Parent Companies' Financial Results
ABB AG (Switzerland) and associated company
Since the 1996 Annual General Meeting, BBC Brown Boveri AG has changed its name to ABB AG. ABB AG's main asset is its 50-percent ownership interest in ABB Asea Brown Boveri Ltd, Zurich, Switzerland (ABB). ABB is reported as an associated company. For a full report on the development of the ABB Group refer to the first part of this release.Consolidated earnings
ABB's companies throughout the world report their income and financial position in local currencies which are then translated to US$ to establish the ABB Group's consolidated accounts. In order to compute ABB AG and associated company's earnings, ABB AG's 50-percent share of ABB Group's earnings is translated from US$ to SFr.ABB AG's share of ABB Group's earnings before taxes and after minority interests for the first nine months of 1996 is US$ 670 million (US$ 563 million for the corresponding period in 1995), an increase of 19 percent. The US dollar has slightly firmed from 1995 to 1996 which affected the results positively when translating them into SFr. In SFr., ABB AG's share in ABB's earnings increased by 21 percent, from SFr. 669 million to SFr. 811 million.
ABB AG's own contribution before taxes from cash management activities amounted to SFr. 18 million. This is clearly below the SFr. 37 million of the first nine months of 1995 which was boosted by very favorable financial markets.
Net income increased by 20 percent compared with the same period in 1995.
ABB AG Income Statement (consolidated)
| (Swiss francs in millions) | 1-9/96 | 1-9/95 | 1995 |
| Share in ABB Group earnings (before taxes and after minority) |
811 | 669 | 1,208 |
| Administrative costs, ABB AG | -6 | -4 | -6 |
| Interest Income, ABB AG | 32 | 49 | 67 |
| Interest Expense, ABB AG | -8 | -8 | -11 |
| Income before taxes | 829 | 706 | 1,258 |
| Taxes paid | -194 | -160 | -265 |
| Deferred taxes | -130 | -125 | -171 |
| Net income | 505 | 421 | 822 |
| Earnings per ABB AG bearer share, SFr | 55.40 | 47.75 | 90.20 |
| Currency rate: 1.00 US$ = SFr | 1.21 | 1.19 | 1.18 |
