets............................. $33,039 $32,344 $21,792 $19,928 $12,821 $14,522
======= ======= ======= ======= ======= =======
Accounts payable, trade.................. $ 3,916 $ 3,991 $ 3,890 $ 3,956 $ 26 $ 35
Accounts payable, other.................. 2,442 2,710 1,457 1,641 985 1,069
Short-term borrowings2).................. 6,683 4,747 3,288 240 3,395 4,507
Accrued liabilities and other............ 7,091 7,587 4,060 4,285 3,031 3,302
------- ------- ------- ------- ------- -------
Total current liabilities................ 20,132 19,035 12,695 10,122 7,437 8,913
------- ------- ------- ------- ------- -------
Long-term borrowings..................... 4,387 5,043 1,774 2,020 2,613 3,023
Pension and other related benefits....... 1,687 1,688 1,680 1,681 7 7
Deferred taxes........................... 1,387 1,360 664 575 723 785
Other liabilities........................ 2,990 2,989 2,523 2,529 467 460
Net intercompany balances................ - - - 773 - -
------- ------- ------- ------- ------- -------
Total liabilities........................ 30,583 30,115 19,336 17,700 11,247 13,188
------- ------- ------- ------- ------- -------
Minority interest........................ 217 215 217 214 - 1
Total stockholders' equity............... 2,239 2,014 2,239 2,014 1,574 1,333
------- ------- ------- ------- ------- -------
Total liabilities and stockholders'
equity................................. $33,039 $32,344 $21,792 $19,928 $12,821 $14,522
======= ======= ======= ======= ======= =======
1) ABB Industrial operations/holdings with equity accounting of participation
in Financial Services
2) Includes current maturities of long-term borrowings
3) Certain amounts reclassified to conform to the Company's current year
presentation
ABB Ltd and Consolidated Subsidiaries
Three Months Ended March 2002
Appendix A - Historical Divisional Data
Restructuring & related asset writedowns Q1/2002 Q4/2001 Q3/2001 Q2/2001 Q1/2001
Utilities -2 -27 -1 0 4
Process industries -5 -27 -2 0 0
Manufacturing -10 -15 1 -1 0
Oil, gas & petrochemicals 0 -2 -6 0 0
Power technology -31 -41 -1 -5 -5
Automation products -12 -41 -4 -1 0
Financial services 0 0 0 0 0
Corporate 5 -45 0 -8 -5
----------------------------------------------------------------------------------------------
Total -55 -198 -13 -15 -6
----------------------------------------------------------------------------------------------
Non-recurring goodwill amortization (SFAS 142) Q1/2002 Q4/2001 Q3/2001 Q2/2001 Q1/2001
Utilities 0 -6 -6 -6 -6
Process industries 0 -9 -9 -8 -8
Manufacturing 0 -3 -2 -2 -3
Oil, gas & petrochemicals 0 -9 -7 -8 -8
Power technology 0 2 -1 -1 -1
Automation products 0 -15 -15 -14 -14
Financial services 0 -2 -2 -2 -2
Corporate 0 -9 -4 -3 -4
-----------------------------------------------------------------------------------------------------
Total 0 -55 -46 -44 -46
-----------------------------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ABB LTD
Date: May 14, 2002 By: /s/ BEAT HESS
------------------------------
Name: Beat Hess
Title: Group Senior Officer
By: /s/ HANS ENHORNING
------------------------------
Name: Hans Enhorning
Title: Group Vice President