Year ended December 31
(US$ in millions)
| 1996 | 1995 | |
| Revenues | 34,574 | 33,738 |
| Material expenses | -15,309 | -14,604 |
| Personnel expenses | -10,254 | -10,246 |
| Other expenses | -5,232 | -5,410 |
| Changes in work in progress and finished goods | 255 | 572 |
| Depreciation of fixed assets | -1,044 | -1,021 |
| Unusual items (2) | 36 | 246 |
| Operating Earnings after Depreciation | 3,026 | 3,275 |
| Earnings from equity accounted companies | 6 | 12 |
| Dividend income | 15 | 14 |
| Interest income | 362 | 509 |
| Interest on advances | -807 | -987 |
| Interest expense | -618 | -694 |
| Exchange differences | 23 | -19 |
| Income before Taxes | 2,007 | 2,110 |
| Taxes | -765 | -749 |
| Net Income before Minority Interest | 1,242 | 1,361 |
| Minority Interest | -9 | -46 |
| Net Income | 1,233 | 1,315 |
1) The ABB Daimler-Benz Transportation Group GmbH (Adtranz) was formed as of December 31, 1995, and started its operations in 1996. This Group is included on a proportionate basis (50 percent of each position) in ABB's income statement for 1996.
2) All items related to:
- capital gains/losses on sales of participations, land and buildings
- discontinued operations
- as well as the one-time effects of changes in accounting principles (1995 only)
are recorded under "Unusual items" and included in operating earnings after depreciation.
Note: Exchange rates used in the above income statement are average for the periods shown. The average exchange rates for the Swiss franc, Swedish krona German mark, and European Currency Unit (ECU) are stated below:
| Average 1996 | ||
| USD 1.00 = SFr.: | 1.23 | 1.18 |
| USD 1.00 = SKr.: | 6.71 | 7.11 |
| USD 1.00 = DM: | 1.50 | 1.43 |
| USD 1.00 = ECU: | 0.80 | 0.77 |
For 1996, changes in exchange rates did not have any significant effect on reported results.
