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 February 2011

 

Commission File Number 001-16429

 

ABB Ltd

(Translation of registrant’s 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.

 

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 registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s 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 registrant’s 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.

 

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 February 17, 2011.

2.               Press release issued by ABB Ltd regarding change to Executive Committee dated February 17, 2011.

3.               Announcements regarding transactions in ABB Ltd’s Securities made by the directors or the 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 Statements on Form S-8 (Registration No. 333-129271 and Registration No. 333-171971).

 

2



 

 

Press Release

 

ABB emerges stronger from 2010 as growth accelerates on industrial demand

 

·             Q4 growth accelerates: Orders up 18%(1), revenues 6% higher

·             Energy efficiency, industrial productivity and grid reliability drive demand

·             Q4 operational EBIT margin(2) of 12.3% within target range on growth and cost savings

·             $1.8 billion in cash from operations close to previous year’s record Q4

·             Proposed dividend increase to CHF 0.60 per share shows confidence in the business

·             Additional cost savings of more than $1 billion targeted for 2011

 

Zurich, Switzerland, Feb. 17, 2011 — ABB reported strong order growth in the fourth quarter of 2010 and higher revenues driven by strong industrial demand for energy efficiency and improved productivity as well as recovering investments into power infrastructure.

 

The positive trend was reflected in a 17-percent increase in base orders (less than $15 million) — higher in all divisions — as industrial customers expanded capacity and improved efficiency. Orders also increased for power distribution equipment used to deliver reliable power to industrial and commercial customers. Large orders (above $15 million) increased by 21 percent on the award of several large power transmission projects in Europe and the Middle East.

 

Earnings before interest and taxes (EBIT) rose 23 percent to $978 million. EBIT includes previously-announced provisions of approximately $120 million, mostly related to a large project in the Power Systems division. Restructuring-related costs in the quarter were approximately $120 million.

 

The operational EBIT margin was 12.3 percent in the quarter despite the project charges and continued price pressure. ABB’s operational EBIT margin for the full-year and fourth-quarter 2010 was well within its target range of 11-16 percent.

 

The company’s $3-billion cost take-out program was completed on target in the fourth quarter. ABB plans to further reduce costs in 2011 by more than $1 billion.

 

Net income increased 30 percent to reach $700 million, while cash from operations was near last year’s record. Net cash at the end of the quarter was $6.4 billion. ABB’s Board of Directors has recommended a dividend of 0.60 Swiss francs per share, up from 0.51 Swiss francs last year.

 

2010 Q4 and full-year key figures

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

FY 2010

 

FY 2009

 

US$

 

Local

 

Orders

 

8,752

 

7,450

 

17

%

18

%

32,681

 

30,969

 

6

%

4

%

Order backlog (end Dec)

 

26,193

 

24,771

 

6

%

4

%

 

 

 

 

 

 

 

 

Revenues

 

9,179

 

8,761

 

5

%

6

%

31,589

 

31,795

 

-1

%

-2

%

EBIT

 

978

 

798

 

23

%

 

 

3,818

 

4,126

 

-7

%

 

 

as % of revenues

 

10.7

%

9.1

%

 

 

 

 

12.1

%

13.0

%

 

 

 

 

Net income

 

700

 

540

 

30

%

 

 

2,561

 

2,901

 

-12

%

 

 

Basic net income per share ($)

 

0.31

 

0.24

 

 

 

 

 

1.12

 

1.27

 

 

 

 

 

Dividend per share (CHF)*

 

 

 

 

 

 

 

 

 

0.60

 

0.51

 

 

 

 

 

Cash flow from operations

 

1,759

 

1,783

 

-1

%

 

 

4,197

 

4,027

 

4

%

 

 

Free cash flow

 

 

 

 

 

 

 

 

 

3,397

 

3,089

 

10

%

 

 

As % of net income

 

 

 

 

 

 

 

 

 

133

%

106

%

 

 

 

 

Return on capital employed

 

 

 

 

 

 

 

 

 

21

%

27

%

 

 

 

 

 


* Proposed by the Board of Directors

 

(1)  Management discussion of orders and revenues focuses on local currency changes. U.S. dollar changes are reported in the results tables.

(2)  See Reconciliation of Non-GAAP financial measures at the end of this release

 

3



 

Management comments

 

“We are satisfied with the 2010 results as ABB is today in a stronger position than before the financial crisis,” said Chief Executive Officer Joe Hogan. “Demand from industry and utility clients for short-cycle products gained momentum, contributing to the fastest base order growth in the past two years. Revenue growth accelerated compared to the third quarter, driven by strong industrial demand for energy efficiency and higher productivity. We achieved profitability well within our target range by leveraging our lower cost base. That allowed us to benefit from the ongoing recovery in automation and to successfully counter demand and price weakness in our longer-cycle businesses.

 

“The proposed dividend increase shows our confidence in the business. We see plenty of growth opportunities as we head into 2011 in both the short-term industry-driven businesses as well as later in the year when we expect utility spending on power equipment to begin a recovery,” Hogan said. “Long term trends for increased energy efficiency and flexible, more reliable power infrastructure remain very strong. ABB will seize these opportunities with a leaner cost base, an enhanced product portfolio and a more customer-focused organization.”

 

Summary of Q4 2010 results

 

Orders received and revenues

 

Orders increased strongly in the fourth quarter compared to the year-earlier period as industrial customers continued to invest in automation solutions to increase capacity and to improve productivity and energy efficiency. In particular, orders improved in the minerals, marine, pulp and paper and oil, gas and petrochemicals sectors. Utilities and industrial customers also invested more in power distribution systems and equipment in the fourth quarter in response to higher demand for reliable power.

 

Order growth was also supported by the award of several large power transmission projects in Europe and the Middle East during the quarter, confirming the longer-term trend to interconnect power grids and strengthen power transmission infrastructure in both mature and emerging economies. However, utility demand for standard power transmission products remained at low levels.

 

Base orders increased 17 percent in the quarter and were higher in all divisions. Large orders increased by 21 percent and represented about 19 percent of total orders in the quarter, as in the year-earlier period.

 

Regionally, orders in local currencies were 37 percent higher in Europe compared with the same period in 2009, as both large and base orders increased. These orders included a high-voltage direct current (HVDC) link between Sweden and Lithuania across the Baltic Sea valued at approximately $580 million.

 

In the Americas, orders grew by 22 percent. Orders in the U.S. increased by 13 percent and were higher in all divisions except Low-Voltage Products. Power orders and customer investments in the mining sector contributed to a 58-percent order increase in South America. Orders from the Middle East and Africa were up 8 percent, mainly on increased orders from power utilities.

 

Orders were down 5 percent in Asia as lower power orders in China and India offset strong increases in all three automation divisions across most of the region, reflecting the high level of industrial activity.

 

4



 

Revenues grew in the quarter, largely the result of strong growth in the short- to mid-cycle automation businesses as recent order increases flowed through to revenues. Power Systems revenues also increased on execution of the strong order backlog. Service revenues increased 8 percent in local currencies during the quarter. For the full year 2010, service revenues represented 17 percent of total revenues compared to 16 percent in 2009.

 

The order backlog at the end of December 2010 amounted to $26.2 billion, corresponding to a local-currency increase of 4 percent compared to the end of 2009. Compared to the end of the third quarter of 2010, the order backlog is down 2 percent.

 

Earnings before interest and taxes

 

EBIT and EBIT margin increased compared with the same quarter a year earlier, driven in part by the favorable impact of higher revenues in the early- and mid-cycle businesses—mainly on the automation side—where fixed cost reductions are most advanced. Restructuring-related costs of approximately $120 million in the quarter were significantly below the $350 million recorded in the same quarter in 2009. EBIT in the fourth quarter of 2010 included costs of approximately $120 million in the Power Systems division, most of which are related to a cable project that was the subject of previously-announced provisions.

 

The operational EBIT margin in the fourth quarter of 2010, which excludes from EBIT the impact of restructuring-related costs and the mark-to-market valuation of hedging transactions, was 12.3 percent compared with 12.7 percent the same quarter in 2009, mainly the result of the additional project provision taken in Power Systems.

 

Cost reductions

 

ABB completed its previously-announced cost take-out program in the fourth quarter and fully achieved its targets. The program was intended to sustainably reduce ABB’s 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.

 

Cost reductions in the fourth quarter of 2010 amounted to approximately $370 million, of which almost half were achieved by optimizing global sourcing (excluding the impact of commodity price changes) and approximately 20 percent from global footprint initiatives. The remainder was achieved through reductions to general and administrative expenses and operational excellence measures. For the full year 2010, savings amounted to approximately $1.5 billion.

 

Costs associated with the program in the fourth quarter of 2010 amounted to approximately $120 million, bringing the total cost of the program to approximately $840 million.

 

ABB intends to continue taking out costs in 2011 through supply management, footprint optimization and operational excellence measures. The level of savings is expected to exceed $1 billion and will be determined by market factors such as demand, raw material costs, capacity utilization and pricing environment in ABB’s various businesses. The cost associated with such measures is not expected to exceed a level equivalent to 0.8 percent of full-year 2011 revenues.

 

Acquisitions

 

In January 2011, ABB completed its acquisition of Baldor Electric, a North American leader in industrial motors. The transaction, which was originally announced on November 30, 2010, was valued at $4.2 billion, including approximately $1.2 billion of debt, and is an important step in ABB’s strategy to build its position in the key North American industrial automation market. The business is

 

5



 

being integrated into the Discrete Automation and Motion division with results consolidated in ABB’s financial statements from late January, 2011.

 

In 2010, ABB acquired U.S.-based software supplier Ventyx to provide energy management software solutions globally to utilities and industry. The business is part of the Power Systems division and its results have been consolidated into the Group since June 2010.

 

In addition, ABB increased its share in ABB India from 52 percent to 75 percent in 2010 at a cost of approximately $950 million.

 

For the fiscal year 2010, ABB spent approximately $1.3 billion on acquisitions (excluding the India transaction) aimed at positioning itself for significant future growth opportunities.

 

Balance sheet and cash flow

 

Net cash at the end of the fourth quarter was $6.4 billion compared with $5.3 billion at the end of the previous quarter. Cash flow from operations amounted to $1.8 billion, close to the record level reported in the same quarter in 2009. The good performance reflects solid working capital management, especially improved receivables collection. The contribution to cash flow from customer advances also increased significantly compared to the same quarter in 2009.

 

ABB paid a total of approximately $4.2 billion in January 2011 to acquire all of the outstanding shares of Baldor Electric and repay Baldor’s outstanding debt.

 

Increased dividend

 

ABB’s Board of Directors has proposed a dividend for 2010 of 0.60 Swiss francs per share, compared to 0.51 Swiss francs per share in the prior year. The proposal is in line with the company’s dividend policy to pay a steadily rising but sustainable dividend over the cycle. The Board also proposes that the dividend is taken from the capital contribution reserve of ABB Ltd which, under recent changes to Swiss tax regulations, would not be subject to Swiss withholding tax. The company can draw on a total of approximately 6.4 billion Swiss francs under the capital contribution reserve from stockholders’ equity for current and future dividend payments. The proposal is subject to approval by shareholders at the company’s annual general meeting on April 29, 2011. This form of dividend would replace the nominal value reduction used in the previous three years. If approved, the ex-dividend date would be May 3, 2011 and the payout date in Switzerland would be May 6, 2011.

 

Outlook

 

For 2011, ABB expects continued demand growth in all regions for power and automation solutions that help customers build and upgrade power infrastructure and improve industrial efficiency and productivity.

 

Emerging markets will again be significant drivers of growth as they build up their electrical grids and expand industrial production with a major focus on improving energy efficiency and industrial process quality. An important demand driver in these countries is the development of power resources, such as hydro and wind, which are often long distances from end users and require reliable, high-efficiency power transmission technologies. Demand for commodities to fuel economic growth and the need to become more globally competitive in product quality is expected to drive demand for industrial automation solutions in the emerging markets.

 

Demand in mature markets is also expected to improve. Utilities are expected to continue investments in grid interconnections, the integration of renewable energies into existing grids, the replacement and refurbishment of existing grid assets, and smart grid technologies. Following two

 

6



 

years of lower capital investment in power transmission in many regions, ABB expects an increase in utility spending on standard power transmission products, most likely beginning in the second half of the year.

 

Industrial customers in the mature economies are also expected to invest further in improving the productivity of their existing manufacturing assets. Increased construction activity in parts of northern Europe and the trend towards intelligent buildings is a further demand driver for ABB’s automation solutions in mature markets.

 

At the same time, recent competitive trends are expected to continue through 2011 and beyond. Increased capacity in the power equipment sector over the past several years will continue to exert price pressure on suppliers. This pressure is expected to persist for several quarters after demand begins to recover. Emerging market players are expected to continue to expand beyond their home markets with competitive products aimed mainly at the mid-quality segment and primarily in power equipment.

 

Therefore, in 2011 management will focus on taking advantage of the significant growth opportunities that are emerging across its technology and geographic portfolio. ABB intends to increase its capital expenditures, again with a focus on building its position in emerging markets. Investment in sales and research and development activities will also increase to support both growth and profitability. Cost control will also remain a high priority to ensure both ABB’s competitiveness in the market as well as securing profitability within the company’s target ranges.

 

Divisional performance Q4 2010

 

Power Products

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

FY 2010

 

FY 2009

 

US$

 

Local

 

Orders

 

2,533

 

2,667

 

-5

%

-5

%

9,778

 

10,940

 

-11

%

-13

%

Order backlog (end Dec)

 

7,930

 

8,226

 

-4

%

-5

%

 

 

 

 

 

 

 

 

Revenues

 

2,913

 

3,109

 

-6

%

-6

%

10,199

 

11,239

 

-9

%

-11

%

EBIT

 

453

 

495

 

-8

%

 

 

1,622

 

1,969

 

-18

%

 

 

as % of revenues

 

15.6

%

15.9

%

 

 

 

 

15.9

%

17.5

%

 

 

 

 

Cash flow from operating activities

 

658

 

754

 

 

 

 

 

1,756

 

1,977

 

 

 

 

 

 

Orders for medium-voltage products and distribution transformers increased during the quarter, driven by industrial growth and a recovery in the power distribution sector, notably in North America. Orders also grew at a double-digit pace in western Europe, mainly the result of higher transformer orders. However, these increases could not compensate order declines in large power transformers and some high-voltage equipment resulting from fewer large power transmission projects, mainly in China.

 

Revenues decreased during the quarter compared with the high levels of the same period in the previous year, reflecting the lower level of orders received during recent quarters.

 

The lower EBIT in the quarter reflects the decrease in revenues. The EBIT margin remained in-line with the year-earlier period as cost-reduction measures offset the impacts of lower volumes and price levels.

 

7



 

Power Systems

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

FY 2010

 

FY 2009

 

US$

 

Local

 

Orders

 

2,626

 

1,863

 

41

%

40

%

7,896

 

7,830

 

1

%

-1

%

Order backlog (end Dec)

 

10,929

 

9,675

 

13

%

12

%

 

 

 

 

 

 

 

 

Revenues

 

2,088

 

1,908

 

9

%

10

%

6,786

 

6,549

 

4

%

2

%

EBIT

 

5

 

66

 

-92

%

 

 

111

 

388

 

-71

%

 

 

as % of revenues

 

0.2

%

3.5

%

 

 

 

 

1.6

%

5.9

%

 

 

 

 

Cash flow from operating activities

 

512

 

242

 

 

 

 

 

443

 

333

 

 

 

 

 

 

Strong increases in both base and large orders contributed to a record quarter for orders received in the Power Systems division and further strengthened the order backlog. Large orders increased by more than 20 percent and included a $580-million order to link the power grids of Sweden and Lithuania across the Baltic Sea, as well as a number of substation orders in the Middle East. Base orders were higher in all business units, helped by the industrial recovery and the ongoing focus on renewable energy and grid reliability. Orders grew at a double-digit pace in all regions except Asia, where orders in India declined from a high level the year before.

 

Revenue growth reflected mainly execution of the strong order backlog and was supported by the acquisition earlier in the year of U.S.-based energy software company Ventyx.

 

EBIT and EBIT margin were negatively impacted by charges of approximately $120 million, most of which are related to a cable project that was the subject of previously-announced provisions.

 

Discrete Automation and Motion

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

FY 2010

 

FY 2009

 

US$

 

Local

 

Orders

 

1,505

 

1,142

 

32

%

34

%

5,862

 

4,702

 

25

%

23

%

Order backlog (end Dec)

 

3,350

 

3,046

 

10

%

8

%

 

 

 

 

 

 

 

 

Revenues

 

1,657

 

1,470

 

13

%

14

%

5,617

 

5,405

 

4

%

3

%

EBIT

 

285

 

43

 

n/a

 

 

 

926

 

557

 

66

%

 

 

as % of revenues

 

17.2

%

2.9

%

 

 

 

 

16.5

%

10.3

%

 

 

 

 

Cash flow from operating activities

 

204

 

236

 

 

 

 

 

573

 

745

 

 

 

 

 

 

Orders increased in the fourth quarter as industrial customers continued to invest in automation solutions to increase productivity and energy efficiency. Orders increased in all business units and were particularly strong in robotics and in the mid- to later-cycle businesses, such as power electronics, medium-voltage drives and generators. Orders for low-voltage drives also grew strongly. Regionally, orders grew at a strong double-digit pace in Europe, the Americas and Asia. Orders in China were up more than 40 percent compared to the same quarter in 2009.

 

The revenue increase was driven primarily by execution of the strong order backlog in the shorter-cycle businesses such as robotics, low-voltage motors and drives.

 

EBIT and EBIT margin increased substantially due in part to a return to profitability in robotics, which reported an EBIT loss in the same period last year, mainly due to restructuring-related costs of some $110 million. Successful operational cost reduction measures and footprint changes towards the emerging markets during the year also contributed to the improved earnings.

 

8



 

Low Voltage Products

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

FY 2010

 

FY 2009

 

US$

 

Local

 

Orders

 

1,142

 

1,027

 

11

%

14

%

4,686

 

4,079

 

15

%

15

%

Order backlog (end Dec)

 

838

 

734

 

14

%

14

%

 

 

 

 

 

 

 

 

Revenues

 

1,254

 

1,109

 

13

%

16

%

4,554

 

4,071

 

12

%

13

%

EBIT

 

198

 

149

 

33

%

 

 

806

 

519

 

55

%

 

 

as % of revenues

 

15.8

%

13.4

%

 

 

 

 

17.7

%

12.7

%

 

 

 

 

Cash flow from operating activities

 

280

 

285

 

 

 

 

 

717

 

665

 

 

 

 

 

 

Orders and revenues increased across all businesses as demand from general industry and construction improved in most regions. In particular, demand increased for low-voltage components used in solar power generation and critical power applications to ensure the delivery of reliable and high-quality electricity to “mission-critical” businesses such as data centers, hospitals and electronic trading rooms. Service orders grew at the same pace as total orders.

 

Order growth in Europe was led by increased demand in the construction and industry sectors. Order growth was strong in Asia and the Americas, while orders were slightly lower in the Middle East and Africa.

 

EBIT and EBIT margin reflect both higher revenues and the sustained cost savings achieved during 2010.

 

Process Automation

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

FY 2010

 

FY 2009

 

US$

 

Local

 

Orders

 

1,764

 

1,422

 

24

%

25

%

7,383

 

6,684

 

10

%

7

%

Order backlog (end Dec)

 

5,530

 

5,523

 

0

%

-1

%

 

 

 

 

 

 

 

 

Revenues

 

2,101

 

2,054

 

2

%

4

%

7,432

 

7,839

 

-5

%

-6

%

EBIT

 

200

 

170

 

18

%

 

 

755

 

643

 

17

%

 

 

as % of revenues

 

9.5

%

8.3

%

 

 

 

 

10.2

%

8.2

%

 

 

 

 

Cash flow from operating activities

 

222

 

327

 

 

 

 

 

738

 

695

 

 

 

 

 

 

Growth in large orders continued in the fourth quarter, especially in minerals, marine and oil, gas and petrochemicals, reflecting ongoing investments in the energy and commodity sectors. Orders for products such as turbochargers and measurement products also grew. Lifecycle services — including installation and commissioning, spare parts, retrofit and replacement and training — saw higher orders, driven by oil, gas and petrochemicals, metals, and pulp and paper.

 

Regionally, order growth was strong in South America — led by minerals investments in Chile and Peru — and Asia, where demand increased from the minerals sector in China and the marine sector in South Korea. Orders were also up at a double-digit pace in Europe and North America.

 

The revenue increase was driven by stronger product volumes and lifecycle services, as well as the ongoing execution of projects from the order backlog, especially in the oil, gas and petrochemicals and pulp and paper businesses.

 

Higher EBIT and EBIT margin reflect the successful implementation of cost reduction measures and the higher share of revenues from product and service sales compared to the same quarter a year earlier. Included in fourth quarter EBIT is approximately $30 million in restructuring-related costs compared to some $80 million in the same quarter of 2009.

 

9



 

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 124,000 people.

 

Zurich, Feb. 17, 2011
Joe Hogan, CEO

 

More information

 

The 2010 Q4 results press release and presentation slides are available on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations.

 

ABB will host a press conference today starting at 10:00 a.m. Central European Time (CET). U.K. callers should dial +44 203 059 58 62. From Sweden, the number is +46 8 5051 00 31, 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 24 hours: Playback numbers: +44 207 108 6233 (U.K.), +41 91 612 4330 (rest of Europe) or +1 866 416 2558 (U.S./Canada). The code is 15872, followed by the # key.

 

A meeting for analysts and investors is scheduled to begin today at 2:00 p.m. CET (8:00 a.m. EST). Callers should dial +1 866 291 4166 (from the U.S./Canada), + 44 203 059 5862 (from the U.K.), or +41 91 610 56 00 (the rest of the world). Callers are requested to phone in 10 minutes before the start of the call. There is no PIN for the live call. The recorded session will be available as a podcast one hour after the end of the call and can be downloaded from our website. The 2010 full-year results presentation will be broadcast live via the Internet and will be archived at www.abb.com/investorrelations for one month from approximately two hours after the live Webcast.

 

Investor calendar 2011

 

 

Q1 2011 results

 

April 27, 2011

Annual General Meeting of shareholders (Zurich, Switzerland)

 

April 29, 2011

Annual Information Meeting (Västerås, Sweden)

 

May 2, 2011

Q2 2011 results

 

July 21, 2011

Q3 2011 results

 

Oct. 27, 2011

 

Important notice about forward-looking information

 

This press release includes forward-looking information and statements including the sections entitled “Increased dividend,” “Cost reductions,” 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 related to the economic environment, costs associated with compliance activities, the amount of revenues we are able to generate from backlog and orders received, raw materials prices, market acceptance of new products and services, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s 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:

 

Media Relations:

Investor Relations:

ABB Ltd

Thomas Schmidt, Antonio Ligi

Switzerland: Tel. +41 43 317 7111

Affolternstrasse 44

(Zurich, Switzerland)

USA: Tel. +1 203 750 7743

CH-8050 Zurich, Switzerland

Tel: +41 43 317 6568

investor.relations@ch.abb.com

 

media.relations@ch.abb.com

 

 

 

10



 

ABB Q4 and full-year 2010 key figures

 

 

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 10

 

Q4 09

 

US$

 

Local

 

2010

 

2009

 

US$

 

Local

 

Orders

 

Group

 

8,752

 

7,450

 

17

%

18

%

32,681

 

30,969

 

6

%

4

%

 

 

Power Products

 

2,533

 

2,667

 

-5

%

-5

%

9,778

 

10,940

 

-11

%

-13

%

 

 

Power Systems

 

2,626

 

1,863

 

41

%

40

%

7,896

 

7,830

 

1

%

-1

%

 

 

Discrete Automation & Motion

 

1,505

 

1,142

 

32

%

34

%

5,862

 

4,702

 

25

%

23

%

 

 

Low Voltage Products

 

1,142

 

1,027

 

11

%

14

%

4,686

 

4,079

 

15

%

15

%

 

 

Process Automation

 

1,764

 

1,422

 

24

%

25

%

7,383

 

6,684

 

10

%

7

%

 

 

Corporate (consolidation)

 

(818

)

(671

)

 

 

 

 

(2,924

)

(3,266

)

 

 

 

 

Revenues

 

Group

 

9,179

 

8,761

 

5

%

6

%

31,589

 

31,795

 

-1

%

-2

%

 

 

Power Products

 

2,913

 

3,109

 

-6

%

-6

%

10,199

 

11,239

 

-9

%

-11

%

 

 

Power Systems

 

2,088

 

1,908

 

9

%

10

%

6,786

 

6,549

 

4

%

2

%

 

 

Discrete Automation & Motion

 

1,657

 

1,470

 

13

%

14

%

5,617

 

5,405

 

4

%

3

%

 

 

Low Voltage Products

 

1,254

 

1,109

 

13

%

16

%

4,554

 

4,071

 

12

%

13

%

 

 

Process Automation

 

2,101

 

2,054

 

2

%

4

%

7,432

 

7,839

 

-5

%

-6

%

 

 

Corporate (consolidation)

 

(834

)

(889

)

 

 

 

 

(2,999

)

(3,308

)

 

 

 

 

EBIT

 

Group

 

978

 

798

 

23

%

 

 

3,818

 

4,126

 

-7

%

 

 

 

 

Power Products

 

453

 

495

 

-8

%

 

 

1,622

 

1,969

 

-18

%

 

 

 

 

Power Systems

 

5

 

66

 

-92

%

 

 

111

 

388

 

-71

%

 

 

 

 

Discrete Automation & Motion

 

285

 

43

 

n/a

 

 

 

926

 

557

 

66

%

 

 

 

 

Low Voltage Products

 

198

 

149

 

33

%

 

 

806

 

519

 

55

%

 

 

 

 

Process Automation

 

200

 

170

 

18

%

 

 

755

 

643

 

17

%

 

 

 

 

Corporate

 

(163

)

(125

)

 

 

 

 

(402

)

50

 

 

 

 

 

EBIT margin

 

Group

 

10.7

%

9.1

%

 

 

 

 

12.1

%

13.0

%

 

 

 

 

 

 

Power Products

 

15.6

%

15.9

%

 

 

 

 

15.9

%

17.5

%

 

 

 

 

 

 

Power Systems

 

0.2

%

3.5

%

 

 

 

 

1.6

%

5.9

%

 

 

 

 

 

 

Discrete Automation & Motion

 

17.2

%

2.9

%

 

 

 

 

16.5

%

10.3

%

 

 

 

 

 

 

Low Voltage Products

 

15.8

%

13.4

%

 

 

 

 

17.7

%

12.7

%

 

 

 

 

 

 

Process Automation

 

9.5

%

8.3

%

 

 

 

 

10.2

%

8.2

%

 

 

 

 

 

Q4 2010 orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions 

 

Q4 10

 

Q4 09

 

US$

 

Local

 

Q4 10

 

Q4 09

 

US$

 

Local

 

Europe

 

3,789

 

2,872

 

32

%

37

%

3,558

 

3,484

 

2

%

8

%

Americas

 

1,762

 

1,415

 

25

%

22

%

1,840

 

1,576

 

17

%

15

%

Asia

 

2,041

 

2,079

 

-2

%

-5

%

2,592

 

2,379

 

9

%

5

%

Middle East and Africa

 

1,160

 

1,084

 

7

%

8

%

1,189

 

1,322

 

-10

%

-8

%

Group total

 

8,752

 

7,450

 

17

%

18

%

9,179

 

8,761

 

5

%

6

%

 

Full-year 2010 orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions 

 

2010

 

2009

 

US$

 

Local

 

2010

 

2009

 

US$

 

Local

 

Europe

 

13,781

 

11,983

 

15

%

16

%

12,378

 

13,093

 

-5

%

-4

%

Americas

 

6,223

 

5,996

 

4

%

-1

%

6,213

 

6,049

 

3

%

-1

%

Asia

 

8,720

 

8,197

 

6

%

2

%

8,872

 

8,684

 

2

%

-2

%

Middle East and Africa

 

3,957

 

4,793

 

-17

%

-19

%

4,126

 

3,969

 

4

%

4

%

Group total

 

32,681

 

30,969

 

6

%

4

%

31,589

 

31,795

 

-1

%

-2

%

 

11



 

Operational EBIT by division, Q4 and full-year 2010

 

 

 

Power
Products

 

Power
Systems

 

Discrete Automation
& Motion

 

Low Voltage
Products

 

Process 
Automation

 

Quarterly

 

Q4 10

 

Q4 09

 

Q4 10

 

Q4 09

 

Q4 10

 

Q4 09

 

Q4 10

 

Q4 09

 

Q4 10

 

Q4 09

 

Reported EBIT

 

453

 

495

 

5

 

66

 

285

 

43

 

198

 

149

 

200

 

170

 

Derivative impact

 

0

 

-23

 

15

 

24

 

-11

 

-18

 

-4

 

-4

 

46

 

-5

 

Restructuring-related costs

 

23

 

39

 

23

 

76

 

10

 

127

 

29

 

19

 

29

 

79

 

Operational EBIT

 

476

 

511

 

43

 

166

 

284

 

152

 

223

 

164

 

275

 

244

 

 

Full year

 

FY 10

 

FY 09

 

FY 10

 

FY 09

 

FY 10

 

FY 09

 

FY 10

 

FY 09

 

FY 10

 

FY 09

 

Reported EBIT

 

1,622

 

1,969

 

111

 

388

 

926

 

557

 

806

 

519

 

755

 

643

 

Derivative impact

 

4

 

-85

 

58

 

2

 

2

 

-29

 

-3

 

-6

 

46

 

41

 

Restructuring-related costs

 

44

 

77

 

48

 

90

 

35

 

154

 

36

 

67

 

44

 

114

 

Operational EBIT

 

1,670

 

1,961

 

217

 

480

 

963

 

682

 

839

 

580

 

845

 

798

 

 

Reconciliation of non-GAAP measures

($ in millions)

 

 

 

3 months ended Dec. 31,

 

Year ended 
Dec. 31,

 

 

 

2010

 

2009

 

2010

 

EBIT Margin

 

 

 

 

 

 

 

(= EBIT as % of revenues)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest and taxes (EBIT)

 

978

 

798

 

3’818

 

Revenues

 

9’179

 

8’761

 

31’589

 

EBIT Margin

 

10.7

%

9.1

%

12.1

%

 

 

 

 

 

 

 

 

EBIT as per financial statements

 

978

 

798

 

3’818

 

adjusted for the effects of:

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives (FX, commodities, embedded derivatives)

 

26

 

37

 

3

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

(2

)

(42

)

9

 

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

 

11

 

(27

)

79

 

Restructuring and restructuring-related expenses

 

116

 

339

 

213

 

Operational EBIT

 

1’129

 

1’105

 

4’122

 

 

 

 

 

 

 

 

 

Revenues as per financial statements

 

9’179

 

8’761

 

31’589

 

adjusted for the effects of:

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives

 

17

 

6

 

(80

)

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

(21

)

(56

)

(28

)

Unrealized foreign exchange movements on receivables (and related assets)

 

36

 

 

100

 

Operational Revenues

 

9’211

 

8’711

 

31’581

 

 

 

 

 

 

 

 

 

Operational EBIT Margin (= Operational EBIT as % of Operational Revenues)

 

12.3

%

12.7

%

13.1

%

 

12



 

 

 

Dec. 31,

 

Sep. 30,

 

 

 

2010

 

2010

 

Net Cash

 

 

 

 

 

(= Cash and equivalents plus marketable securities and short-term investments, less total debt)

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

5’897

 

5’269

 

Marketable securities and short-term investments

 

2’713

 

2’353

 

Cash and marketable securities

 

8’610

 

7’622

 

Short-term debt and current maturities of long-term debt

 

1’043

 

253

 

Long-term debt

 

1’139

 

2’080

 

Total debt

 

2’182

 

2’333

 

Net Cash

 

6’428

 

5’289

 

 

 

 

Year ended Dec. 31,

 

 

 

2010

 

2009

 

Free Cash Flow

 

 

 

 

 

(= Net cash provided by operating activities adjusted for i) changes in financing receivables and ii) purchases of property, plant and equipment and intangible assets and iii) proceeds from sales of property, plant and equipment)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activites

 

4’197

 

4’027

 

adjusted for the effects of:

 

 

 

 

 

Changes in financing receivables

 

(7

)

(7

)

Purchases of property, plant and equipment and intangible assets

 

(840

)

(967

)

Proceeds from sales of property, plant and equipment

 

47

 

36

 

Free Cash Flow

 

3’397

 

3’089

 

Net Income attributable to ABB

 

2’561

 

2’901

 

Free Cash Flow as % of Net Income

 

133

%

106

%

 

Free cash flow as a percentage of net income (also referred to as “cash conversion ratio”) is a financial measure that management believes is helpful in analyzing the cash generated. Management uses Free cash flow as a percentage of net income as a performance target.

 

 

 

Year ended Dec. 31,

 

 

 

2010

 

2009

 

Return on Capital Employed (ROCE)

 

 

 

 

 

(= EBIT x (1-tax rate) / Capital Employed)

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

3’818

 

4’126

 

Provision for taxes

 

(1’018

)

(1’001

)

Income from continuing operations before taxes

 

3’740

 

4’120

 

Tax rate

 

27

%

24

%

Capital employed

 

 

 

 

 

(= fixed assets and net working capital)

 

 

 

 

 

Property, plant and equipment, net

 

4’356

 

4’072

 

Goodwill

 

4’085

 

3’026

 

Other intangible assets, net

 

701

 

443

 

Investments in equity method companies

 

19

 

49

 

Total fixed assets

 

9’161

 

7’590

 

Receivables, net

 

9’970

 

9’451

 

Inventories, net

 

4’878

 

4’550

 

Prepaid expenses

 

193

 

236

 

Accounts payable, trade

 

(4’555

)

(3’853

)

Billings in excess of sales

 

(1’730

)

(1’623

)

Accounts payable, other

 

(1’526

)

(1’326

)

Advances from customers

 

(1’764

)

(1’806

)

Accrued expenses

 

(1’644

)

(1’600

)

Net working capital

 

3’822

 

4’029

 

Capital employed

 

12’983

 

11’619

 

ROCE (after tax)

 

21

%

27

%

 

Return on capital employed is a financial measure (defined above) that management believes is a useful measure to assess how efficiently we are using our capital.

 

13


 


 

ABB Ltd Interim Consolidated Income Statements (unaudited)

 

 

 

Year ended

 

Three months ended

 

($ in millions, except per share data in $)

 

Dec. 31, 2010

 

Dec. 31, 2009

 

Dec. 31, 2010

 

Dec. 31, 2009

 

 

 

 

 

 

 

 

 

 

 

Sales of products

 

26,291

 

26,820

 

7,628

 

7,298

 

Sales of services

 

5,298

 

4,975

 

1,551

 

1,463

 

Total revenues

 

31,589

 

31,795

 

9,179

 

8,761

 

Cost of products

 

(18,607

)

(19,057

)

(5,563

)

(5,241

)

Cost of services

 

(3,453

)

(3,413

)

(987

)

(1,050

)

Total cost of sales

 

(22,060

)

(22,470

)

(6,550

)

(6,291

)

Gross profit

 

9,529

 

9,325

 

2,629

 

2,470

 

Selling, general and administrative expenses

 

(4,615

)

(4,491

)

(1,297

)

(1,242

)

Non-order related research and development expenses

 

(1,082

)

(1,037

)

(320

)

(314

)

Other income (expense), net

 

(14

)

329

 

(34

)

(116

)

Earnings before interest and taxes

 

3,818

 

4,126

 

978

 

798

 

Interest and dividend income

 

95

 

121

 

25

 

28

 

Interest and other finance expense

 

(173

)

(127

)

(35

)

(31

)

Income from continuing operations before taxes

 

3,740

 

4,120

 

968

 

795

 

Provision for taxes

 

(1,018

)

(1,001

)

(228

)

(170

)

Income from continuing operations, net of tax

 

2,722

 

3,119

 

740

 

625

 

Income (loss) from discontinued operations, net of tax

 

10

 

17

 

13

 

(9

)

Net income

 

2,732

 

3,136

 

753

 

616

 

Net income attributable to noncontrolling interests

 

(171

)

(235

)

(53

)

(76

)

Net income attributable to ABB

 

2,561

 

2,901

 

700

 

540

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

2,551

 

2,884

 

687

 

549

 

Net income

 

2,561

 

2,901

 

700

 

540

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

1.12

 

1.26

 

0.30

 

0.24

 

Net income

 

1.12

 

1.27

 

0.31

 

0.24

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

1.11

 

1.26

 

0.30

 

0.24

 

Net income

 

1.12

 

1.27

 

0.31

 

0.24

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding (in millions) used to compute:

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to ABB shareholders

 

2,287

 

2,284

 

2,285

 

2,286

 

Diluted earnings per share attributable to ABB shareholders

 

2,291

 

2,288

 

2,289

 

2,291

 

 

See Notes to the Interim Consolidated Financial Information

 

14



 

ABB Ltd Interim Consolidated Balance Sheets (unaudited)

 

($ in millions, except share data)

 

Dec. 31, 2010

 

Dec. 31, 2009

 

 

 

 

 

 

 

Cash and equivalents

 

5,897

 

7,119

 

Marketable securities and short-term investments

 

2,713

 

2,433

 

Receivables, net

 

9,970

 

9,451

 

Inventories, net

 

4,878

 

4,550

 

Prepaid expenses

 

193

 

236

 

Deferred taxes

 

896

 

900

 

Other current assets

 

801

 

540

 

Total current assets

 

25,348

 

25,229

 

 

 

 

 

 

 

Financing receivables, net

 

420

 

452

 

Property, plant and equipment, net

 

4,356

 

4,072

 

Goodwill

 

4,085

 

3,026

 

Other intangible assets, net

 

701

 

443

 

Prepaid pension and other employee benefits

 

173

 

112

 

Investments in equity method companies

 

19

 

49

 

Deferred taxes

 

846

 

1,052

 

Other non-current assets

 

347

 

293

 

Total assets

 

36,295

 

34,728

 

 

 

 

 

 

 

Accounts payable, trade

 

4,555

 

3,853

 

Billings in excess of sales

 

1,730

 

1,623

 

Accounts payable, other

 

1,526

 

1,326

 

Short-term debt and current maturities of long-term debt

 

1,043

 

161

 

Advances from customers

 

1,764

 

1,806

 

Deferred taxes

 

357

 

327

 

Provisions for warranties

 

1,393

 

1,280

 

Provisions and other current liabilities

 

2,726

 

2,603

 

Accrued expenses

 

1,644

 

1,600

 

Total current liabilities

 

16,738

 

14,579

 

 

 

 

 

 

 

Long-term debt

 

1,139

 

2,172

 

Pension and other employee benefits

 

831

 

1,179

 

Deferred taxes

 

411

 

328

 

Other non-current liabilities

 

1,718

 

1,997

 

Total liabilities

 

20,837

 

20,255

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Capital stock and additional paid-in capital (2,308,782,064 and 2,329,324,797 issued shares at December 31, 2010 and 2009, respectively)

 

1,454

 

3,943

 

Retained earnings

 

15,389

 

12,828

 

Accumulated other comprehensive loss

 

(1,517

)

(2,084

)

Treasury stock, at cost (25,317,453 and 39,901,593 shares at December 31, 2010 and 2009, respectively)

 

(441

)

(897

)

Total ABB stockholders’ equity

 

14,885

 

13,790

 

Noncontrolling interests

 

573

 

683

 

Total stockholders’ equity

 

15,458

 

14,473

 

Total liabilities and stockholders’ equity

 

36,295

 

34,728

 

 

See Notes to the Interim Consolidated Financial Information

 

15



 

ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited)

 

 

 

Year ended

 

Three months ended

 

($ in millions)

 

Dec. 31, 2010

 

Dec. 31, 2009

 

Dec. 31, 2010

 

Dec. 31, 2009

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

2,732

 

3,136

 

753

 

616

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

702

 

655

 

195

 

188

 

Pension and other employee benefits

 

(51

)

(28

)

(96

)

(27

)

Deferred taxes

 

151

 

(56

)

51

 

(45

)

Net gain from sale of property, plant and equipment

 

(39

)

(15

)

(22

)

(4

)

Loss (income) from equity accounted companies

 

(3

)

2

 

(1

)

1

 

Other

 

106

 

(6

)

38

 

7

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Trade receivables, net

 

(407

)

256

 

(142

)

84

 

Inventories, net

 

(264

)

1,130

 

198

 

732

 

Trade payables

 

678

 

(718

)

172

 

(15

)

Billings in excess of sales

 

89

 

295

 

105

 

239

 

Provisions, net

 

(69

)

(241

)

62

 

129

 

Advances from customers

 

(25

)

(316

)

79

 

(298

)

Other assets and liabilities, net

 

597

 

(67

)

367

 

176

 

Net cash provided by operating activities

 

4,197

 

4,027

 

1,759

 

1,783

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Changes in financing receivables, net

 

(7

)

(7

)

39

 

(5

)

Purchases of marketable securities (available-for-sale)

 

(3,391

)

(243

)

(846

)

(184

)

Purchases of marketable securities (held-to-maturity)

 

(65

)

(918

)

 

(119

)

Purchases of short-term investments

 

(2,165

)

(3,824

)

(393

)

(1,753

)

Purchases of property, plant and equipment and intangible assets

 

(840

)

(967

)

(407

)

(343

)

Acquisition of businesses (net of cash acquired) and changes in cost and equity investments

 

(1,313

)

(161

)

(22

)

(6

)

Proceeds from sales of marketable securities (available-for-sale)

 

807

 

79

 

241

 

16

 

Proceeds from maturity of marketable securities (available-for-sale)

 

531

 

855

 

138

 

 

Proceeds from maturity of marketable securities (held-to-maturity)

 

290

 

730

 

 

457

 

Proceeds from short-term investments

 

3,276

 

2,253

 

205

 

1,805

 

Proceeds from sales of property, plant and equipment

 

47

 

36

 

16

 

13

 

Proceeds from sales of businesses and equity accounted companies (net of cash disposed)

 

83

 

16

 

21

 

6

 

Other

 

 

(21

)

 

(1

)

Net cash used in investing activities

 

(2,747

)

(2,172

)

(1,008

)

(114

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net changes in debt with maturities of 90 days or less

 

52

 

(59

)

(14

)

(31

)

Increase in debt

 

277

 

586

 

80

 

146

 

Repayment of debt

 

(497

)

(705

)

(170

)

(182

)

Issuance of shares

 

16

 

89

 

10

 

86

 

Transactions in treasury shares

 

(166

)

 

(46

)

 

Dividends paid in the form of nominal value reduction

 

(1,112

)

(1,027

)

 

 

Acquisition of noncontrolling interests

 

(956

)

(48

)

(2

)

(48

)

Dividends paid to noncontrolling shareholders

 

(193

)

(193

)

(5

)

(2

)

Other

 

49

 

8

 

36

 

22

 

Net cash used in financing activities

 

(2,530

)

(1,349

)

(111

)

(9

)

 

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and equivalents

 

(142

)

214

 

(12

)

(43

)

 

 

 

 

 

 

 

 

 

 

Net change in cash and equivalents - continuing operations

 

(1,222

)

720

 

628

 

1,617

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents beginning of period

 

7,119

 

6,399

 

5,269

 

5,502

 

Cash and equivalents end of period

 

5,897

 

7,119

 

5,897

 

7,119

 

 

 

 

 

 

 

 

 

 

 

Supplementary disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

Interest paid

 

94

 

156

 

22

 

34

 

Taxes paid

 

884

 

1,090

 

186

 

261

 

 

See Notes to the Interim Consolidated Financial Information

 

16



 

ABB Ltd Interim Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

 

 

 

 

 

 

 

Accumulated other comprehensive loss

 

 

 

 

 

 

 

 

 

($ in millions)

 

Capital
stock and
additional
paid-in
capital

 

Retained
earnings

 

Foreign
currency
translation
adjustment

 

Unrealized
gain (loss)
on
available-
for-
sale
securities

 

Pension
and other
postretirement
plan
adjustments

 

Unrealized
gain (loss)
of cash
flow hedge
derivatives

 

Total
accumulated
other
comprehensive
loss

 

Treasury
stock

 

Total ABB
stockholders’
equity

 

Noncontrolling
interests

 

Total
stockholders’
equity

 

Balance at January 1, 2009

 

4,841