Zurich, Switzerland, September 18, 2001 - ABB, the global power and automation technology group, today released historical figures restated to reflect its customer-centric structure.
ABB President and CEO Jörgen Centerman said the figures, restated from 1999, clarified the size and scope of ABB's divisions, establishing a baseline for the company's financial reporting going forward.
"Restating ABB's historical financial data according to our new organization improves transparency by providing a better window on our company and the metrics we use to guide our business, and also puts our transformation in context," Centerman said.
"In addition, we are disclosing a separate balance sheet for the Financial Services division. This allows better tracking of our industrial and financial activities," Centerman added.
ABB initiated its transformation in January, creating an organization based on seven divisions. Four end-user divisions serve utilities, process industries, manufacturing and consumer industries, and the oil, gas and petrochemicals sectors. Two divisions serve ABB and external channels with power products and automation products. ABB's Financial Services division is unchanged.
ABB's will report its results according to the new divisional organization for the first time in its third-quarter announcement on October 24.
ABB (www.abb.com) is a global leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering their environmental impact. ABB has 160,000 employees in more than 100 countries.
Division overviews (unaudited)
Please refer to appendix for detailed listing of figures, all of which are presented as if the Company's new internal structure and transaction flow had been in place for all periods presented. The Consolidated Financial Statements for the first half 2001 under the previous structure were already published on July 24 and can be viewed on ABB's web site: www.abb.com/investorrelations
EBIT excluding capital gains is shown in footnotes only if the aggregate of these capital gains is material (in any case if it is more than 10% of divisional EBIT).
Utilities
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Orders | 3'062 | 3'411 | -10% | -3% |
| Revenues | 2'551 | 2'662 | -4% | 2% |
| EBIT* | 86 | 154 | -44% | -42% |
| EBIT Margin | 3.4% | 5.8% |
* EBIT excluding capital gains in the first six months of 2000: US$ 117 million
The ABB Utilities division serves electric, gas and water industries - whether state-owned or private, global or local, operating in liberalized or regulated markets - through a portfolio of capabilities, from essential products to comprehensive services and systems. The Utilities division has approximately 16,000 employees.
Process Industries
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Orders | 1'900 | 1'997 | -5% | 2% |
| Revenues | 1'570 | 1'621 | -3% | 4% |
| EBIT | 71 | 59 | 20% | 28% |
| EBIT Margin | 4.5% | 3.6% |
The ABB Process Industries division serves the chemical, pharmaceutical, petroleum, gas, marine, metals, minerals, mining, cement, pulp, paper and printing industries with a variety of power and automation technology products. The division has strong domain expertise and uses its automation, power, supply chain and service portfolio to create Industrial IT solutionsfocused on these
customers. The division also has approximately 16,000 employees.
Manufacturing and Consumer Industries
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Orders | 2'465 | 3'052 | -19% | -12% |
| Revenues | 2'362 | 2'512 | -6% | 1% |
| EBIT* | 66 | 91 | -27% | -24% |
| EBIT Margin | 2.8% | 3.6% |
* EBIT excluding capital gains in the first six months of 2000: US$ 70 million
The ABB Manufacturing and Consumer Industries division sells products, solutions and services to improve customer productivity and competitiveness in areas like automotive industries, telecom, product manufacturing, electronics, airports, parcel and cargo distribution, public and commercial buildings. It also provides air handling solutions for industrial and environmental processes. The division employs approximately 32,000 people.
Oil, Gas and Petrochemicals
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Orders | 1'990 | 1'991 | 0% | 3% |
| Revenues | 1'548 | 1'212 | 28% | 34% |
| EBIT | 88 | 65 | 35% | 41% |
| EBIT Margin | 5.7% | 5.4% |
The ABB Oil, Gas and Petrochemicals division focuses on systems, products and services for oil and gas drilling both offshore and onshore, and the development and supply of offshore production installations, refineries and petrochemical plants worldwide. The division employs approximately 13,000 people.
Power Technology Products
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Orders | 2'134 | 2'206 | -3% | 2% |
| Revenues | 1'814 | 1'768 | 3% | 9% |
| EBIT | 132 | 141 | -6% | -2% |
| EBIT Margin | 7.3% | 8.0% |
The ABB Power Technology Products division covers the entire spectrum of technology for power transmission and power distribution. It includes transformers, switchgear, breakers, capacitors, cables as well as other products and technologies for high- and medium-voltage applications. All products are currently developed to fit into a common Industrial IT architecture. The increased use of Information Technology (IT), including online product configurators, enables ABB Power Technology Products to deliver within best-in-class cycle times. The division focuses on customers such as industrial, commercial, utilities and external channel partners, e.g. distributors, system integrators, contractors and OEMs (original equipment manufacturers). It has approximately 29,000 employees.
Automation Technology Products
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Orders | 2'687 | 2'839 | -5% | 1% |
| Revenues | 2'572 | 2'544 | 1% | 8% |
| EBIT | 219 | 223 | -2% | 5% |
| EBIT Margin | 8.5% | 8.8% |
The ABB Automation Technology Products division provides products, systems, software and services for the automation and optimization of discrete, process and batch manufacturing operations plus related business aspects. Key technologies include measurement control, instrumentation, process analysis, drives and motors, power electronics, robots, and low-voltage products; all geared toward one common industrial IT architecture for real-time automation and information solutions across the business enterprise. These technologies are sold both through third-party channels (OEM's, system integrators, distributors) and through the ABB end-user divisions. It has approximately 43,000 employees.
Financial Services
| US$ in millions, except where indicated | Jan-Jun 2001 | Jan-Jun 2000 | Change | Change in local currencies |
| Revenues | 1'019 | 984 | 4% | 9% |
| EBIT | 203 | 188 | 8% | 17% |
The ABB Financial Services division supports its internal and external customers with innovative financial solutions in structured finance, leasing, project development and ownership, financial consulting, insurance and treasury activities. The division employs approximately 1,200 people.
Important dates
October 24, 2001 9 months 2001 results
October 29-30, 2001 Analyst Days in Zurich
October 29 Media Briefing in Zurich
Conference call
Details of today's conference call are as follows:
Time: Conference call begins at 4:00 p.m. CET (Central European Time)
3:00 p.m. UK time
10:00 a.m. EST (Eastern Standard Time)
Dial-in: +41 91 610 4111 (if calling from Europe)
+1 412 858 4600 (if calling from the US)
Please ask to be connected to the conference call
Replay: +41 91 610 2500 access code: 143 (if calling from Europe)
+1 412 858 1440 access code: 143 (if calling from the US) The replay will be available for 72 hours commencing 2 hours after the conference
Literature: Presentation material will be available in .pdf format
on September 18 at 12:00 a.m. CET on ABB's web site: www.abb.com/investorrelations
