ABB GROUP REPORT FOR THE FIRST THREE MONTHS OF 1993
ZURICH, Switzerland, May 14 /PRNewswire/ -- The ABB Asea Brown Boveri Group reported today that orders received for the first three months of 1993 amounted to $7.6 billion, a decrease of 3 percent compared to the corresponding period last year (3 months 1992: $7.8 billion). However, excluding exchange rate fluctuations, orders received increased by approximately 6 percent. Increases in orders received were reported by the Power Plants and Transportation Business Segments as a result of large infrastructure-related projects. Major orders received included combined-cycle power plants from China and the Netherlands as well as orders for railway equipment and systems from several European countries. Revenues for the first three months of 1993 were $6.2 billion, 4 percent lower than last year (3 months 1992: $6.5 billion). Adjusted for exchange rate fluctuations, revenues grew by 4 percent. The order backlog on March 31, 1993 totaled $29.4 billion, 11 percent higher than a year ago. ABB Group operating earnings after depreciation totaled $409 million, an increase of 1 percent compared to last year (3 months 1992: $407 million). Power Plants achieved higher earnings while the other business segments reported roughly unchanged or slightly lower profits. Earnings after financial items amounted to $205 million, which is 9 percent below last year (3 months 1992: $225 million). The decrease in earnings was primarily the result of translation effects when consolidating local currency profits in U.S. dollars. Non-recurring income was lower than last year and contributed to a decrease of income before taxes of 16 percent. Pretax income was $187 million, compared to $222 million last year. The downturn in demand in Western Europe continues with pressure on prices and reduced volumes for several of ABB's businesses. The recent depreciation of some European currencies where ABB has major operations has created opportunities for increased exports from those countries. The positive signals from the North American economic upturn are not yet visible in ABB's overall order intake. Orders from Asia continue to increase at a good rate. Investments in power infrastructure continue to show good growth in most parts of the world.
Personnel reductions continue at a pace of around 1,000 per month in order to adjust to poor conditions in several markets and safeguard productivity improvements. Further, restructuring actions in Europe continue as newly acquired companies in Central and Eastern Europe are integrated.
Market conditions remain weak in Western Europe and the outlook is uncertain. On balance, earnings after financial items for the full year of 1993 are expected to reach about the level of 1992. ABB Asea Brown Boveri Group Consolidated Income Statement (US$ in millions) 3 Months 3 Months 1993 1992 1992 Revenues 6,205 6,482 29,615 Material expenses (2,457) (2,502) (11,789) Personnel expenses (2,198) (2,390) (9,987) Other expenses (1,019) (1,193) (5,351) Change in work in progress and finished goods 89 222 223 Depreciation of fixed assets (211) (212) (901) Operating earnings after depreciation 409 407 1,810 Earnings from associated companies 0 3 17 Dividend income 3 3 17 Interest income 169 206 904 Interest on advances (152) (95) (506) Interest expense (229) (297) (1,147) Exchange and translation differences 5 (2) 15 Earnings after financial items 205 225 1,110 Non-recurring items (18) (3) (164) Income before taxes 187 222 946 NOTE: Exchange rates used in the above income statement are average for the respective period. The average exchange rates for the Swiss Franc, the Swedish Krona and the German Mark are stated below: 3 Months 3 Months 1993 1992 1992 1.00 US$ = SFr.: 1.49 1.44 1.39 1.00 US$ = SKr.: 7.46 5.82 5.81 1.00 US$ = DM: 1.62 1.60 1.55 -0- 5/14/93 /CONTACT: Karen Armour of ABB Asea Brown Boveri Group, 203-328-2217, or 203-655-9461 (residence)/
CO: ABB Asea Brown Boveri Group ST: IN: SU: ERN
SH -- NY023 -- 8542 05/14/93 10:02 EDT
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|Date:||May 14, 1993|
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