UNITED STATES
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
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2017
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 ☒ |
Form 40-F ⬜ |
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): ⬜
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): ⬜
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 ⬜ |
No ☒ |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
The information included in this Form 6-K/A is incorporated by reference into ABB Ltd's registration statement on Form F‑3 (File No. 333‑180922) and registration statements on Form S‑8 (File Nos. 333‑190180, 333‑181583, 333‑179472, 333‑171971 and 333‑129271) each of which was previously filed with the Securities and Exchange Commission.
EXPLANATORY NOTE
ABB Ltd. (the “Company”) is submitting this amended report on Form 6-K/A (this “Form 6-K/A”) to amend Item 2 of Form 6-K submitted to the Securities and Exchange Commission on February 8, 2017 (the “Form 6-K”), containing its Q4 2016 Financial Information. This information was incorporated by reference into ABB Ltd's registration statement on Form F-3 (File No. 333‑180922) and registration statements on Form S-8 (File Nos. 333-190180, 333‑181583, 333‑179472, 333‑171971 and 333‑129271) each of which was previously filed with the Securities and Exchange Commission.
Subsequent to the filing of the Form 6-K, the Company discovered a scheme to embezzle and misappropriate funds in its subsidiary in South Korea. The Company determined that approximately $75 million in cash previously reported at December 31, 2016, had been misappropriated and in addition there were unrecorded loans of $16 million and unreported factoring of accounts receivable amounting to $12 million. The Company reported this criminal loss to its third-party insurance company and has confirmed it has a relevant and effective insurance with a policy limit of $30 million and this coverage has been accrued.
As a result of the embezzlement, we are restating in this Form 6-K/A our interim consolidated financial information for the year and three months ended December 31, 2016. Note 1 to the interim consolidated financial information included in this Form 6-K/A reflects the changes to our interim consolidated financial information as a result of our restatement and provides additional information about the restatement.
1 Q4 2016 Financial Information
Financial Information
3 Key Figures
8 Interim Consolidated Financial Information (unaudited)
8 Interim Consolidated Income Statements
9 Interim Condensed Consolidated Statements of Comprehensive Income
10 Interim Consolidated Balance Sheets
11 Interim Consolidated Statements of Cash Flows
12 Interim Consolidated Statements of Changes in Stockholders’ Equity
13 Notes to the Interim Consolidated Financial Information
34 Supplemental Reconciliations and Definitions
2 Q4 2016 Financial Information
Financial Information
Key Figures
|
|
|
|
|
CHANGE |
|
|
($ in millions, unless otherwise indicated) |
Q4 2016 |
Q4 2015 |
US$ |
Comparable(1) |
|
|
|
|
restated |
|
restated |
restated |
|
Orders |
8,277 |
8,262 |
0% |
3% |
|
|
Order backlog (end December) |
22,981 |
24,121 |
-5% |
-1% |
|
|
Revenues |
8,993 |
9,242 |
-3% |
1% |
|
|
Operational EBITA(1) |
1,057 |
1,101 |
-4% |
-2%(2) |
|
|
|
as % of operational revenues(1) |
11.7% |
11.9% |
-0.2 pts |
|
|
Net income |
425 |
204 |
108% |
|
|
|
Basic earnings per share ($) |
0.20 |
0.09 |
115%(3) |
|
|
|
Operational earnings per share(1) ($) |
0.33 |
0.35 |
-5%(3) |
-3%(3) |
|
|
Cash flow from operating activities |
1,428 |
1,994 |
-28% |
|
|
|
|
|
|
CHANGE |
|
|
($ in millions, unless otherwise indicated) |
FY 2016 |
FY 2015 |
US$ |
Comparable(1) |
|
|
|
|
restated |
|
restated |
restated |
|
Orders |
33,379 |
36,429 |
-8% |
-5% |
|
|
Revenues |
33,828 |
35,481 |
-5% |
-1% |
|
|
Operational EBITA(1) |
4,191 |
4,209 |
0% |
2%(2) |
|
|
|
as % of operational revenues(1) |
12.4% |
11.9% |
+0.5 pts |
|
|
Net income |
1,899 |
1,933 |
-2% |
|
|
|
Basic earnings per share ($) |
0.88 |
0.87 |
2%(3) |
|
|
|
Operational earnings per share(1) ($) |
1.29 |
1.26 |
3%(3) |
4%(3) |
|
|
Cash flow from operating activities |
3,843 |
3,818 |
1% |
|
(1) For a reconciliation of non-GAAP measures see “Supplemental Reconciliations and Definitions” on page 34.
(2) Constant currency (not adjusted for portfolio changes).
(3) Earnings per share growth rates are computed using unrounded amounts. Comparable Operational earnings per share growth is in constant currency (2014 foreign exchange rates and not adjusted for changes in the business portfolio).
3 Q4 2016 Financial Information
|
|
Q4 2016 |
|
CHANGE - restated |
|||
|
($ in millions, unless otherwise indicated) |
restated |
Q4 2015 |
US$ |
Local |
Comparable |
|
|
Orders |
ABB Group |
8,277 |
8,262 |
0% |
2% |
3% |
|
|
Electrification Products |
2,157 |
2,340 |
-8% |
-5% |
-5% |
|
|
Discrete Automation and Motion |
2,013 |
1,984 |
1% |
4% |
4% |
|
|
Process Automation |
1,520 |
1,796 |
-15% |
-14% |
-14% |
|
|
Power Grids |
2,879 |
2,628 |
10% |
12% |
15% |
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(292) |
(486) |
||||
|
Third-party base orders |
ABB Group |
6,860 |
7,122 |
-4% |
-1% |
-1% |
|
|
Electrification Products |
2,051 |
2,158 |
-5% |
-2% |
-2% |
|
|
Discrete Automation and Motion |
1,820 |
1,779 |
2% |
5% |
5% |
|
|
Process Automation |
1,285 |
1,309 |
-2% |
0% |
0% |
|
|
Power Grids |
1,692 |
1,864 |
-9% |
-7% |
-7% |
|
|
Corporate and Other |
12 |
12 |
|
|
|
|
Order backlog (end December) |
ABB Group |
22,981 |
24,121 |
-5% |
-2% |
-1% |
|
|
Electrification Products |
2,612 |
2,872 |
-9% |
-5% |
-5% |
|
|
Discrete Automation and Motion |
4,078 |
4,232 |
-4% |
0% |
0% |
|
|
Process Automation |
5,258 |
6,036 |
-13% |
-10% |
-10% |
|
|
Power Grids |
12,437 |
12,502 |
-1% |
3% |
4% |
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(1,404) |
(1,521) |
||||
|
Revenues |
ABB Group |
8,993 |
9,242 |
-3% |
0% |
1% |
|
|
Electrification Products |
2,462 |
2,459 |
0% |
3% |
3% |
|
|
Discrete Automation and Motion |
2,211 |
2,288 |
-3% |
-1% |
-1% |
|
|
Process Automation |
1,737 |
1,926 |
-10% |
-8% |
-8% |
|
|
Power Grids |
3,042 |
3,107 |
-2% |
1% |
4% |
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(459) |
(538) |
||||
|
Operational EBITA |
ABB Group |
1,057 |
1,101 |
-4% |
-2% |
|
|
|
Electrification Products |
382 |
403 |
-5% |
-4% |
|
|
|
Discrete Automation and Motion |
260 |
291 |
-11% |
-8% |
|
|
|
Process Automation |
231 |
235 |
-2% |
0% |
|
|
|
Power Grids |
318 |
293 |
9% |
12% |
|
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(134) |
(121) |
||||
|
Operational EBITA % |
ABB Group |
11.7% |
11.9% |
|
|
|
|
|
Electrification Products |
15.5% |
16.4% |
|
|
|
|
|
Discrete Automation and Motion |
11.7% |
12.7% |
|
|
|
|
|
Process Automation |
13.4% |
12.1% |
|
|
|
|
|
Power Grids |
10.4% |
9.5% |
|
|
|
|
Income from operations |
ABB Group |
678 |
347 |
|
|
|
|
|
Electrification Products |
319 |
267 |
|
|
|
|
|
Discrete Automation and Motion |
89 |
134 |
|
|
|
|
|
Process Automation |
244 |
105 |
|
|
|
|
|
Power Grids |
334 |
145 |
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(308) |
(304) |
||||
|
Income from operations % |
ABB Group |
7.5% |
3.8% |
|
|
|
|
|
Electrification Products |
13.0% |
10.9% |
|
|
|
|
|
Discrete Automation and Motion |
4.0% |
5.9% |
|
|
|
|
|
Process Automation |
14.0% |
5.5% |
|
|
|
|
|
Power Grids |
11.0% |
4.7% |
|
|
|
|
Cash flow from operating activities |
ABB Group |
1,428 |
1,994 |
|
|
|
|
|
Electrification Products |
451 |
590 |
|
|
|
|
|
Discrete Automation and Motion |
308 |
372 |
|
|
|
|
|
Process Automation |
186 |
374 |
|
|
|
|
|
Power Grids |
559 |
835 |
|
|
|
|
|
Corporate and Other |
(76) |
(177) |
|
|
|
4 Q4 2016 Financial Information
|
|
FY 2016 |
|
CHANGE - restated |
|||
|
($ in millions, unless otherwise indicated) |
restated |
FY 2015 |
US$ |
Local |
Comparable |
|
|
Orders |
ABB Group |
33,379 |
36,429 |
-8% |
-5% |
-5% |
|
|
Electrification Products |
9,158 |
9,833 |
-7% |
-4% |
-4% |
|
|
Discrete Automation and Motion |
8,654 |
9,222 |
-6% |
-4% |
-4% |
|
|
Process Automation |
5,866 |
7,347 |
-20% |
-18% |
-18% |
|
|
Power Grids |
11,232 |
12,205 |
-8% |
-5% |
-4% |
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(1,531) |
(2,178) |
|
|
|
|
|
Third-party base orders |
ABB Group |
28,887 |
30,302 |
-5% |
-2% |
-2% |
|
|
Electrification Products |
8,657 |
9,106 |
-5% |
-2% |
-2% |
|
|
Discrete Automation and Motion |
7,777 |
8,046 |
-3% |
-1% |
-1% |
|
|
Process Automation |
5,094 |
5,555 |
-8% |
-6% |
-6% |
|
|
Power Grids |
7,304 |
7,527 |
-3% |
0% |
0% |
|
|
Corporate and Other |
55 |
68 |
|
|
|
|
Order backlog (end December) |
ABB Group |
22,981 |
24,121 |
-5% |
-2% |
-1% |
|
|
Electrification Products |
2,612 |
2,872 |
-9% |
-5% |
-5% |
|
|
Discrete Automation and Motion |
4,078 |
4,232 |
-4% |
0% |
0% |
|
|
Process Automation |
5,258 |
6,036 |
-13% |
-10% |
-10% |
|
|
Power Grids |
12,437 |
12,502 |
-1% |
3% |
4% |
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(1,404) |
(1,521) |
||||
|
Revenues |
ABB Group |
33,828 |
35,481 |
-5% |
-2% |
-1% |
|
|
Electrification Products |
9,292 |
9,547 |
-3% |
1% |
1% |
|
|
Discrete Automation and Motion |
8,714 |
9,127 |
-5% |
-2% |
-2% |
|
|
Process Automation |
6,598 |
7,224 |
-9% |
-6% |
-6% |
|
|
Power Grids |
10,975 |
11,621 |
-6% |
-3% |
1% |
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(1,751) |
(2,038) |
||||
|
Operational EBITA |
ABB Group |
4,191 |
4,209 |
0% |
2% |
|
|
|
Electrification Products |
1,528 |
1,561 |
-2% |
0% |
|
|
|
Discrete Automation and Motion |
1,195 |
1,295 |
-8% |
-6% |
|
|
|
Process Automation |
824 |
863 |
-5% |
-2% |
|
|
|
Power Grids |
1,021 |
877 |
16% |
19% |
|
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(377) |
(387) |
||||
|
Operational EBITA % |
ABB Group |
12.4% |
11.9% |
|
|
|
|
|
Electrification Products |
16.4% |
16.4% |
|
|
|
|
|
Discrete Automation and Motion |
13.7% |
14.2% |
|
|
|
|
|
Process Automation |
12.4% |
11.9% |
|
|
|
|
|
Power Grids |
9.3% |
7.6% |
|
|
|
|
Income from operations |
ABB Group |
2,987 |
3,049 |
|
|
|
|
|
Electrification Products |
1,335 |
1,356 |
|
|
|
|
|
Discrete Automation and Motion |
831 |
991 |
|
|
|
|
|
Process Automation |
696 |
685 |
|
|
|
|
|
Power Grids |
888 |
613 |
|
|
|
|
|
Corporate and Other |
|
|
|
|
|
|
(incl. inter-division eliminations) |
(763) |
(596) |
|
|
|
|
|
Income from operations % |
ABB Group |
8.8% |
8.6% |
|
|
|
|
|
Electrification Products |
14.4% |
14.2% |
|
|
|
|
|
Discrete Automation and Motion |
9.5% |
10.9% |
|
|
|
|
|
Process Automation |
10.5% |
9.5% |
|
|
|
|
|
Power Grids |
8.1% |
5.3% |
|
|
|
|
Cash flow from operating activities |
ABB Group |
3,843 |
3,818 |
|
|
|
|
|
Electrification Products |
1,221 |
1,364 |
|
|
|
|
|
Discrete Automation and Motion |
1,002 |
1,206 |
|
|
|
|
|
Process Automation |
728 |
690 |
|
|
|
|
|
Power Grids |
1,120 |
970 |
|
|
|
|
|
Corporate and Other |
(228) |
(412) |
|
|
|
5 Q4 2016 Financial Information
Operational EBITA |
|
|
|
ABB |
Electrification |
Discrete Automation |
Process |
Power |
|||||
|
($ in millions, unless otherwise indicated) |
restated |
Products |
and Motion |
Automation |
Grids |
|||||
|
|
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
|
Revenues |
8,993 |
9,242 |
2,462 |
2,459 |
2,211 |
2,288 |
1,737 |
1,926 |
3,042 |
3,107 |
|
FX/commodity timing |
|
|
|
|
|
|
|
|
|
|
|
differences in total revenues |
20 |
(4) |
4 |
(4) |
7 |
4 |
(11) |
13 |
21 |
(16) |
|
Operational revenues |
9,013 |
9,238 |
2,466 |
2,455 |
2,218 |
2,292 |
1,726 |
1,939 |
3,063 |
3,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
678 |
347 |
319 |
267 |
89 |
134 |
244 |
105 |
334 |
145 |
|
Acquisition-related amortization |
67 |
73 |
23 |
24 |
29 |
32 |
2 |
3 |
8 |
10 |
|
Restructuring and |
|
|
|
|
|
|
|
|
|
|
|
restructuring-related expenses(1) |
68 |
531 |
25 |
104 |
31 |
81 |
(21) |
106 |
(5) |
122 |
|
Non-operational pension cost |
38 |
8 |
– |
– |
2 |
– |
2 |
2 |
1 |
– |
|
Changes in pre-acquisition estimates |
92 |
12 |
– |
– |
92 |
12 |
– |
– |
– |
– |
|
Gains and losses from sale of businesses, |
|
|
|
|
|
|
|
|
|
|
|
acquisition-related expenses and certain |
|
|
|
|
|
|
|
|
|
|
|
non-operational items |
127 |
76 |
7 |
4 |
14 |
26 |
9 |
(5) |
(8) |
1 |
|
FX/commodity timing |
|
|
|
|
|
|
|
|
|
|
|
differences in income from operations |
(13) |
54 |
8 |
4 |
3 |
6 |
(5) |
24 |
(12) |
15 |
|
Operational EBITA |
1,057 |
1,101 |
382 |
403 |
260 |
291 |
231 |
235 |
318 |
293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational EBITA margin (%) |
11.7% |
11.9% |
15.5% |
16.4% |
11.7% |
12.7% |
13.4% |
12.1% |
10.4% |
9.5% |
|
|
ABB |
Electrification |
Discrete Automation |
Process |
Power |
|||||
|
($ in millions, unless otherwise indicated) |
restated |
Products |
and Motion |
Automation |
Grids |
|||||
|
|
FY 16 |
FY 15 |
FY 16 |
FY 15 |
FY 16 |
FY 15 |
FY 16 |
FY 15 |
FY 16 |
FY 15 |
|
Revenues |
33,828 |
35,481 |
9,292 |
9,547 |
8,714 |
9,127 |
6,598 |
7,224 |
10,975 |
11,621 |
|
FX/commodity timing |
|
|
|
|
|
|
|
|
|
|
|
differences in total revenues |
81 |
(28) |
4 |
(11) |
5 |
4 |
21 |
13 |
51 |
(33) |
|
Operational revenues |
33,909 |
35,453 |
9,296 |
9,536 |
8,719 |
9,131 |
6,619 |
7,237 |
11,026 |
11,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
2,987 |
3,049 |
1,335 |
1,356 |
831 |
991 |
696 |
685 |
888 |
613 |
|
Acquisition-related amortization |
279 |
310 |
95 |
100 |
120 |
128 |
11 |
12 |
35 |
52 |
|
Restructuring and |
|
|
|
|
|
|
|
|
|
|
|
restructuring-related expenses(1) |
543 |
674 |
73 |
124 |
88 |
125 |
79 |
130 |
101 |
160 |
|
Non-operational pension cost |
38 |
19 |
3 |
(3) |
2 |
3 |
2 |
6 |
(2) |
3 |
|
Changes in pre-acquisition estimates |
131 |
21 |
– |
– |
131 |
21 |
– |
– |
– |
– |
|
Gains and losses from sale of businesses, |
|
|
|
|
|
|
|
|
|
|
|
acquisition-related expenses and certain |
|
|
|
|
|
|
|
|
|
|
|
non-operational items |
173 |
120 |
8 |
4 |
18 |
26 |
9 |
14 |
(2) |
39 |
|
FX/commodity timing |
|
|
|
|
|
|
|
|
|
|
|
differences in income from operations |
40 |
16 |
14 |
(20) |
5 |
1 |
27 |
16 |
1 |
10 |
|
Operational EBITA |
4,191 |
4,209 |
1,528 |
1,561 |
1,195 |
1,295 |
824 |
863 |
1,021 |
877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational EBITA margin (%) |
12.4% |
11.9% |
16.4% |
16.4% |
13.7% |
14.2% |
12.4% |
11.9% |
9.3% |
7.6% |
(1) Amounts also include the incremental implementation costs in relation to the White Collar Productivity program.
Depreciation and Amortization |
|
|
|
|
Electrification |
Discrete Automation |
Process |
Power |
|||||
|
($ in millions) |
ABB |
Products |
and Motion |
Automation |
Grids |
|||||
|
|
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
Q4 16 |
Q4 15 |
|
Depreciation |
191 |
192 |
49 |
51 |
38 |
39 |
13 |
15 |
50 |
51 |
|
Amortization |
91 |
96 |
26 |
27 |
33 |
36 |
4 |
5 |
16 |
17 |
|
including total acquisition-related amortization of: |
67 |
73 |
23 |
24 |
29 |
32 |
2 |
3 |
8 |
10 |
|
|
|
Electrification |
Discrete Automation |
Process |
Power |
|||||
|
($ in millions) |
ABB |
Products |
and Motion |
Automation |
Grids |
|||||
|
|
FY 16 |
FY 15 |
FY 16 |
FY 15 |
FY 16 |
FY 15 |
FY 16 |
FY 15 |
FY 16 |
FY 15 |
|
Depreciation |
767 |
764 |
199 |
206 |
156 |
149 |
57 |
60 |
201 |
204 |
|
Amortization |
368 |
396 |
106 |
110 |
136 |
146 |
17 |
19 |
65 |
76 |
|
including total acquisition-related amortization of: |
279 |
310 |
95 |
100 |
120 |
128 |
11 |
12 |
35 |
52 |
6 Q4 2016 Financial Information
Orders received and revenues by region |
|
($ in millions, unless otherwise indicated) |
Orders received |
CHANGE |
Revenues |
CHANGE |
||||||
|
|
|
|
|
|
Com- |
|
|
|
|
Com- |
|
Q4 16 |
Q4 15 |
US$ |
Local |
parable |
Q4 16 |
Q4 15 |
US$ |
Local |
parable |
|
|
Europe |
2,529 |
2,888 |
-12% |
-10% |
-8% |
3,016 |
3,028 |
0% |
3% |
6% |
|
The Americas |
2,487 |
2,491 |
0% |
0% |
0% |
2,469 |
2,627 |
-6% |
-6% |
-6% |
|
Asia, Middle East and Africa |
3,261 |
2,883 |
13% |
17% |
17% |
3,508 |
3,587 |
-2% |
1% |
2% |
|
ABB Group |
8,277 |
8,262 |
0% |
2% |
3% |
8,993 |
9,242 |
-3% |
0% |
1% |
|
($ in millions, unless otherwise indicated) |
Orders received |
CHANGE |
Revenues |
CHANGE |
||||||
|
|
|
|
|
|
Com- |
|
|
|
|
Com- |
|
FY 16 |
FY 15 |
US$ |
Local |
parable |
FY 16 |
FY 15 |
US$ |
Local |
parable |
|
|
Europe |
11,213 |
12,568 |
-11% |
-9% |
-8% |
11,315 |
11,602 |
-2% |
0% |
4% |
|
The Americas |
9,351 |
10,505 |
-11% |
-9% |
-9% |
9,741 |
10,554 |
-8% |
-5% |
-5% |
|
Asia, Middle East and Africa |
12,815 |
13,356 |
-4% |
0% |
0% |
12,772 |
13,325 |
-4% |
-1% |
-1% |
|
ABB Group |
33,379 |
36,429 |
-8% |
-5% |
-5% |
33,828 |
35,481 |
-5% |
-2% |
-1% |
7 Q4 2016 Financial Information
Financial Information
Interim Consolidated Financial Information
|
ABB Ltd Interim Consolidated Income Statements (unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
Three months ended |
||
|
($ in millions, except per share data in $) |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
|
restated |
|
restated |
|
|
Sales of products |
27,816 |
29,477 |
7,339 |
7,599 |
|
Sales of services and software |
6,012 |
6,004 |
1,654 |
1,643 |
|
Total revenues |
33,828 |
35,481 |
8,993 |
9,242 |
|
Cost of sales of products |
(20,431) |
(21,694) |
(5,451) |
(5,820) |
|
Cost of services and software |
(3,650) |
(3,653) |
(1,027) |
(1,027) |
|
Total cost of sales |
(24,081) |
(25,347) |
(6,478) |
(6,847) |
|
Gross profit |
9,747 |
10,134 |
2,515 |
2,395 |
|
Selling, general and administrative expenses |
(5,349) |
(5,574) |
(1,394) |
(1,580) |
|
Non-order related research and development expenses |
(1,300) |
(1,406) |
(349) |
(408) |
|
Other income (expense), net |
(111) |
(105) |
(94) |
(60) |
|
Income from operations |
2,987 |
3,049 |
678 |
347 |
|
Interest and dividend income |
73 |
77 |
19 |
21 |
|
Interest and other finance expense |
(261) |
(286) |
(31) |
(63) |
|
Income from continuing operations before taxes |
2,799 |
2,840 |
666 |
305 |
|
Provision for taxes |
(781) |
(788) |
(194) |
(66) |
|
Income from continuing operations, net of tax |
2,018 |
2,052 |
472 |
239 |
|
Income from discontinued operations, net of tax |
16 |
3 |
2 |
1 |
|
Net income |
2,034 |
2,055 |
474 |
240 |
|
Net income attributable to noncontrolling interests |
(135) |
(122) |
(49) |
(36) |
|
Net income attributable to ABB |
1,899 |
1,933 |
425 |
204 |
|
|
|
|
|
|
|
Amounts attributable to ABB shareholders: |
|
|
|
|
|
Income from continuing operations, net of tax |
1,883 |
1,930 |
423 |
203 |
|
Net income |
1,899 |
1,933 |
425 |
204 |
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders: |
|
|
|
|
|
Income from continuing operations, net of tax |
0.88 |
0.87 |
0.20 |
0.09 |
|
Net income |
0.88 |
0.87 |
0.20 |
0.09 |
|
|
|
|
|
|
|
Diluted earnings per share attributable to ABB shareholders: |
|
|
|
|
|
Income from continuing operations, net of tax |
0.87 |
0.87 |
0.20 |
0.09 |
|
Net income |
0.88 |
0.87 |
0.20 |
0.09 |
|
|
|
|
|
|
|
Weighted-average number of shares outstanding (in millions) used to compute: |
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders |
2,151 |
2,226 |
2,137 |
2,203 |
|
Diluted earnings per share attributable to ABB shareholders |
2,154 |
2,230 |
2,141 |
2,206 |
|
|
|
|
|
|
|
See Notes to the Interim Consolidated Financial Information |
|
|
|
|
8 Q4 2016 Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
ABB Ltd Interim Condensed Consolidated Statements of Comprehensive |
||||
|
Income (unaudited) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
Three months ended |
||
|
($ in millions) |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
|
restated |
|
restated |
|
|
Total comprehensive income (loss), net of tax |
1,688 |
1,416 |
(79) |
254 |
|
Total comprehensive income attributable to noncontrolling interests, net of tax |
(118) |
(100) |
(31) |
(27) |
|
Total comprehensive income (loss) attributable to ABB shareholders, net of tax |
1,570 |
1,316 |
(110) |
227 |
|
|
|
|
|
|
|
See Notes to the Interim Consolidated Financial Information |
|
|
|
|
9 Q4 2016 Financial Information
|
— |
|
|
|
ABB Ltd Interim Consolidated Balance Sheets (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
($ in millions, except share data) |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
|
restated |
|
|
Cash and equivalents |
3,644 |
4,565 |
|
Marketable securities and short-term investments |
1,953 |
1,633 |
|
Receivables, net |
9,696 |
10,061 |
|
Inventories, net |
4,347 |
4,757 |
|
Prepaid expenses |
176 |
225 |
|
Deferred taxes |
888 |
881 |
|
Other current assets |
688 |
638 |
|
Assets held for sale |
548 |
– |
|
Total current assets |
21,940 |
22,760 |
|
|
|
|
|
Property, plant and equipment, net |
4,743 |
5,276 |
|
Goodwill |
9,501 |
9,671 |
|
Other intangible assets, net |
1,996 |
2,337 |
|
Prepaid pension and other employee benefits |
90 |
68 |
|
Investments in equity-accounted companies |
170 |
178 |
|
Deferred taxes |
527 |
423 |
|
Other non-current assets |
532 |
643 |
|
Total assets |
39,499 |
41,356 |
|
|
|
|
|
Accounts payable, trade |
4,446 |
4,342 |
|
Billings in excess of sales |
1,241 |
1,375 |
|
Short-term debt and current maturities of long-term debt |
1,003 |
1,454 |
|
Advances from customers |
1,398 |
1,598 |
|
Deferred taxes |
258 |
249 |
|
Provisions for warranties |
1,142 |
1,089 |
|
Other provisions |
1,765 |
1,920 |
|
Other current liabilities |
3,936 |
3,817 |
|
Liabilities held for sale |
218 |
– |
|
Total current liabilities |
15,407 |
15,844 |
|
|
|
|
|
Long-term debt |
5,800 |
5,985 |
|
Pension and other employee benefits |
1,834 |
1,924 |
|
Deferred taxes |
957 |
965 |
|
Other non-current liabilities |
1,604 |
1,650 |
|
Total liabilities |
25,602 |
26,368 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Capital stock and additional paid-in capital |
|
|
|
(2,214,743,264 and 2,314,743,264 issued shares at December 31, 2016 and 2015, respectively) |
216 |
1,444 |
|
Retained earnings |
19,925 |
20,476 |
|
Accumulated other comprehensive loss |
(5,187) |
(4,858) |
|
Treasury stock, at cost |
|
|
|
(76,036,429 and 123,118,123 shares at December 31, 2016 and 2015, respectively) |
(1,559) |
(2,581) |
|
Total ABB stockholders’ equity |
13,395 |
14,481 |
|
Noncontrolling interests |
502 |
507 |
|
Total stockholders’ equity |
13,897 |
14,988 |
|
Total liabilities and stockholders’ equity |
39,499 |
41,356 |
|
|
|
|
|
See Notes to the Interim Consolidated Financial Information |
|
|
10 Q4 2016 Financial Information
|
— |
|
|
|
|
|
ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited) |
||||
|
|
|
|
|
|
|
|
Year ended |
Three months ended |
||
|
($ in millions) |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
|
restated |
|
restated |
|
|
Operating activities: |
|
|
|
|
|
Net income |
2,034 |
2,055 |
474 |
240 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
1,135 |
1,160 |
282 |
288 |
|
Deferred taxes |
(147) |
(219) |
(39) |
(193) |
|
Net loss (gain) from derivatives and foreign exchange |
10 |
15 |
(48) |
53 |
|
Net loss (gain) from sale of property, plant and equipment |
(38) |
(26) |
(5) |
(5) |
|
Net loss (gain) from sale of businesses |
10 |
20 |
– |
1 |
|
Share-based payment arrangements |
54 |
61 |
17 |
18 |
|
Other |
112 |
94 |
49 |
7 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Trade receivables, net |
10 |
162 |
78 |
363 |
|
Inventories, net |
115 |
105 |
376 |
509 |
|
Trade payables |
340 |
(112) |
187 |
16 |
|
Accrued liabilities |
80 |
(24) |
66 |
(2) |
|
Billings in excess of sales |
(25) |
35 |
(29) |
(55) |
|
Provisions, net |
14 |
330 |
19 |
487 |
|
Advances from customers |
(163) |
106 |
(143) |
112 |
|
Income taxes payable and receivable |
125 |
(32) |
2 |
41 |
|
Other assets and liabilities, net |
177 |
88 |
142 |
114 |
|
Net cash provided by operating activities |
3,843 |
3,818 |
1,428 |
1,994 |
|
|
|
|
|
|
|
Investing activities: |
|