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ABB GROUP REPORTS NINE-MONTH RESULTS

 ZURICH, Nov. 25 ~PRNewswire~ -- The ABB Asea Brown Boveri Group reported today that orders received for the first nine months of 1992 were $24 billion, an increase of 15 percent compared to the corresponding period last year ($20.8 billion). Other than Environmental Control, all Business Segments reported an increased level of orders received.
 Large orders in the third quarter included several contracts for power generating equipment as well as complete power plants from China, Puerto Rico, The Netherlands, the United States and Germany. Important orders for railway equipment and systems came from the United States, Australia and Germany. The effect of currency translation on the 1992 results was not significant.
 Revenues for the first nine months of 1992 totaled $21.1 billion, or 4 percent higher than last year ($20.3 billion). The order backlog on Sept. 30, 1992 was $33 billion, 28 percent higher than a year ago.
 ABB Group operating earnings after depreciation totaled $1.26 billion, a decrease of 3 percent compared to last year ($1.29 billion). Earnings after financial items were $731 million, a decrease of 3 percent compared to last year ($754 million).
 The Power Plants Business Segment continued its strong profit improvement, due to improved efficiencies and good volume growth. Environmental Control Segment earnings decreased sharply, mainly due to weak demand in recession-affected northern European construction markets. As announced in September, the businesses of this Segment have been integrated into other Segments. The Transportation Segment also showed reduced earnings. The Power Transmission, Power Distribution, Industry and Various Activities Business Segments all reported levels of earnings about equal to the same period last year. The Financial Services operations have weathered the recent turmoil in financial markets in a very satisfactory fashion.
 Primarily due to lower non-recurring gains, income before taxes decreased by 11 percent to $679 million, compared to $761 million in the previous year.
 The recessionary conditions persisted in most of ABB's key home markets. In Western Europe there was an unexpected deterioration of demand in recent months for investment goods. The turmoil in the financial markets has contributed to uncertainty in the short-term outlook and many customers are placing priority on conserving cash and therefore tend to delay investment projects. This has increased the downward pressure on prices and volumes for some ABB businesses. At the same time, order intake continues strong for large infrastructure- related projects, particularly in power. The Asia and Middle East markets show good growth.
 Ongoing cost-saving programs introduced more than two years ago contributed positively to earnings both in 1991 and 1992, and almost offset the negative impact of the recessionary conditions this year. Excluding divestitures and acquisitions, for the second consecutive year the overall level of employment is being reduced at a rate exceeding 1,000 people a month. Continued cash generation resulted in an improvement in net interest expense.
 In preparation for the Common Market 1993 with an expected increase in the cross-border supply of products for public procurement, the pace of restructuring of plants in Western Europe is being increased. This restructuring will also include newly acquired facilities in Central and Eastern Europe. These changes will increase ABB's competitiveness in the long term. Simultaneously, investments in Asia have been increased substantially to build ABB's presence in several high growth markets there.
 Earnings after Financial Items for the full year are expected to be somewhat below the level of 1991. Due to a different geographical mix of the Group's pre-tax earnings, the tax rate for 1992 will increase, but this is expected to be a temporary occurrence.
 ABB ASEA BROWN BOVERI GROUP
 Consolidated Income Statement
 (US $ millions)
 Periods ended Nine months Full year
 1992 1991 1991
 Revenues 21,098 20,310 28,883
 Material expenses (8,506) (8,205) (11,764)
 Personnel expenses (7,427) (6,925) (9,482)
 Other expenses (3,784) (3,525) (4,911)
 Change in work in
 progress and
 finished goods 548 249 1
 Depreciation of
 fixed assets (671) (613) (819)
 Operating earnings after
 depreciation 1,258 1,291 1,908
 Earnings from associated~
 divested companies 9 10 19
 Dividend income 17 10 13
 Interest income 701 677 798
 Interest on advances (339) (292) (440)
 Interest expense (917) (957) (1,158)
 Exchange and translation
 differences 2 15 13
 Earnings after
 financial items 731 754 1,153
 Nonrecurring items (52) 7 (105)
 Income before taxes 679 761 1,048
 NOTE: Exchange rates used in the above income statement are average for the respective period. The average exchange rates for the Swiss Franc and the Swedish Krona are stated below:
 Periods ended Nine months Full year
 1992 1991 1991
 1.00 US$ = SFr.: 1.39 1.42 1.42
 1.00 US$ = SKr.: 5.62 6.05 6.01
 -0- 11~25~92
 ~CONTACT: Karen Armour for Asea Brown Boveri Group, 203-328-2217, or evenings, 203-655-9461~
 (ASEAY)


CO: ABB Asea Brown Boveri Group ST: IN: CPR SU: ERN

SH -- NY006 -- 1402 11~25~92 09:23 EST
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Publication:PR Newswire
Date:Nov 25, 1992
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