UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2011
Commission File Number 001-16429
ABB Ltd
(Translation of registrants name into English)
P.O. Box 1831, Affolternstrasse 44, CH-8050, Zurich, Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x |
Form 40-F o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indication by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o |
No x |
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
This Form 6-K consists of the following:
1. Press release issued by ABB Ltd dated July 21, 2011.
2. Announcements regarding transactions in ABB Ltds Securities made by the directors or the members of the Executive Committee.
The information provided by Item 1 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).
Press Release |
ABB second-quarter net income rises 43% amid steady top line growth
· Orders up 18%(1) (10% organic(2)); 17% revenue growth (9% organic)
· Strong top line and business execution boost bottom line
· Operational EBITDA(3) up 22% to $1.5 billion
· Solid contribution to results from acquisitions
Zurich, Switzerland, July 21, 2011 ABB reported a 43-percent increase in second-quarter net income to $893 million amid strong industrial growth, higher earnings in the Power Systems division and the contribution from recent acquisitions, especially Baldor Electric.
Revenues rose 17 percent and orders increased 18 percent from the second quarter of last year, with growth in both mature and emerging markets.
Customer investments aimed at increasing operational efficiency translated into strong demand for robots, energy-efficient motors and low-voltage systems in the second quarter, while capacity expansions and the need for service drove higher orders in the oil and gas, pulp and paper, metals and marine sectors.
Increasing requirements for electricity in industry and general economic growth, especially in the emerging markets, drove demand for power distribution solutions. Transmission-related investments, which generally come later in the economic cycle, remained at low levels.
A key measure of profitability operational EBITDA(3) increased 22 percent on the strong revenue growth. The operational EBITDA margin declined on a combination of higher investments in sales and R&D, price erosion in the power business that was not fully offset by cost savings, and a less favorable revenue mix in the automation segments. Cash from operations rose significantly.
This was a strong quarter where we continued to execute well, driving further revenue growth, cash generation and a solid increase in shareholder returns, said Joe Hogan, ABBs CEO. Were pleased with the growth and results in the quarter and for the first half of the year.
Looking ahead, its clear that macroeconomic concerns around public debt and inflation have increased recently. However, based on what we know today, we continue to expect strong demand for productivity and energy efficiency solutions in industry and a recovery in power transmission demand in the second half of the year.
2011 Q2 key figures
|
|
|
|
|
|
Change |
| ||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Orders |
|
9,867 |
|
7,665 |
|
29 |
% |
18 |
% |
Order backlog (end June) |
|
29,983 |
|
24,437 |
|
23 |
% |
9 |
% |
Revenues |
|
9,680 |
|
7,573 |
|
28 |
% |
17 |
% |
EBIT |
|
1,337 |
|
975 |
|
37 |
% |
|
|
as % of revenues |
|
13.8 |
% |
12.9 |
% |
|
|
|
|
Operational EBITDA(3) |
|
1,547 |
|
1,264 |
|
22 |
% |
|
|
as % of operational revenues(3) |
|
16.0 |
% |
16.6 |
% |
|
|
|
|
Net income |
|
893 |
|
623 |
|
43 |
% |
|
|
Basic net income per share ($) |
|
0.39 |
|
0.27 |
|
44 |
% |
|
|
Cash flow from operating activities |
|
891 |
|
649 |
|
|
|
|
|
(1) Management discussion of orders and revenues focuses on local currency changes. US dollar changes are shown in the tables.
(2) Organic changes exclude the impact of acquisitions (Ventyx and Baldor Electric).
(3) Operational EBITDA represents earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges, the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payables, and non-recurring charges related to acquisitions (Ventyx and Baldor Electric)see reconciliation of non-GAAP measures in Appendix 1.
Summary of Q2 2011 results
Orders received and revenues
Demand for ABB products that boost energy efficiency, industrial productivity and power reliability continued to grow in the second quarter, resulting in higher orders received in all divisions compared to the same quarter in 2010.
The Discrete Automation and Motion division recorded the strongest growth, up more than 60 percent in local currencies on strong orders from Baldor Electricacquired in the first quarter of 2011and also reflecting good growth in the robotics and drives businesses. Excluding Baldor Electric, the division recorded a 25-percent increase in orders. Orders were higher in Low Voltage Products, mainly on increased demand for low-voltage systems to improve electrical efficiency in industry. The Process Automation division saw orders up 15 percent as increasing commodity prices continued to drive customer investments in new capacity and services to improve the productivity of existing assets, especially in the oil and gas, pulp and paper and marine sectors.
Orders rose 4 percent in Power Products, with both utility and industrial demand improving. Continuing investments by utilities to expand and upgrade their power grids fuelled an 11-percent order increase in the Power Systems division.
Orders grew most in the Americas, mainly reflecting the acquisition of Baldor Electric, but also the result of strong growth in South America. Orders were also higher in both eastern and western Europe, while Asian growth was led by India (up almost 40 percent). Orders in China grew 4 percent compared to the same quarter in 2010.
On an organic basis (excluding the recent acquisitions of U.S.-based Ventyx and Baldor Electric), orders grew in both mature and emerging economies, up 6 percent and 13 percent, respectively.
Base orders (below $15 million) increased 18 percent (8 percent organic) and were up in all divisions. Base orders in Power Products increased for the third consecutive quarter and were 6 percent higher than the first quarter of 2011. Large orders (above $15 million) increased 19 percent in the quarter and represented 12 percent of total orders, roughly the same as in the year-earlier period.
The order backlog at the end of June reached $30 billion, a local-currency increase of 9 percent (8 percent organic) compared to the year-earlier period and flat versus the end of the first quarter of 2011.
Revenues continued growing and were higher in all divisions. The growth reflects the execution of the very strong order backlog, higher sales of short cycle products and services as well as a contribution of approximately $600 million from acquisitions(4). Excluding acquisitions, revenues rose by 9 percent.
Earnings and net income
EBIT in the second quarter of 2011 amounted to $1.3 billion, a 37-percent increase compared to the same quarter a year earlier. Revenue growth, including the impact from acquisitions, was the main contributor to the improvement.
(4) Acquisitions comprise Ventyx and Baldor Electric.
As part of the companys previously-announced $1-billion cost savings initiative for 2011, savings of approximately $270 million were achieved in the quarter, of which about 50 percent were derived from optimized sourcing. For the first six months of 2011, savings amounted to approximately $480 million. Costs associated with the program in the second quarter amounted to approximately $30 million and were immaterial in the first quarter.
Operational EBITDA in the second quarter of 2011 amounted to $1.5 billion, an increase of 22 percent over the year-earlier period. Acquisitions contributed approximately $115 million to operational EBITDA.
The operational EBITDA margin decline partly reflects an increase of almost $90 million in investment in research and development and selling expenses to tap growth opportunities and secure the companys technology advantage. The operational EBITDA margin in Power Products was also lower compared to the very high level in the second quarter of 2010. In addition, the operational EBITDA margin in Low Voltage Products decreased as a result of rapid increases in silver prices that could not immediately be compensated by higher prices initiated during the quarter along with a higher proportion of systems revenues in the total revenue mix.
Net income for the quarter grew 43 percent to almost $900 million and resulted in basic earnings per share of $0.39 compared to $0.27 in the year-earlier period.
Balance sheet and cash flow
Net cash at the end of the second quarter was $1.2 billion, down from $2.2 billion at the end of the previous quarter. The decline primarily reflects the dividend payment in May of approximately $1.6 billion.
Cash from operating activities increased significantly compared to the same quarter of 2010, mainly the result of higher net earnings as well as higher customer advances that offset higher inventories needed to support growth.
ABB issued two U.S.-dollar denominated bonds during the second quarter, one of $600 million with a 2.50-percent coupon maturing in 2016 and the second of $650 million with a 4.00 percent coupon maturing in 2021.
The credit rating agency Moodys in June lifted the rating on ABBs long-term corporate debt to A2 from A3 with a stable outlook.
Acquisitions
During the second quarter, ABB acquired Netherlands-based Epyon B.V., a supplier of direct current fast-charging stations for electrical vehicles. ABB also announced an agreement to acquire Brisbane, Australia-based software company Mincom to expand its presence in enterprise asset management software and services. Financial terms of the deal were not disclosed. The Mincom transaction, subject to customary approvals, has not yet closed and had no impact on ABBs second-quarter results.
Earlier this month, ABB announced the acquisition of Sweden-based pulp and paper systems and equipment supplier Lorentzen & Wettre, and Switzerland-based specialty transformer manufacturer Trasfor Group. Both transactions are expected to close in the second half of 2011.
Outlook
While macroeconomic concerns have increased recently, particularly around public debt in the U.S. and Europe and inflation in China, the long-term global outlook in ABBs major end markets remains favorable. High commodity prices are driving increased customer capital expenditures, while simultaneously supporting spending on efficiency and productivity improvements, including service. Utility spending on power transmission to integrate renewable energy into existing grids and to interconnect national and regional power grids continues to gain momentum. The potential shift away from nuclear power and high oil prices are expected to further increase the need for energy-efficient power and automation technologies.
Emerging markets will remain the principal drivers of growth in the medium term but demand in the mature economies across all of ABBs portfolio is also expected to continue growing over the coming quarters.
While overcapacity remains in some later-cycle infrastructure-related businesses, prices have stabilized in many sectors and ABB has initiated price increases in selected businesses in 2011, partly to offset increasing raw material costs.
Therefore, over the rest of 2011, management will continue to focus on adjusting costs while seeking profitable growth opportunities, both organic and inorganic, based on its leading technology, broad global presence, competitive cost base and strong balance sheet.
Divisional performance Q2 2011
Power Products
|
|
|
|
|
|
Change |
| ||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Orders |
|
2,810 |
|
2,480 |
|
13 |
% |
4 |
% |
Order backlog (end June) |
|
8,955 |
|
7,796 |
|
15 |
% |
3 |
% |
Revenues |
|
2,783 |
|
2,528 |
|
10 |
% |
1 |
% |
EBIT |
|
417 |
|
421 |
|
-1 |
% |
|
|
as % of revenues |
|
15.0 |
% |
16.7 |
% |
|
|
|
|
Operational EBITDA(1) |
|
454 |
|
515 |
|
|
|
|
|
as % of operational revenues |
|
16.5 |
% |
20.3 |
% |
|
|
|
|
Cash flow from operating activities |
|
158 |
|
384 |
|
|
|
|
|
(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payablessee reconciliation of non-GAAP measures in Appendix 1
The order growth in the quarter was driven primarily by demand from utilities and industry for power distribution solutions. Orders for equipment used to integrate renewable power into the grid and service orders also increased. Customer investments in the power transmission sector have yet to pick up. Both base and large orders increased in the quarter.
Regionally, orders were higher in the Americas, mainly as a result of grid refurbishment and power distribution investments in the U.S. and infrastructure expansion in Brazil driven by sustained economic growth. Continuing grid expansions and a large order in Saudi Arabia drove an increase in the Middle East and Africa. Orders grew in Asia and decreased in Europe, with base orders steady in the region.
Revenues were stable in the quarter as growth in the power distribution and service businesses compensated for lower levels in the later-cycle power transmission equipment business.
The lower operational EBITDA versus the very high levels of the second quarter a year earlier was due to price pressure from transmission-related orders in the backlog that was only partially offset by cost savings.
Power Systems
|
|
|
|
|
|
Change |
| ||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Orders |
|
1,654 |
|
1,354 |
|
22 |
% |
11 |
% |
Order backlog (end June) |
|
11,310 |
|
9,128 |
|
24 |
% |
9 |
% |
Revenues |
|
2,025 |
|
1,635 |
|
24 |
% |
12 |
% |
EBIT |
|
194 |
|
17 |
|
n.a. |
|
|
|
as % of revenues |
|
9.6 |
% |
1.0 |
% |
|
|
|
|
Operational EBITDA(1) |
|
189 |
|
59 |
|
|
|
|
|
as % of operational revenues |
|
9.4 |
% |
3.6 |
% |
|
|
|
|
Cash flow from operating activities |
|
112 |
|
-65 |
|
|
|
|
|
(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges, the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payables and non-recurring charges related to acquisitions (Ventyx)see reconciliation of non-GAAP measures in Appendix 1
Order growth in the quarter was driven by the need for power infrastructure to support growth in sectors such as mining and oil and gas as well as related investments in power generation, transmission links, substations and distribution solutions. Base orders grew at a double-digit pace and were higher in all businesses. Base order growth also partly reflects increased service orders.
Revenues improved on the execution of the strong order backlog, especially in the power generation, HVDC (high-voltage direct current) and offshore wind sectors. The increase in base orders taken in recent quarters, which are executed faster than longer-cycle large orders, also positively affected revenues. The order and tender backlogs remained at a high level.
Operational EBITDA and operational EBITDA margin improved significantly compared to the same quarter a year earlier on a combination of higher revenues as well as a return to profitability in the cables business.
Discrete Automation and Motion
|
|
|
|
|
|
Change |
| ||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Orders |
|
2,615 |
|
1,476 |
|
77 |
% |
63 |
% |
Order backlog (end June) |
|
4,595 |
|
3,223 |
|
43 |
% |
25 |
% |
Revenues |
|
2,248 |
|
1,287 |
|
75 |
% |
61 |
% |
EBIT |
|
349 |
|
200 |
|
75 |
% |
|
|
as % of revenues |
|
15.5 |
% |
15.5 |
% |
|
|
|
|
Operational EBITDA(1) |
|
419 |
|
243 |
|
|
|
|
|
as % of operational revenues |
|
18.7 |
% |
18.9 |
% |
|
|
|
|
Cash flow from operating activities |
|
303 |
|
154 |
|
|
|
|
|
(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges, the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payables and non-recurring charges related to acquisitions (Baldor Electric)see reconciliation of non-GAAP measures in Appendix 1
Orders continued to grow strongly in the second quarter, reflecting both increased demand for energy-efficient automation solutions in all regions of the world as well as the contribution from U.S.-based industrial motor manufacturer Baldor Electric, acquired by ABB in the first quarter of 2011. Orders increased across all businesses, led by robotics and motors and generators. Excluding the impact of the Baldor Electric acquisition, orders increased by 25 percent in local currencies compared to the same quarter in 2010.
Regionally, orders grew strongest in the Americasmore than triplingdue mainly to the Baldor Electric acquisition. Excluding Baldor Electric, orders in the Americas grew 46 percent. Orders were also strongly higher in Europe and Asia, led mainly by demand growth in emerging markets.
Revenues increased at a similar pace to orders on solid execution of the strong order backlog.
The operational EBITDA rose on the increase in revenues while the operational EBITDA margin was roughly unchanged compared to the same quarter in 2010.
Low Voltage Products
|
|
|
|
|
|
Change |
| ||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Orders |
|
1,417 |
|
1,219 |
|
16 |
% |
6 |
% |
Order backlog (end June) |
|
1,141 |
|
879 |
|
30 |
% |
18 |
% |
Revenues |
|
1,397 |
|
1,102 |
|
27 |
% |
16 |
% |
EBIT |
|
234 |
|
205 |
|
14 |
% |
|
|
as % of revenues |
|
16.8 |
% |
18.6 |
% |
|
|
|
|
Operational EBITDA(1) |
|
268 |
|
236 |
|
|
|
|
|
as % of operational revenues |
|
19.2 |
% |
21.4 |
% |
|
|
|
|
Cash flow from operating activities |
|
67 |
|
121 |
|
|
|
|
|
(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payablessee reconciliation of non-GAAP measures in Appendix 1
Order growth in the quarter was driven primarily by increased demand for low-voltage systems. Orders in most other businesses also increased, although at a slower pace than in the past several quarters, reflecting more challenging comparisons with the strong quarters of 2010. Orders for control products declined as a result of weaker demand from the renewable energy sector.
Revenues increased in all businesses in the second quarter. Revenues grew faster than orders, reflecting the combination of product sales in the current quarter plus execution of the growing backlog of system orders won in previous quarters.
Operational EBITDA increased on higher revenues. Operational EBITDA margin declined, however, reflecting the increased share of total revenues from the lower-margin systems business and the rapid increase in silver costs that could not immediately be compensated by higher prices.
Process Automation
|
|
|
|
|
|
Change |
| ||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Orders |
|
2,340 |
|
1,825 |
|
28 |
% |
15 |
% |
Order backlog (end June) |
|
6,829 |
|
5,585 |
|
22 |
% |
7 |
% |
Revenues |
|
2,095 |
|
1,737 |
|
21 |
% |
9 |
% |
EBIT |
|
223 |
|
189 |
|
18 |
% |
|
|
as % of revenues |
|
10.6 |
% |
10.9 |
% |
|
|
|
|
Operational EBITDA(1) |
|
249 |
|
228 |
|
|
|
|
|
as % of operational revenues |
|
11.8 |
% |
13.0 |
% |
|
|
|
|
Cash flow from operating activities |
|
222 |
|
143 |
|
|
|
|
|
(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payablessee reconciliation of non-GAAP measures in Appendix 1
Orders increased in the quarter on continued demand growth mainly in the marine and oil and gas sectors. Orders were also higher in pulp and paper, metals and turbochargers. Orders were
lower in the minerals sector compared to the high levels of the year-earlier period. Lifecycle service orders rose more than 20 percent in the quarter.
Regionally, order growth was highest in Asiaup more than 50 percentas a result of strong marine orders in South Korea, Singapore and Japan. Orders were almost 40 percent higher in the Americas, driven by pulp and paper and minerals orders in South America and higher service orders in the U.S. Orders declined in the Middle East and Africa as large orders valued at more than $250 million in the second quarter of 2010 were not repeated.
The revenue increase reflects execution of the stronger order backlog as well as the recent growth in service orders. Operational EBITDA increased on higher revenues. The operational EBITDA margin declined reflecting revenues from some lower-margin system orders executed from the backlog.
More information
The 2011 Q2 results press release is available from July 21, 2011, on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations, where a presentation for investors will also be published.
A video from Chief Executive Officer Joe Hogan on ABBs second-quarter 2011 results will be available at 07:00 am today at www.youtube.com/abb.
ABB will host a media conference call starting at 10:00 a.m. Central European Time (CET). U.K. callers should dial +44 203 059 58 62. From Sweden, +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 20 7108 6233 (U.K.), +41 91 612 4330 (rest of Europe) or +1 866 416 2558 (U.S./Canada). The code is 12925, followed by the # key. The recorded session will also be available as a podcast one hour after the end of the conference call and can be downloaded from www.abb.com/news.
A conference call for analysts and investors is scheduled to begin today at 4:00 p.m. CET (3:00 p.m. in the UK, 10:00 a.m. EDT). Callers should dial +1 866 291 4166 from the U.S./Canada (toll-free), +44 203 059 5862 from the U.K., or +41 91 610 56 00 from the rest of the world. Callers are requested to phone in 15 minutes before the start of the call. The recorded session will be available as a podcast one hour after the end of the conference call and can be downloaded from our website. You will find the link to access the podcast at www.abb.com.
Investor calendar 2011 |
|
|
Q3 2011 results |
|
Oct. 27, 2011 |
ABB Capital Markets Day 2011 |
|
Nov. 4, 2011 |
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 130,000 people.
Zurich, July 21, 2011
Joe Hogan, CEO
Important notice about forward-looking information
This press release includes forward-looking information and statements as well as other statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates, targets, plans or similar expressions. However, there are many risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others, business risks associated with the volatile global economic environment and political conditions, costs associated with compliance activities, raw materials availability and 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 Ltds filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.
For more information please contact:
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 |
|
Fax: +41 43 317 7958 |
|
|
media.relations@ch.abb.com |
|
|
ABB Q2 and half-year 2011 key figures
|
|
|
|
|
|
Change |
|
|
|
|
|
Change |
| ||||||
$ millions unless otherwise indicated |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
H1 11 |
|
H1 10 |
|
US$ |
|
Local |
| ||
Orders |
|
Group |
|
9,867 |
|
7,665 |
|
29 |
% |
18 |
% |
20,224 |
|
15,732 |
|
29 |
% |
21 |
% |
|
|
Power Products |
|
2,810 |
|
2,480 |
|
13 |
% |
4 |
% |
5,670 |
|
4,881 |
|
16 |
% |
9 |
% |
|
|
Power Systems |
|
1,654 |
|
1,354 |
|
22 |
% |
11 |
% |
3,591 |
|
3,112 |
|
15 |
% |
8 |
% |
|
|
Discrete Automation & Motion |
|
2,615 |
|
1,476 |
|
77 |
% |
63 |
% |
4,959 |
|
2,884 |
|
72 |
% |
63 |
% |
|
|
Low Voltage Products |
|
1,417 |
|
1,219 |
|
16 |
% |
6 |
% |
2,826 |
|
2,325 |
|
22 |
% |
15 |
% |
|
|
Process Automation |
|
2,340 |
|
1,825 |
|
28 |
% |
15 |
% |
4,946 |
|
3,940 |
|
26 |
% |
18 |
% |
|
|
Corporate and other (inter-division eliminations) |
|
-969 |
|
-689 |
|
|
|
|
|
-1,768 |
|
-1,410 |
|
|
|
|
|
Revenues |
|
Group |
|
9,680 |
|
7,573 |
|
28 |
% |
17 |
% |
18,082 |
|
14,507 |
|
25 |
% |
17 |
% |
|
|
Power Products |
|
2,783 |
|
2,528 |
|
10 |
% |
1 |
% |
5,110 |
|
4,847 |
|
5 |
% |
-1 |
% |
|
|
Power Systems |
|
2,025 |
|
1,635 |
|
24 |
% |
12 |
% |
3,858 |
|
3,019 |
|
28 |
% |
19 |
% |
|
|
Discrete Automation & Motion |
|
2,248 |
|
1,287 |
|
75 |
% |
61 |
% |
4,128 |
|
2,500 |
|
65 |
% |
57 |
% |
|
|
Low Voltage Products |
|
1,397 |
|
1,102 |
|
27 |
% |
16 |
% |
2,592 |
|
2,113 |
|
23 |
% |
16 |
% |
|
|
Process Automation |
|
2,095 |
|
1,737 |
|
21 |
% |
9 |
% |
3,995 |
|
3,472 |
|
15 |
% |
7 |
% |
|
|
Corporate and other (inter-division eliminations) |
|
-868 |
|
-716 |
|
|
|
|
|
-1,601 |
|
-1,444 |
|
|
|
|
|
EBIT |
|
Group |
|
1,337 |
|
975 |
|
37 |
% |
|
|
2,350 |
|
1,684 |
|
40 |
% |
|
|
|
|
Power Products |
|
417 |
|
421 |
|
-1 |
% |
|
|
767 |
|
776 |
|
-1 |
% |
|
|
|
|
Power Systems |
|
194 |
|
17 |
|
n.a. |
|
|
|
299 |
|
10 |
|
n.a. |
|
|
|
|
|
Discrete Automation & Motion |
|
349 |
|
200 |
|
75 |
% |
|
|
574 |
|
361 |
|
59 |
% |
|
|
|
|
Low Voltage Products |
|
234 |
|
205 |
|
14 |
% |
|
|
469 |
|
347 |
|
35 |
% |
|
|
|
|
Process Automation |
|
223 |
|
189 |
|
18 |
% |
|
|
474 |
|
347 |
|
37 |
% |
|
|
|
|
Corporate and other (inter-division eliminations) |
|
-80 |
|
-57 |
|
|
|
|
|
-233 |
|
-157 |
|
|
|
|
|
EBIT % |
|
Group |
|
13.8 |
% |
12.9 |
% |
|
|
|
|
13.0 |
% |
11.6 |
% |
|
|
|
|
|
|
Power Products |
|
15.0 |
% |
16.7 |
% |
|
|
|
|
15.0 |
% |
16.0 |
% |
|
|
|
|
|
|
Power Systems |
|
9.6 |
% |
1.0 |
% |
|
|
|
|
7.8 |
% |
0.3 |
% |
|
|
|
|
|
|
Discrete Automation & Motion |
|
15.5 |
% |
15.5 |
% |
|
|
|
|
13.9 |
% |
14.4 |
% |
|
|
|
|
|
|
Low Voltage Products |
|
16.8 |
% |
18.6 |
% |
|
|
|
|
18.1 |
% |
16.4 |
% |
|
|
|
|
|
|
Process Automation |
|
10.6 |
% |
10.9 |
% |
|
|
|
|
11.9 |
% |
10.0 |
% |
|
|
|
|
Operational EBITDA* |
|
Group |
|
1,547 |
|
1,264 |
|
22 |
% |
|
|
2,866 |
|
2,226 |
|
29 |
% |
|
|
|
|
Power Products |
|
454 |
|
515 |
|
-12 |
% |
|
|
858 |
|
923 |
|
-7 |
% |
|
|
|
|
Power Systems |
|
189 |
|
59 |
|
220 |
% |
|
|
321 |
|
121 |
|
165 |
% |
|
|
|
|
Discrete Automation & Motion |
|
419 |
|
243 |
|
72 |
% |
|
|
797 |
|
439 |
|
82 |
% |
|
|
|
|
Low Voltage Products |
|
268 |
|
236 |
|
14 |
% |
|
|
530 |
|
406 |
|
31 |
% |
|
|
|
|
Process Automation |
|
249 |
|
228 |
|
9 |
% |
|
|
495 |
|
408 |
|
21 |
% |
|
|
Operational EBITDA % |
|
Group |
|
16.0 |
% |
16.6 |
% |
|
|
|
|
15.9 |
% |
15.3 |
% |
|
|
|
|
|
|
Power Products |
|
16.5 |
% |
20.3 |
% |
|
|
|
|
16.8 |
% |
19.0 |
% |
|
|
|
|
|
|
Power Systems |
|
9.4 |
% |
3.6 |
% |
|
|
|
|
8.4 |
% |
4.0 |
% |
|
|
|
|
|
|
Discrete Automation & Motion |
|
18.7 |
% |
18.9 |
% |
|
|
|
|
19.3 |
% |
17.5 |
% |
|
|
|
|
|
|
Low Voltage Products |
|
19.2 |
% |
21.4 |
% |
|
|
|
|
20.5 |
% |
19.2 |
% |
|
|
|
|
|
|
Process Automation |
|
11.8 |
% |
13.0 |
% |
|
|
|
|
12.4 |
% |
11.8 |
% |
|
|
|
|
* Operational EBITDA represents earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges, the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payables, and non-recurring charges related to acquisitions (Ventyx and Baldor Electric)see reconciliation of non-GAAP measures in Appendix 1.
Q2 2011 orders received and revenues by region
|
|
Orders received |
|
Change |
|
Revenues |
|
Change |
| ||||||||
$ millions |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Q2 11 |
|
Q2 10 |
|
US$ |
|
Local |
|
Europe |
|
3490 |
|
2866 |
|
22 |
% |
6 |
% |
3779 |
|
2872 |
|
32 |
% |
15 |
% |
Americas |
|
2564 |
|
1462 |
|
75 |
% |
68 |
% |
2228 |
|
1481 |
|
50 |
% |
44 |
% |
Asia |
|
2902 |
|
2165 |
|
34 |
% |
24 |
% |
2579 |
|
2175 |
|
19 |
% |
10 |
% |
Middle East and Africa |
|
911 |
|
1172 |
|
-22 |
% |
-27 |
% |
1094 |
|
1045 |
|
5 |
% |
-2 |
% |
Group total |
|
9867 |
|
7665 |
|
29 |
% |
18 |
% |
9680 |
|
7573 |
|
28 |
% |
17 |
% |
Half-year 2011 orders received and revenues by region
|
|
Orders received |
|
Change |
|
Revenues |
|
Change |
| ||||||||
$ millions |
|
H1 11 |
|
H1 10 |
|
US$ |
|
Local |
|
H1 11 |
|
H1 10 |
|
US$ |
|
Local |
|
Europe |
|
7580 |
|
6299 |
|
20 |
% |
12 |
% |
7070 |
|
5647 |
|
25 |
% |
15 |
% |
Americas |
|
4728 |
|
2959 |
|
60 |
% |
54 |
% |
4236 |
|
2795 |
|
52 |
% |
46 |
% |
Asia |
|
5999 |
|
4266 |
|
41 |
% |
32 |
% |
4692 |
|
4085 |
|
15 |
% |
8 |
% |
Middle East and Africa |
|
1917 |
|
2208 |
|
-13 |
% |
-17 |
% |
2084 |
|
1980 |
|
5 |
% |
1 |
% |
Group total |
|
20224 |
|
15732 |
|
29 |
% |
21 |
% |
18082 |
|
14507 |
|
25 |
% |
17 |
% |
Operational EBIT and operational EBITDA by division Q2 2011 vs Q2 2010
|
|
ABB |
|
Power |
|
Power |
|
Discrete |
|
Low Voltage |
|
Process |
| ||||||||||||
|
|
Q2 11 |
|
Q2 10 |
|
Q2 11 |
|
Q2 10 |
|
Q2 11 |
|
Q2 10 |
|
Q2 11 |
|
Q2 10 |
|
Q2 11 |
|
Q2 10 |
|
Q2 11 |
|
Q2 10 |
|
Revenues (as per Financial Statements) |
|
9680 |
|
7573 |
|
2783 |
|
2528 |
|
2025 |
|
1635 |
|
2248 |
|
1287 |
|
1397 |
|
1102 |
|
2095 |
|
1737 |
|
Derivative impact |
|
(37 |
) |
26 |
|
(28 |
) |
12 |
|
(14 |
) |
1 |
|
(8 |
) |
|
|
(1 |
) |
2 |
|
14 |
|
11 |
|
Operational revenues |
|
9643 |
|
7599 |
|
2755 |
|
2540 |
|
2011 |
|
1636 |
|
2240 |
|
1287 |
|
1396 |
|
1104 |
|
2109 |
|
1748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (as per Financial Statements) |
|
1337 |
|
975 |
|
417 |
|
421 |
|
194 |
|
17 |
|
349 |
|
200 |
|
234 |
|
205 |
|
223 |
|
189 |
|
Derivative impact |
|
(58 |
) |
57 |
|
(14 |
) |
34 |
|
(42 |
) |
8 |
|
(4 |
) |
6 |
|
|
|
3 |
|
3 |
|
9 |
|
Restructuring-related costs |
|
27 |
|
70 |
|
1 |
|
18 |
|
10 |
|
18 |
|
12 |
|
19 |
|
3 |
|
2 |
|
2 |
|
12 |
|
Charges (non-recurring) related to significant acquisitions |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
including non-recurring amortization |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
Operational EBIT |
|
1307 |
|
1102 |
|
404 |
|
473 |
|
162 |
|
43 |
|
358 |
|
225 |
|
237 |
|
210 |
|
228 |
|
210 |
|
Operational EBIT margin |
|
13.6 |
% |
14.5 |
% |
14.7 |
% |
18.6 |
% |
8.1 |
% |
2.6 |
% |
16.0 |
% |
17.5 |
% |
17.0 |
% |
19.0 |
% |
10.8 |
% |
12.0 |
% |
Depreciation |
|
167 |
|
129 |
|
43 |
|
36 |
|
14 |
|
10 |
|
31 |
|
16 |
|
29 |
|
24 |
|
15 |
|
13 |
|
Amortization |
|
75 |
|
33 |
|
7 |
|
6 |
|
13 |
|
6 |
|
32 |
|
2 |
|
2 |
|
2 |
|
6 |
|
5 |
|
Amortization (non-recurring) related to significant acquisitions |
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
Operational EBITDA |
|
1547 |
|
1264 |
|
454 |
|
515 |
|
189 |
|
59 |
|
419 |
|
243 |
|
268 |
|
236 |
|
249 |
|
228 |
|
Operational EBITDA margin |
|
16.0 |
% |
16.6 |
% |
16.5 |
% |
20.3 |
% |
9.4 |
% |
3.6 |
% |
18.7 |
% |
18.9 |
% |
19.2 |
% |
21.4 |
% |
11.8 |
% |
13.0 |
% |
Appendix I
Reconciliation of non-GAAP measures
($ millions, unaudited)
|
|
Three months ended June 30, |
| ||
|
|
2011 |
|
2010 |
|
EBIT Margin (= EBIT as % of revenues) |
|
|
|
|
|
Earnings before interest and taxes (EBIT) |
|
1337 |
|
975 |
|
Revenues |
|
9680 |
|
7'573 |
|
EBIT Margin |
|
13.8 |
% |
12.9 |
% |
|
|
|
|
|
|
EBIT as per financial statements |
|
1337 |
|
975 |
|
reversal of: |
|
|
|
|
|
Unrealized gains and losses on derivatives (FX, commodities, embedded derivatives) |
|
(32 |
) |
91 |
|
Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized |
|
7 |
|
12 |
|
Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) |
|
(33 |
) |
(46 |
) |
Restructuring and restructuring-related expenses |
|
27 |
|
70 |
|
Charges related to significant acquisitions (1) |
|
1 |
|
|
|
Operational EBIT |
|
1307 |
|
1102 |
|
reversal of: |
|
|
|
|
|
Depreciation |
|
167 |
|
129 |
|
Amortization |
|
75 |
|
33 |
|
Backlog amortization related to significant acquisitions |
|
(2 |
) |
|
|
Operational EBITDA |
|
1547 |
|
1264 |
|
|
|
|
|
|
|
Revenues as per financial statements |
|
9680 |
|
7573 |
|
reversal of: |
|
|
|
|
|
Unrealized gains and losses on derivatives |
|
1 |
|
74 |
|
Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized |
|
(6 |
) |
1 |
|
Unrealized foreign exchange movements on receivables (and related assets) |
|
(32 |
) |
(49 |
) |
Operational Revenues |
|
9643 |
|
7599 |
|
|
|
|
|
|
|
Operational EBITDA Margin (= Operational EBITDA as % of Operational Revenues) |
|
16.0 |
% |
16.6 |
% |
(1) includes $2 million backlog amortization related to acquisitions in the 3 months ended June 30, 2011
|
|
June 30, |
|
Dec. 31, |
|
|
|
2011 |
|
2010 |
|
Net Cash (= Cash and equivalents plus marketable securities and short-term investments, less total debt) |
|
|
|
|
|
Cash and equivalents |
|
4552 |
|
5897 |
|
Marketable securities and short-term investments |
|
359 |
|
2713 |
|
Cash and marketable securities |
|
4911 |
|
8610 |
|
Short-term debt and current maturities of long-term debt |
|
1191 |
|
1043 |
|
Long-term debt |
|
2471 |
|
1139 |
|
Total debt |
|
3662 |
|
2182 |
|
Net Cash |
|
1249 |
|
6428 |
|
|
|
June 30, |
|
Dec. 31, |
|
|
|
2011 |
|
2010 |
|
Net Working Capital |
|
|
|
|
|
Receivables, net |
|
10984 |
|
9970 |
|
Inventories, net |
|
6628 |
|
4878 |
|
Prepaid expenses |
|
256 |
|
193 |
|
Accounts payable, trade |
|
(5187 |
) |
(4555 |
) |
Billings in excess of sales |
|
(1797 |
) |
(1730 |
) |
Employee and other payables |
|
(1444 |
) |
(1526 |
) |
Advances from customers |
|
(1935 |
) |
(1764 |
) |
Accrued expenses |
|
(1692 |
) |
(1644 |
) |
Net Working Capital |
|
5813 |
|
3822 |
|
ABB Ltd Interim Consolidated Income Statements (unaudited)
|
|
Six months ended |
|
Three months ended |
| ||||
($ in millions, except per share data in $) |
|
Jun. 30, 2011 |
|
Jun. 30, 2010 |
|
Jun. 30, 2011 |
|
Jun. 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
Sales of products |
|
15,207 |
|
12,062 |
|
8,154 |
|
6,309 |
|
Sales of services |
|
2,875 |
|
2,445 |
|
1,526 |
|
1,264 |
|
Total revenues |
|
18,082 |
|
14,507 |
|
9,680 |
|
7,573 |
|
Cost of products |
|
(10,673 |
) |
(8,486 |
) |
(5,700 |
) |
(4,428 |
) |
Cost of services |
|
(1,815 |
) |
(1,625 |
) |
(959 |
) |
(835 |
) |
Total cost of sales |
|
(12,488 |
) |
(10,111 |
) |
(6,659 |
) |
(5,263 |
) |
Gross profit |
|
5,594 |
|
4,396 |
|
3,021 |
|
2,310 |
|
Selling, general and administrative expenses |
|
(2,619 |
) |
(2,212 |
) |
(1,356 |
) |
(1,081 |
) |
Non-order related research and development expenses |
|
(640 |
) |
(502 |
) |
(334 |
) |
(256 |
) |
Other income (expense), net |
|
15 |
|
2 |
|
6 |
|
2 |
|
Earnings before interest and taxes |
|
2,350 |
|
1,684 |
|
1,337 |
|
975 |
|
Interest and dividend income |
|
43 |
|
50 |
|
25 |
|
26 |
|
Interest and other finance expense |
|
(92 |
) |
(87 |
) |
(41 |
) |
(45 |
) |
Income from continuing operations before taxes |
|
2,301 |
|
1,647 |
|
1,321 |
|
956 |
|
Provision for taxes |
|
(679 |
) |
(486 |
) |
(395 |
) |
(285 |
) |
Income from continuing operations, net of tax |
|
1,622 |
|
1,161 |
|
926 |
|
671 |
|
Loss from discontinued operations, net of tax |
|
(1 |
) |
(1 |
) |
(1 |
) |
(2 |
) |
Net income |
|
1,621 |
|
1,160 |
|
925 |
|
669 |
|
Net income attributable to noncontrolling interests |
|
(73 |
) |
(73 |
) |
(32 |
) |
(46 |
) |
Net income attributable to ABB |
|
1,548 |
|
1,087 |
|
893 |
|
623 |
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
1,549 |
|
1,088 |
|
894 |
|
625 |
|
Net income |
|
1,548 |
|
1,087 |
|
893 |
|
623 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
0.68 |
|
0.48 |
|
0.39 |
|
0.27 |
|
Net income |
|
0.68 |
|
0.47 |
|
0.39 |
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to ABB shareholders: |
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax |
|
0.68 |
|
0.47 |
|
0.39 |
|
0.27 |
|
Net income |
|
0.68 |
|
0.47 |
|
0.39 |
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding (in millions) used to compute: |
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to ABB shareholders |
|
2,286 |
|
2,289 |
|
2,288 |
|
2,288 |
|
Diluted earnings per share attributable to ABB shareholders |
|
2,290 |
|
2,294 |
|
2,292 |
|
2,293 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Balance Sheets (unaudited)
($ in millions, except share data) |
|
Jun. 30, 2011 |
|
Dec. 31, 2010 |
|
|
|
|
|
|
|
Cash and equivalents |
|
4,552 |
|
5,897 |
|
Marketable securities and short-term investments |
|
359 |
|
2,713 |
|
Receivables, net |
|
10,984 |
|
9,970 |
|
Inventories, net |
|
6,628 |
|
4,878 |
|
Prepaid expenses |
|
256 |
|
193 |
|
Deferred taxes |
|
1,067 |
|
896 |
|
Other current assets |
|
689 |
|
801 |
|
Total current assets |
|
24,535 |
|
25,348 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
5,019 |
|
4,356 |
|
Goodwill |
|
6,888 |
|
4,085 |
|
Other intangible assets, net |
|
2,002 |
|
701 |
|
Prepaid pension and other employee benefits |
|
238 |
|
173 |
|
Investments in equity-accounted companies |
|
20 |
|
19 |
|
Deferred taxes |
|
283 |
|
846 |
|
Other non-current assets |
|
884 |
|
767 |
|
Total assets |
|
39,869 |
|
36,295 |
|
|
|
|
|
|
|
Accounts payable, trade |
|
5,187 |
|
4,555 |
|
Billings in excess of sales |
|
1,797 |
|
1,730 |
|
Employee and other payables |
|
1,444 |
|
1,526 |
|
Short-term debt and current maturities of long-term debt |
|
1,191 |
|
1,043 |
|
Advances from customers |
|
1,935 |
|
1,764 |
|
Deferred taxes |
|
403 |
|
357 |
|
Provisions for warranties |
|
1,441 |
|
1,393 |
|
Provisions and other current liabilities |
|
2,723 |
|
2,726 |
|
Accrued expenses |
|
1,692 |
|
1,644 |
|
Total current liabilities |
|
17,813 |
|
16,738 |
|
|
|
|
|
|
|
Long-term debt |
|
2,471 |
|
1,139 |
|
Pension and other employee benefits |
|
828 |
|
831 |
|
Deferred taxes |
|
568 |
|
411 |
|
Other non-current liabilities |
|
1,674 |
|
1,718 |
|
Total liabilities |
|
23,354 |
|
20,837 |
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity: |
|
|
|
|
|
Capital stock and additional paid-in capital (2,314,743,264 and 2,308,782,064 issued shares at June 30, 2011, and December 31, 2010, respectively) |
|
1,614 |
|
1,454 |
|
Retained earnings |
|
15,368 |
|
15,389 |
|
Accumulated other comprehensive loss |
|
(573 |
) |
(1,517 |
) |
Treasury stock, at cost (24,569,324 and 25,317,453 shares at June 30, 2011, and December 31, 2010, respectively) |
|
(428 |
) |
(441 |
) |
Total ABB stockholders equity |
|
15,981 |
|
14,885 |
|
Noncontrolling interests |
|
534 |
|
573 |
|
Total stockholders equity |
|
16,515 |
|
15,458 |
|
Total liabilities and stockholders equity |
|
39,869 |
|
36,295 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited)
|
|
Six months ended |
|
Three months ended |
| ||||
($ in millions) |
|
Jun. 30, 2011 |
|
Jun. 30, 2010 |
|
Jun. 30, 2011 |
|
Jun. 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
1,621 |
|
1,160 |
|
925 |
|
669 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
473 |
|
326 |
|
242 |
|
162 |
|
Pension and other employee benefits |
|
(66 |
) |
30 |
|
(59 |
) |
8 |
|
Deferred taxes |
|
(6 |
) |
70 |
|
(3 |
) |
46 |
|
Net gain from sale of property, plant and equipment |
|
(16 |
) |
(14 |
) |
(7 |
) |
(8 |
) |
Income from equity-accounted companies |
|
(1 |
) |
(2 |
) |
(1 |
) |
(3 |
) |
Other |
|
47 |
|
36 |
|
27 |
|
22 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Trade receivables, net |
|
(260 |
) |
(300 |
) |
(275 |
) |
(383 |
) |
Inventories, net |
|
(899 |
) |
(407 |
) |
(399 |
) |
(127 |
) |
Trade payables |
|
257 |
|
320 |
|
122 |
|
295 |
|
Billings in excess of sales |
|
(12 |
) |
44 |
|
88 |
|
2 |
|
Provisions, net |
|
(265 |
) |
(127 |
) |
(87 |
) |
(34 |
) |
Advances from customers |
|
81 |
|
(96 |
) |
117 |
|
(133 |
) |
Other assets and liabilities, net |
|
173 |
|
36 |
|
201 |
|
133 |
|
Net cash provided by operating activities |
|
1,127 |
|
1,076 |
|
891 |
|
649 |
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of marketable securities (available-for-sale) |
|
(618 |
) |
(1,678 |
) |
(32 |
) |
(1,434 |
) |
Purchases of marketable securities (held-to-maturity) |
|
|
|
(65 |
) |
|
|
(50 |
) |
Purchases of short-term investments |
|
(140 |
) |
(1,576 |
) |
|
|
(138 |
) |
Purchases of property, plant and equipment and intangible assets |
|
(343 |
) |
(280 |
) |
(204 |
) |
(132 |
) |
Acquisition of businesses (net of cash acquired) and changes in cost and equity investments |
|
(3,186 |
) |
(1,154 |
) |
(84 |
) |
(1,101 |
) |
Proceeds from sales of marketable securities (available-for-sale) |
|
2,399 |
|
550 |
|
315 |
|
479 |
|
Proceeds from maturity of marketable securities (available-for-sale) |
|
220 |
|
220 |
|
86 |
|
83 |
|
Proceeds from maturity of marketable securities (held-to-maturity) |
|
|
|
240 |
|
|
|
54 |
|
Proceeds from short-term investments |
|
525 |
|
2,945 |
|
147 |
|
1,302 |
|
Proceeds from sales of property, plant and equipment |
|
15 |
|
24 |
|
9 |
|
10 |
|
Proceeds from sales of businesses and equity-accounted companies (net of cash disposed) |
|
3 |
|
65 |
|
3 |
|
66 |
|
Changes in financing and other non-current receivables, net |
|
(75 |
) |
(20 |
) |
(66 |
) |
(13 |
) |
Net cash provided by (used in) investing activities |
|
(1,200 |
) |
(729 |
) |
174 |
|
(874 |
) |
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
Net changes in debt with original maturities of 90 days or less |
|
97 |
|
36 |
|
46 |
|
14 |
|
Increase in debt |
|
1,317 |
|
167 |
|
1,280 |
|
86 |
|
Repayment of debt |
|
(1,339 |
) |
(267 |
) |
(40 |
) |
(203 |
) |
Issuance of shares |
|
105 |
|
|
|
105 |
|
|
|
Transactions in treasury shares |
|
5 |
|
(104 |
) |
1 |
|
(104 |
) |
Dividends paid |
|
(1,569 |
) |
|
|
(1,569 |
) |
|
|
Acquisition of noncontrolling interests |
|
(11 |
) |
|
|
(11 |
) |
|
|
Dividends paid to noncontrolling shareholders |
|
(110 |
) |
(117 |
) |
(109 |
) |
(101 |
) |
Other |
|
63 |
|
9 |
|
100 |
|
15 |
|
Net cash used in financing activities |
|
(1,442 |
) |
(276 |
) |
(197 |
) |
(293 |
) |
|
|
|
|
|
|
|
|
|
|
Effects of exchange rate changes on cash and equivalents |
|
170 |
|
(654 |
) |
35 |
|
(354 |
) |
|
|
|
|
|
|
|
|
|
|
Net change in cash and equivalents - continuing operations |
|
(1,345 |
) |
(583 |
) |
903 |
|
(872 |
) |
|
|
|
|
|
|
|
|
|
|
Cash and equivalents, beginning of period |
|
5,897 |
|
7,119 |
|
3,649 |
|
7,408 |
|
Cash and equivalents, end of period |
|
4,552 |
|
6,536 |
|
4,552 |
|
6,536 |
|
|
|
|
|
|
|
|
|
|
|
Supplementary disclosure of cash flow information: |
|
|
|
|
|
|
|
|
|
Interest paid |
|
65 |
|
46 |
|
32 |
|
24 |
|
Taxes paid |
|
727 |
|
499 |
|
429 |
|
271 |
|
See Notes to the Interim Consolidated Financial Information
ABB Ltd Interim Consolidated Statements of Changes in Stockholders Equity (unaudited)
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
|
|
| ||||||||
($ in millions) |
|
Capital stock |
|
Retained |
|
Foreign currency |
&nbs |