UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of February 2012

 

Commission File Number 001-16429

 

ABB Ltd

(Translation of registrant’s name into English)

 

P.O. Box 1831, Affolternstrasse 44, CH-8050, Zurich, Switzerland

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x

Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indication by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o

No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

 

 

 



 

This Form 6-K consists of the following:

 

1.              Press release issued by ABB Ltd dated February 16, 2012.

2.              Announcements regarding transactions in ABB Ltd’s Securities made by the directors or the members of the Executive Committee.

 

The information provided by Item 1 above is deemed filed for all purposes under the Securities Exchange Act of 1934.

 

2



 

 

Press Release

 

ABB reports solid fourth quarter performance, 2011 net income up 24%

 

·                  Orders rise 17%(1) (10% organic(2)), revenues up 16% (10% organic)

·                  Full-year orders hit $40 bn for first time, record revenues of $38 billion

·                  Q4 operational EBITDA(3) up 18%, net income 19% higher

·                  $1.7 bn cash from operations in the fourth quarter

·                  Board of Directors proposes dividend of CHF 0.65 for full year, up 8% versus 2010

 

Zurich, Switzerland, Feb. 16, 2012 — ABB reported an increase in profitability in the fourth quarter of 2011 on a combination of strong revenue growth and cost savings. For 2011, the company reached $40 billion in orders for the first time ever and reported record revenues of $38 billion.

 

Operational EBITDA, the measure of profitability tracked by management, rose 18 percent from the fourth quarter a year earlier, to $1.6 billion, on a 16-percent increase in revenues (10 percent organic). The operational profit margin on this basis rose to 14.8 percent from 14.4 percent, due in large part to cost reductions of approximately $330 million and better project execution.

 

Cash from operations in the quarter amounted to approximately $1.7 billion, close to the record $1.8 billion generated in the same quarter of the last two years.

 

Orders rose 17 percent (10 percent organic), helped by increasing demand for low-loss power transmission systems in both mature and emerging markets. Demand from industrial customers for high-efficiency equipment used to reduce operating costs and increase product quality also grew.

 

“We continued to execute well in the fourth quarter, especially on our cost savings and project execution, allowing us to report record revenues and solid earnings in a volatile market environment,” said ABB Chief Executive Officer Joe Hogan. “We saw good demand for energy efficiency solutions in industry and for grid expansions and refurbishment, and we expect that to continue.

 

“At the same time, an unfavorable business mix and ongoing price pressure out of the order backlog will likely weigh on profit margins in the first quarter, but we are more optimistic about the rest of the year and will continue to aggressively pursue growth while retaining our uncompromising approach to cost control.”

 

2011 Q4 and full-year key figures

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

FY 2011

 

FY 2010

 

US$

 

Local

 

Orders

 

10’160

 

8’752

 

16

%

17

%

40’210

 

32’681

 

23

%

18

%

Order backlog (end Dec)

 

27’508

 

26’193

 

5

%

9

%

 

 

 

 

 

 

 

 

Revenues

 

10’571

 

9’179

 

15

%

16

%

37’990

 

31’589

 

20

%

15

%

EBIT

 

1’123

 

978

 

15

%

 

 

4’667

 

3’818

 

22

%

 

 

as % of revenues

 

10.6

%

10.7

%

 

 

 

 

12.3

%

12.1

%

 

 

 

 

Operational EBITDA

 

1’568

 

1’324

 

18

%

 

 

6’014

 

4’824

 

25

%

 

 

as % of operational revenues

 

14.8

%

14.4

%

 

 

 

 

15.8

%

15.3

%

 

 

 

 

Net income

 

830

 

700

 

19

%

 

 

3’168

 

2’561

 

24

%

 

 

Basic net income per share ($)

 

0.36

 

0.31

 

 

 

 

 

1.38

 

1.12

 

 

 

 

 

Dividend per share (CHF)*

 

 

 

 

 

 

 

 

 

0.65

 

0.60

 

8

%

 

 

Cash flow from operating activities

 

1’674

 

1’759

 

-5

%

 

 

3’612

 

4’197

 

-14

%

 

 

Free cash flow

 

 

 

 

 

 

 

 

 

2’593

 

3’397

 

 

 

 

 

as % of net income

 

 

 

 

 

 

 

 

 

82

%

133

%

 

 

 

 

Cash return on invested capital

 

 

 

 

 

 

 

 

 

14

%

21

%

 

 

 

 

 


* Proposed by the Board of Directors

 

(1)  Management discussion of orders and revenues focuses on local currency changes. U.S. dollar changes are reported in the results tables.

(2)  Organic changes exclude the acquisition of Baldor.

(3)  See reconciliation of non-GAAP measures in Appendix 1.

 

3



 

Summary of Q4 2011 results

 

Orders received and revenues

 

Demand for ABB products and solutions continued to grow as industrial and utility customers focused on energy efficiency, industrial productivity and power reliability. In particular, orders improved in the oil, gas and petrochemicals and power utility sectors. Orders increased in the fourth quarter compared to the year earlier due to a significant jump in large orders (above $15 million), including a $900-million Ultra High Voltage Direct Current (UHVDC) power transmission order in India and a $160-million underground HVDC link in Sweden. Large orders increased by 38 percent and represented 23 percent of the total orders in the quarter, compared to about 20 percent in the year-earlier period. Base orders (below $15 million) increased 12 percent (4 percent organic). This was approximately the same growth rate as in the third quarter of 2011.

 

The Discrete Automation and Motion division reported the largest growth in orders, up 49 percent in local currencies, thanks in large part to continued robust demand for high-efficiency electrical motors from Baldor. On an organic basis, orders in Discrete Automation and Motion grew 11 percent. Orders were 6 percent higher in the Low Voltage Products division, mainly on increased demand for low-voltage systems to improve electrical efficiency in industry. The Process Automation division saw orders up 7 percent as commodity prices continued to drive customer investment in new capacity and services to improve the productivity of existing assets, especially in the oil and gas sector.

 

The Power Systems division had a very strong quarter in orders and revenues, confirming longer term trends to interconnect power grids and strengthen power transmission infrastructure in both mature and emerging markets. Power Products orders increased across all businesses, mainly the result of demand from the power distribution and industrial sectors.

 

Regionally, orders rose by 61 percent in Asia on the large power order in India and strong order increases in Australia and Singapore, as well as a 6-percent increase in China. In the Americas, orders grew by 41 percent (11 percent organic), with higher demand in both automation and power. Orders declined 8 percent in Europe, reflecting both slower economic growth and a more challenging comparison with the same quarter a year earlier, when ABB was awarded a $580-million HVDC power transmission order. Orders in the Middle East and Africa were down 18 percent on fewer large orders compared to the same period in 2010.

 

For the Group, service orders grew by 11 percent in the quarter and were 15 percent higher for the full year.

 

The order backlog at the end of December reached $27.5 billion, a local-currency increase of 9 percent compared with the end of the fourth quarter in 2010, and 2 percent lower than at the end of the third quarter in 2011.

 

Revenues continued to grow and were higher in all divisions, supported in large part by execution of the order backlog. Organic revenue growth was 10 percent. Service revenues grew by 12 percent and represented 16 percent of the Group’s total revenues in the fourth quarter. For the full year, service revenues increased 10 percent and represented 16 percent of total revenues.

 

Earnings and net income

 

EBIT in the fourth quarter of 2011 amounted to $1.1 billion, a 15-percent increase compared to the same quarter a year earlier.

 

4



 

Operational EBITDA in the fourth quarter of 2011 amounted to $1.6 billion, an increase of 18 percent over the year-earlier period. The increase in operational EBITDA and operational EBITDA margin mainly reflects the contribution of $525 million of revenues and $97 million of operational EBITDA from the Baldor acquisition, and the non-recurrence of some $120 million in project-related charges in the Power Systems division compared to the same quarter in 2010. Profitability was negatively impacted by continued price pressure in the power divisions—as lower margin orders were executed from the backlog—unfavorable business and product mix and continued investment in sales and research and development.

 

Net income for the quarter grew 19 percent to $830 million. Basic earnings per share amounted to $0.36.

 

As part of the company’s $1-billion cost savings initiative for 2011, savings of approximately $330 million were achieved in the quarter, of which about 50 percent were derived from optimized sourcing. For 2011, total cost savings amounted to $1.1 billion. Costs associated with the program in the fourth quarter were approximately $100 million, bringing the total cost for the full year to approximately $160 million.

 

As the company said at its Capital Markets Day in November, ABB intends to continue its cost savings initiatives in 2012 and aims to further reduce costs by approximately $1 billion, again primarily through global sourcing and operational excellence measures.

 

Acquisitions

 

ABB continued to execute on its strategy to fill key gaps in its product portfolio, geographic coverage and end-market exposure with bolt-on acquisitions. During the fourth quarter, ABB completed the acquisition of Trasfor, a Switzerland-based specialty transformer manufacturer. In December, the company also announced an offer to acquire Switzerland-based Newave Energy International, a manufacturer of uninterrupted power supplies, for a total consideration of approximately $170 million. The deal is expected to be completed in the first quarter of 2012.

 

ABB made a number of other acquisitions in 2011, the largest of which was U.S.-based industrial motor manufacturer Baldor Electric, completed in January and valued at $4.2 billion, including debt repayment. Since being consolidated into ABB’s financial results as of the end of January 2011, Baldor has contributed approximately $2 billion in revenues and approximately $390 million of operational EBITDA.

 

Other acquisitions during the year included Envitech, a Canadian supplier of electrical products for urban transit systems; Powercorp, an Australian renewable power automation company; Lorentzen & Wettre, a Swedish manufacturer of control solutions for the pulp and paper industry; Epyon, a Netherlands-based supplier of electrical vehicle charging solutions; and Mincom, a supplier of enterprise asset management software to the mining and other industries, based in Australia.

 

ABB announced in January 2012 an agreed offer to acquire U.S. low-voltage equipment manufacturer Thomas & Betts for a total cash consideration of $3.9 billion. The transaction, to be fully funded by cash and debt, is expected to be closed in the second quarter of 2012, pending approval of the deal by Thomas & Betts shareholders and customary regulatory approvals.

 

Balance sheet and cash flow

 

Total debt amounted to $4.0 billion compared to $2.2 billion at the end of 2010 and $4.6 billion at the end of the third quarter of 2011.

 

5



 

Net cash at the end of the fourth quarter was $1.8 billion compared with $1 billion at the end of the previous quarter. Cash flow from operations amounted to $1.7 billion, close to the record levels reported in the same quarter in 2010 and 2009. The good performance reflects solid working capital management, mainly reduced inventories and improved receivables collection, partly offset by higher tax payments.

 

At its Capital Markets Day in November 2011, ABB introduced a new measure of return on investment as part of its 2011-2015 financial targets, replacing return on capital employed (ROCE) with cash return on invested capital (CROI). The target is to achieve a CROI above 20 percent by 2015. At the end of 2011, the first year of the five-year target period, CROI was 14 percent, down from 21 percent in 2010 as a result of the $4-billion acquisition of Baldor Electric completed in the first quarter of 2011.

 

ABB returned to the bond market in 2011 with the aim of extending the maturity profile of its long-term debt and securing long-term funding at attractive rates. The company issued two US-dollar denominated bonds in June, totaling $1,250 million—maturing in 2016 and 2021—followed in October by two Swiss franc-denominated bonds totaling CHF 850 million, also maturing in 2016 and 2021. In January 2012, ABB Ltd issued a further CHF 350-million bond, maturing in 2018. In addition, ABB redeemed on maturity a €650-million bond in November, 2011.

 

Dividend

 

ABB’s Board of Directors has proposed a dividend for 2011 of 0.65 Swiss francs per share, compared to 0.60 Swiss francs per share in the prior year. The proposal is in line with the company’s dividend policy to pay a steadily rising, sustainable dividend over time. As it did in 2011, the Board proposes that the dividend be paid from ABB Ltd’s capital contribution reserve, a form of payment that would be exempt from Swiss withholding tax. If approved by shareholders at the company’s annual general meeting on April 26, 2012, the ex-dividend date would be April 30, 2012, for shares traded on the SIX and OMX Nasdaq exchanges and May 1, 2012, for American Depositary Shares traded on the New York Stock Exchange. The respective dividend payout dates would be May 4, 2012, in Switzerland, May 8, 2012 in Sweden, and May 11, 2012 in the United States.

 

Management changes

 

In February 2011, ABB announced that Frank Duggan was appointed to the ABB Executive Committee (EC) as Head of Global Markets, effective March 1, 2011. In December 2011, ABB announced the appointment of Brice Koch, the EC member responsible for Marketing and Customer Solutions, as the Head of the Power Systems division, effective March 1, 2012. He succeeds Peter Leupp, who is retiring. At the same time, Greg Scheu, the head of the Discrete Automation and Motion division in North America, was appointed to the EC to succeed Koch as Head of Marketing and Customer Solutions, effective July 1, 2012.

 

Outlook

 

The long-term outlook for ABB remains positive, with utilities continuing to invest in grid upgrades and industries spending more on automation solutions to increase energy efficiency and productivity.

 

Macroeconomic volatility makes short-term forecasts more challenging. There are signs of recovery in the North American economy and China appears to be returning to a focus on growth, while uncertainty around government budget deficits in Europe remains high.

 

From the perspective of ABB’s short-term business development, management expects low single-digit growth in most of its early-cycle businesses until confidence in the macroeconomic outlook

 

6



 

improves. Price pressure is expected to continue in parts of the power business, in line with the company’s previous guidance. The unfavorable business mix seen in most divisions in the fourth quarter of 2011 is expected to continue into the first quarter of 2012, weighing on margins. This trend is not expected to continue over the rest of the year. Management will continue to drive further improvements in cost and productivity going forward.

 

At the same time, the company’s strong order backlog and continued customer investments in areas such as power distribution and oil and gas, as well as its exposure to fast-growing emerging markets, are expected to provide ample opportunities for profitable growth in 2012 and the company will continue to expand sales forces and accelerate product development in order to capture these opportunities.

 

Divisional performance

 

Power Products

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

FY 2011

 

FY 2010

 

US$

 

Local

 

Orders

 

2,738

 

2,533

 

8

%

8

%

11,068

 

9,778

 

13

%

8

%

Order backlog (end Dec)

 

8,029

 

7,930

 

1

%

4

%

 

 

 

 

 

 

 

 

Revenues

 

3,083

 

2,913

 

6

%

6

%

10,869

 

10,199

 

7

%

2

%

EBIT

 

353

 

454

 

-22

%

 

 

1,476

 

1,636

 

-10

%

 

 

as % of revenues

 

11.4

%

15.6

%

 

 

 

 

13.6

%

16.0

%

 

 

 

 

Operational EBITDA(1)

 

460

 

527

 

-13

%

 

 

1,782

 

1,861

 

-4

%

 

 

as % of operational revenues

 

14.8

%

18.0

%

 

 

 

 

16.3

%

18.2

%

 

 

 

 

Cash flow from operating activities

 

548

 

658

 

-17

%

 

 

1,095

 

1,756

 

-38

%

 

 

 


(1) See reconciliation of non-GAAP measures in Appendix 1

 

Orders increased across all businesses during the quarter, driven primarily by demand from the power distribution and industrial sectors. Market uncertainty persists and a recovery in the transmission sector depends on an overall improvement in economic conditions and utilities becoming more active on capital investment.

 

Regionally, orders were higher in the Americas and Asia, mainly due to a growth in base orders, and declined in Europe as a result of delayed investments.

 

Revenues grew in all businesses with service revenues growing faster than total revenues.

 

The lower operational EBITDA and EBITDA margin in the quarter was due mainly to the execution of lower margin order backlog, reflecting the weaker pricing environment seen in 2010 and 2011. Margins were also affected by a less favorable product mix. Savings from ongoing sourcing, operational improvements and footprint initiatives partially compensated this impact.

 

7



 

Power Systems

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

FY 2011

 

FY 2010

 

US$

 

Local

 

Orders

 

3,130

 

2,626

 

19

%

21

%

9,278

 

7,896

 

18

%

12

%

Order backlog (end Dec)

 

11,570

 

10,929

 

6

%

11

%

 

 

 

 

 

 

 

 

Revenues

 

2,412

 

2,088

 

16

%

17

%

8,101

 

6,786

 

19

%

14

%

EBIT

 

145

 

3

 

n.a.

 

 

 

548

 

114

 

381

%

 

 

as % of revenues

 

6.0

%

0.1

%

 

 

 

 

6.8

%

1.7

%

 

 

 

 

Operational EBITDA(1)

 

238

 

69

 

245

%

 

 

743

 

304

 

144

%

 

 

as % of operational revenues

 

9.9

%

3.3

%

 

 

 

 

9.1

%

4.5

%

 

 

 

 

Cash flow from operating activities

 

306

 

512

 

-40

%

 

 

288

 

443

 

-35

%

 

 

 


(1) See reconciliation of non-GAAP measures in Appendix 1

 

Strong order growth in the quarter was driven mainly by an increase in large orders, including an Ultra High Voltage Direct Current (UHVDC) transmission system order in India and a cable system order in Sweden with a combined value of more than $1 billion.

 

Orders increased in Asia and the Americas on utility investments in grid upgrades. Orders were lower in Europe where market uncertainty impacted the timing of utility capital investments.

 

Revenue growth reflected the execution of the strong order backlog, which reached a record level at the end of the year.

 

Most of the increase in operational EBITDA and operational EBITDA margin in the fourth quarter reflects a favorable comparison to the same period in 2010, when significant project-related charges were incurred in the cables business. In addition, operational EBITDA in the fourth quarter of 2011 was positively impacted by successful claims management.

 

Discrete Automation and Motion

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

FY 2011

 

FY 2010

 

US$

 

Local

 

Orders

 

2,230

 

1,505

 

48

%

49

%

9,566

 

5,862

 

63

%

57

%

Order backlog (end Dec)

 

4,120

 

3,350

 

23

%

26

%

 

 

 

 

 

 

 

 

Revenues

 

2,365

 

1,657

 

43

%

44

%

8,806

 

5,617

 

57

%

51

%

EBIT

 

338

 

280

 

21

%

 

 

1,294

 

911

 

42

%

 

 

as % of revenues

 

14.3

%

16.9

%

 

 

 

 

14.7

%

16.2

%

 

 

 

 

Operational EBITDA(1)

 

411

 

301

 

37

%

 

 

1,664

 

1,026

 

62

%

 

 

as % of operational revenues

 

17.4

%

18.2

%

 

 

 

 

18.9

%

18.3

%

 

 

 

 

Cash flow from operating activities

 

410

 

204

 

101

%

 

 

1,086

 

573

 

90

%

 

 

 


(1) See reconciliation of non-GAAP measures in Appendix 1

 

Orders grew in the quarter for all businesses, although at a slower rate than in the previous three quarters. Organic order growth amounted to 11 percent in local currencies. Demand for energy-efficient industrial products and solutions remained strong, especially in emerging markets, reflecting the positive economic development. Baldor continued its strong growth in North America as demand for high-efficiency motors continued. Orders continued to grow in Europe at a single-digit pace.

 

Revenue growth in the quarter mainly reflects execution of the strong order backlog.

 

8


 


 

Operational EBITDA increased on higher revenues and the contribution from Baldor. Operational EBITDA margin declined compared to fourth quarter 2010 due to an unfavorable product and business mix along with increasing investments in business development, sales, and R&D.

 

Low Voltage Products

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

FY 2011

 

FY 2010

 

US$

 

Local

 

Orders

 

1,204

 

1,142

 

5

%

6

%

5,364

 

4,686

 

14

%

9

%

Order backlog (end Dec)

 

887

 

838

 

6

%

9

%

 

 

 

 

 

 

 

 

Revenues

 

1,348

 

1,254

 

7

%

7

%

5,304

 

4,554

 

16

%

11

%

EBIT

 

209

 

200

 

5

%

 

 

904

 

788

 

15

%

 

 

as % of revenues

 

15.5

%

15.9

%

 

 

 

 

17.0

%

17.3

%

 

 

 

 

Operational EBITDA(1)

 

256

 

252

 

2

%

 

 

1,059

 

926

 

14

%

 

 

as % of operational revenues

 

19.0

%

20.1

%

 

 

 

 

19.9

%

20.3

%

 

 

 

 

Cash flow from operating activities

 

312

 

280

 

11

%

 

 

548

 

717

 

-24

%

 

 

 


(1) See reconciliation of non-GAAP measures in Appendix 1

 

Orders continued to grow in the fourth quarter but at a pace that reflects generally weaker early-cycle demand in most markets. Growth was strongest for engineered solutions, such as large electrical panels used in a variety of industrial applications, while growth was more modest for products like breakers and switches. Regionally, orders were up in the main European and Asian markets, and were also higher in the Americas. Orders declined in the Middle East and Africa. Service orders grew at a faster pace than total orders.

 

Revenues grew faster than orders on execution of the strong order backlog in low-voltage systems.

 

Higher revenues drove the increase in operational EBITDA, supported by price increases implemented successfully earlier in the year to offset rising raw material costs. The higher share of systems revenues during the quarter resulted in a decline in operational EBITDA margin.

 

Process Automation

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

FY 2011

 

FY 2010

 

US$

 

Local

 

Orders

 

1,881

 

1,764

 

7

%

7

%

8,726

 

7,383

 

18

%

12

%

Order backlog (end Dec)

 

5,771

 

5,530

 

4

%

8

%

 

 

 

 

 

 

 

 

Revenues

 

2,317

 

2,101

 

10

%

10

%

8,300

 

7,432

 

12

%

6

%

EBIT

 

243

 

198

 

23

%

 

 

963

 

759

 

27

%

 

 

as % of revenues

 

10.5

%

9.4

%

 

 

 

 

11.6

%

10.2

%

 

 

 

 

Operational EBITDA(1)

 

272

 

293

 

-7

%

 

 

1,028

 

925

 

11

%

 

 

as % of operational revenues

 

11.8

%

13.8

%

 

 

 

 

12.4

%

12.5

%

 

 

 

 

Cash flow from operating activities

 

416

 

222

 

87

%

 

 

904

 

738

 

22

%

 

 

 


(1) See reconciliation of non-GAAP measures in Appendix 1

 

Order growth in the quarter was primarily driven by capital spending in the oil and gas sector. Base orders contributed to the majority of the growth, fueled by strong orders in measurement products, while large orders were flat.

 

9



 

Regionally, Europe recorded strong growth driven by oil and gas investment in an offshore gas platform in Norway. Orders also grew in the Americas, led by Brazil and the U.S. Orders remained steady in Asia.

 

The revenue increase was driven by the execution of the strong order backlog in the oil and gas, minerals and pulp and paper businesses as well as turbocharging and measurement products.

 

The lower operational EBITDA and EBITDA margin reflects a higher share of lower margin systems orders executed out of the backlog, higher research and development costs related to growth initiatives, and the impact of the strong Swiss franc on the turbocharging business.

 

More information

 

The 2011 Q4 results press release is available from Feb. 16, 2012, on the ABB News Center at www.abb.com/news and on the Investor Relations homepage at www.abb.com/investorrelations, where a presentation for investors will also be published.

 

A video from Chief Executive Officer Joe Hogan on ABB’s fourth-quarter 2011 results will be available at 06:30 am today at www.youtube.com/abb.

 

ABB will host a press conference and call starting at 10:00 a.m. Central European Time (CET). U.K. callers should dial +44 203 059 5862. From Sweden, +46 8 5051 0031, and from the rest of Europe, +41 91 610 5600. Lines will be open 15 minutes before the conference starts. Playback of the call will start 1 hour after the call ends and will be available for 24 hours: Playback numbers: +44 207 108 6233 (U.K.), +41 91 612 4330 (rest of Europe) or +1 866 416 2558 (U.S./Canada). The code is 19950, followed by the # key. The recorded session will also be available as a podcast 1 hour after the end of the call and can be downloaded from www.abb.com/news.

 

A conference call for analysts and investors is scheduled to begin today at 2:00 p.m. CET (1:00 p.m. in the UK, 8:00 a.m. EDT). Callers should dial +1 866 291 4166 from the U.S./Canada (toll-free), +44 203 059 5862 from the U.K., or +41 91 610 56 00 from the rest of the world. Callers are requested to phone in 15 minutes before the start of the call. The recorded session will be available as a podcast one hour after the end of the conference call and can be downloaded from our website. You will find the link to access the podcast at www.abb.com.

 

Investor calendar 2012

 

 

Annual Report 2011 publication

 

March 15, 2012

First-quarter 2012 results

 

April 25, 2012

Annual General Meeting Zurich, Switzerland

 

April 26, 2012

Annual Information Meeting Västerås, Sweden

 

April 27, 2012

Second-quarter 2012 results

 

July 26, 2012

Third-quarter 2012 results

 

October 25, 2012

 

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 135,000 people.

 

Zurich, February 16, 2012

Joe Hogan, CEO

 

Important notice about forward-looking information

 

This press release includes forward-looking information and statements as well as other statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans” or similar expressions. However, there are many risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others, business risks associated with the volatile global economic environment and political conditions, costs associated with compliance activities, raw materials availability and prices, market acceptance of new products and services, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.

 

For more information please contact:

 

Media Relations:

Investor Relations:

ABB Ltd

Thomas Schmidt, Antonio Ligi

Switzerland: Tel. +41 43 317 7111

Affolternstrasse 44

(Zurich, Switzerland)

USA: Tel. +1 203 750 7743

CH-8050 Zurich, Switzerland

Tel: +41 43 317 6568

investor.relations@ch.abb.com

 

media.relations@ch.abb.com

 

 

 

10



 

ABB Q4 and full-year 2011 key figures

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q4 11

 

Q4 10

 

US$

 

Local

 

2011

 

2010

 

US$

 

Local

 

Orders

Group

 

10,160

 

8,752

 

16

%

17

%

40,210

 

32,681

 

23

%

18

%

 

Power Products

 

2,738

 

2,533

 

8

%

8

%

11,068

 

9,778

 

13

%

8

%

 

Power Systems

 

3,130

 

2,626

 

19

%

21

%

9,278

 

7,896

 

18

%

12

%

 

Discrete Automation & Motion

 

2,230

 

1,505

 

48

%

49

%

9,566

 

5,862

 

63

%

57

%

 

Low Voltage Products

 

1,204

 

1,142

 

5

%

6

%

5,364

 

4,686

 

14

%

9

%

 

Process Automation

 

1,881

 

1,764

 

7

%

7

%

8,726

 

7,383

 

18

%

12

%

 

Corporate and other (inter-division eliminations)

 

(1,023

)

(818

)

 

 

 

 

(3,792

)

(2,924

)

 

 

 

 

Revenues

Group

 

10,571

 

9,179

 

15

%

16

%

37,990

 

31,589

 

20

%

15

%

 

Power Products

 

3,083

 

2,913

 

6

%

6

%

10,869

 

10,199

 

7

%

2

%

 

Power Systems

 

2,412

 

2,088

 

16

%

17

%

8,101

 

6,786

 

19

%

14

%

 

Discrete Automation & Motion

 

2,365

 

1,657

 

43

%

44

%

8,806

 

5,617

 

57

%

51

%

 

Low Voltage Products

 

1,348

 

1,254

 

7

%

7

%

5,304

 

4,554

 

16

%

11

%

 

Process Automation

 

2,317

 

2,101

 

10

%

10

%

8,300

 

7,432

 

12

%

6

%

 

Corporate and other (inter-division eliminations)

 

(954

)

(834

)

 

 

 

 

(3,390

)

(2,999

)

 

 

 

 

EBIT

Group

 

1,123

 

978

 

15

%

 

 

4,667

 

3,818

 

22

%

 

 

 

Power Products

 

353

 

454

 

-22

%

 

 

1,476

 

1,636

 

-10

%

 

 

 

Power Systems

 

145

 

3

 

n.a.

 

 

 

548

 

114

 

381

%

 

 

 

Discrete Automation & Motion

 

338

 

280

 

21

%

 

 

1,294

 

911

 

42

%

 

 

 

Low Voltage Products

 

209

 

200

 

5

%

 

 

904

 

788

 

15

%

 

 

 

Process Automation

 

243

 

198

 

23

%

 

 

963

 

759

 

27

%

 

 

 

Corporate and other (inter-division eliminations)

 

(165

)

(157

)

 

 

 

 

(518

)

(390

)

 

 

 

 

EBIT %

Group

 

10.6

%

10.7

%

 

 

 

 

12.3

%

12.1

%

 

 

 

 

 

Power Products

 

11.4

%

15.6

%

 

 

 

 

13.6

%

16.0

%

 

 

 

 

 

Power Systems

 

6.0

%

0.1

%

 

 

 

 

6.8

%

1.7

%

 

 

 

 

 

Discrete Automation & Motion

 

14.3

%

16.9

%

 

 

 

 

14.7

%

16.2

%

 

 

 

 

 

Low Voltage Products

 

15.5

%

15.9

%

 

 

 

 

17.0

%

17.3

%

 

 

 

 

 

Process Automation

 

10.5

%

9.4

%

 

 

 

 

11.6

%

10.2

%

 

 

 

 

Operational EBITDA*

Group

 

1,568

 

1,324

 

18

%

 

 

6,014

 

4,824

 

25

%

 

 

 

Power Products

 

460

 

527

 

-13

%

 

 

1,782

 

1,861

 

-4

%

 

 

 

Power Systems

 

238

 

69

 

245

%

 

 

743

 

304

 

144

%

 

 

 

Discrete Automation & Motion

 

411

 

301

 

37

%

 

 

1,664

 

1,026

 

62

%

 

 

 

Low Voltage Products

 

256

 

252

 

2

%

 

 

1,059

 

926

 

14

%

 

 

 

Process Automation

 

272

 

293

 

-7

%

 

 

1,028

 

925

 

11

%

 

 

Operational EBITDA %

Group

 

14.8

%

14.4

%

 

 

 

 

15.8

%

15.3

%

 

 

 

 

 

Power Products

 

14.8

%

18.0

%

 

 

 

 

16.3

%

18.2

%

 

 

 

 

 

Power Systems

 

9.9

%

3.3

%

 

 

 

 

9.1

%

4.5

%

 

 

 

 

 

Discrete Automation & Motion

 

17.4

%

18.2

%

 

 

 

 

18.9

%

18.3

%

 

 

 

 

 

Low Voltage Products

 

19.0

%

20.1

%

 

 

 

 

19.9

%

20.3

%

 

 

 

 

 

Process Automation

 

11.8

%

13.8

%

 

 

 

 

12.4

%

12.5

%

 

 

 

 

 


* See reconciliation of non-GAAP measures in Appendix 1 and in Note 14 to the Interim Consolidated Financial Information (unaudited)

 

11



 

Q4 2011 orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions 

 

Q4 11

 

Q4 10

 

US$

 

Local

 

Q4 11

 

Q4 10

 

US$

 

Local

 

Europe

 

3,482

 

3,789

 

-8

%

-8

%

3,985

 

3,558

 

12

%

12

%

Americas

 

2,439

 

1,762

 

38

%

41

%

2,571

 

1,840

 

40

%

42

%

Asia

 

3,327

 

2,041

 

63

%

61

%

2,856

 

2,592

 

10

%

9

%

Middle East and Africa

 

912

 

1,160

 

-21

%

-18

%

1,159

 

1,189

 

-3

%

-1

%

Group total

 

10,160

 

8,752

 

16

%

17

%

10,571

 

9,179

 

15

%

16

%

 

Full-year 2011 orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions

 

2011

 

2010

 

US$

 

Local

 

2011

 

2010

 

US$

 

Local

 

Europe

 

15,202

 

13,781

 

10

%

4

%

14,657

 

12,378

 

18

%

11

%

Americas

 

9,466

 

6,223

 

52

%

50

%

9,043

 

6,213

 

46

%

43

%

Asia

 

12,103

 

8,720

 

39

%

32

%

10,136

 

8,872

 

14

%

9

%

Middle East and Africa

 

3,439

 

3,957

 

-13

%

-15

%

4,154

 

4,126

 

1

%

-2

%

Group total

 

40,210

 

32,681

 

23

%

18

%

37,990

 

31,589

 

20

%

15

%

 

Operational EBIT and Operational EBITDA Q4 2011 vs Q4 2010

 

 

 

ABB

 

Power
Products

 

Power
Systems

 

Discrete Automation
& Motion

 

Low Voltage
Products

 

Process Automation

 

 

 

Q4 11

 

Q4 10

 

Q4 11

 

Q4 10

 

Q4 11

 

Q4 10

 

Q4 11

 

Q4 10

 

Q4 11

 

Q4 10

 

Q4 11

 

Q4 10

 

Revenues (as per Financial Statements)

 

10,571

 

9,179

 

3,083

 

2,913

 

2,412

 

2,088

 

2,365

 

1,657

 

1,348

 

1,254

 

2,317

 

2,101

 

FX/commodity timing differences in Revenues

 

(2

)

32

 

19

 

10

 

(12

)

5

 

1

 

(6

)

2

 

(1

)

(9

)

24

 

Operational revenues

 

10,569

 

9,211

 

3,102

 

2,923

 

2,400

 

2,093

 

2,366

 

1,651

 

1,350

 

1,253

 

2,308

 

2,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (as per Financial Statements)

 

1,123

 

978

 

353

 

454

 

145

 

3

 

338

 

280

 

209

 

200

 

243

 

198

 

FX/commodity timing differences in EBIT

 

53

 

35

 

10

 

0

 

15

 

15

 

8

 

(11

)

(1

)

(4

)

2

 

46

 

Restructuring-related costs

 

107

 

116

 

44

 

23

 

33

 

23

 

1

 

10

 

19

 

29

 

7

 

29

 

Acquisition-related expenses and certain non-recurring items

 

20

 

0

 

0

 

0

 

0

 

0

 

3

 

0

 

0

 

0

 

0

 

0

 

Operational EBIT

 

1,303

 

1,129

 

407

 

477

 

193

 

41

 

350

 

279

 

227

 

225

 

252

 

273

 

Operational EBIT margin

 

12.3

%

12.3

%

13.1

%

16.3

%

8.0

%

2.0

%

14.8

%

16.9

%

16.8

%

18.0

%

10.9

%

12.8

%

Depreciation (reversal of)

 

174

 

145

 

43

 

43

 

21

 

12

 

32

 

19

 

27

 

26

 

15

 

15

 

Amortization (reversal of)

 

91

 

50

 

10

 

7

 

24

 

16

 

29

 

3

 

2

 

1

 

5

 

5

 

Operational EBITDA

 

1,568

 

1,324

 

460

 

527

 

238

 

69

 

411

 

301

 

256

 

252

 

272

 

293

 

Operational EBITDA margin

 

14.8

%

14.4

%

14.8

%

18.0

%

9.9

%

3.3

%

17.4

%

18.2

%

19.0

%

20.1

%

11.8

%

13.8

%

 

12


 


 

Appendix I

Reconciliation of non-GAAP measures

(US$ millions)

 

 

 

Three months ended Dec. 31,

 

Year ended Dec. 31,

 

 

 

2011

 

2010

 

2011

 

2010

 

EBIT Margin (= EBIT as % of revenues)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest and taxes (EBIT)

 

1,123

 

978

 

4,667

 

3,818

 

Revenues

 

10,571

 

9,179

 

37,990

 

31,589

 

EBIT Margin

 

10.6

%

10.7

%

12.3

%

12.1

%

 

 

 

 

 

 

 

 

 

 

EBIT as per financial statements

 

1,123

 

978

 

4,667

 

3,818

 

reversal of:

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives (FX, commodities, embedded derivatives)

 

44

 

26

 

158

 

3

 

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

21

 

(2

)

32

 

9

 

Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)

 

(12

)

11

 

(109

)

79

 

Restructuring and restructuring-related expenses

 

107

 

116

 

164

 

213

 

Acquisition-related expenses and certain non-recurring items

 

20

 

 

122

(1)

 

Operational EBIT

 

1,303

 

1,129

 

5,034

 

4,122

 

reversal of:

 

 

 

 

 

 

 

 

 

Depreciation

 

174

 

145

 

660

 

545

 

Amortization

 

91

 

50

 

335

 

157

 

Backlog amortization related to significant acquisitions

 

 

 

 

 

(15

)

 

 

Operational EBITDA

 

1,568

 

1,324

 

6,014

 

4,824

 

 

 

 

 

 

 

 

 

 

 

Revenues as per financial statements

 

10,571

 

9,179

 

37,990

 

31,589

 

reversal of:

 

 

 

 

 

 

 

 

 

Unrealized gains and losses on derivatives

 

(34

)

17

 

188

 

(80

)

Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized

 

28

 

(21

)

33

 

(28

)

Unrealized foreign exchange movements on receivables (and related assets)

 

4

 

36

 

(123

)

100

 

Operational Revenues

 

10,569

 

9,211

 

38,088

 

31,581

 

 

 

 

 

 

 

 

 

 

 

Operational EBITDA Margin (= Operational EBITDA as % of Operational Revenues)

 

14.8

%

14.4

%

15.8

%

15.3

%

 


(1)  includes $15 million backlog amortization related to Baldor

 

 

 

Year ended Dec. 31,

 

 

 

2011

 

2010

 

Net Cash (= Cash and equivalents plus marketable securities and short-term investments, less total debt)

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

4,819

 

5,897

 

Marketable securities and short-term investments

 

948

 

2,713

 

Cash and marketable securities

 

5,767

 

8,610

 

Short-term debt and current maturities of long-term debt

 

765

 

1,043

 

Long-term debt

 

3,231

 

1,139

 

Total debt

 

3,996

 

2,182

 

Net Cash

 

1,771

 

6,428

 

 

13



 

 

 

Year ended Dec. 31,

 

 

 

2011

 

2010

 

Cash Return on Capital Invested (CROI)

 

 

 

 

 

CROI = (Net cash provided by operating activities + Interest Paid) / Capital Invested

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

3,612

 

4,197

 

Interest paid

 

165

 

94

 

Adjustment to annualize Baldor’s net cash provided by operating activities

 

27

 

 

Adjusted Cash Return

 

3,804

 

4,291

 

 

 

 

 

 

 

Capital Invested

 

 

 

 

 

Capital Invested = Fixed Assets + Net Working Capital + Accumulated Depreciation and Amortization

 

 

 

 

 

Property, plant and equipment, net

 

4,922

 

4,356

 

Goodwill

 

7,269

 

4,085

 

Other intangible assets, net

 

2,253

 

701

 

Investments in equity-accounted companies

 

156

 

19

 

Total Fixed Assets

 

14,600

 

9,161

 

Receivables, net

 

10,773

 

9,970

 

Inventories, net

 

5,737

 

4,878

 

Prepaid expenses

 

227

 

193

 

Accounts payable, trade

 

(4,789

)

(4,555

)

Billings in excess of sales

 

(1,819

)

(1,730

)

Employee and other payables

 

(1,361

)

(1,526

)

Advances from customers

 

(1,757

)

(1,764

)

Accrued expenses

 

(1,822

)

(1,644

)

Net Working Capital

 

5,189

 

3,822

 

Accumulated depreciation of property plant and equipment

 

6,121

 

5,902

 

Accumulated amortization of intangible assets including goodwill (1)

 

1,900

 

1,689

 

Accumulated Depreciation and Amortization

 

8,021

 

7,591

 

Capital Invested

 

27,810

 

20,574

 

 

 

 

 

 

 

CROI

 

14

%

21

%

 


(1) Includes accumulated goodwill amortization up to Dec. 31, 2001. Thereafter goodwill is not amortized (under U.S. GAAP) but subject to annual testing for impairment.

 

14



 

ABB Ltd Interim Consolidated Income Statements (unaudited)

 

 

 

Year ended

 

Three months ended

 

($ in millions, except per share data in $) 

 

Dec. 31, 2011

 

Dec. 31, 2010

 

Dec. 31, 2011

 

Dec. 31, 2010

 

 

 

 

 

 

 

 

 

 

 

Sales of products

 

31,875

 

26,291

 

8,848

 

7,628

 

Sales of services

 

6,115

 

5,298

 

1,723

 

1,551

 

Total revenues

 

37,990

 

31,589

 

10,571

 

9,179

 

Cost of products

 

(22,649

)

(18,607

)

(6,441

)

(5,563

)

Cost of services

 

(3,907

)

(3,453

)

(1,137

)

(987

)

Total cost of sales

 

(26,556

)

(22,060

)

(7,578

)

(6,550

)

Gross profit

 

11,434

 

9,529

 

2,993

 

2,629

 

Selling, general and administrative expenses

 

(5,373

)

(4,615

)

(1,437

)

(1,297

)

Non-order related research and development expenses

 

(1,371

)

(1,082

)

(399

)

(320

)

Other income (expense), net

 

(23

)

(14

)

(34

)

(34

)

Earnings before interest and taxes

 

4,667

 

3,818

 

1,123

 

978

 

Interest and dividend income

 

90

 

95

 

25

 

25

 

Interest and other finance expense

 

(207

)

(173

)

(35

)

(35

)

Income from continuing operations before taxes

 

4,550

 

3,740

 

1,113

 

968

 

Provision for taxes

 

(1,244

)

(1,018

)

(247

)

(228

)

Income from continuing operations, net of tax

 

3,306

 

2,722

 

866

 

740

 

Income from discontinued operations, net of tax

 

9

 

10

 

8

 

13

 

Net income

 

3,315

 

2,732

 

874

 

753

 

Net income attributable to noncontrolling interests

 

(147

)

(171

)

(44

)

(53

)

Net income attributable to ABB

 

3,168

 

2,561

 

830

 

700

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

3,159

 

2,551

 

822

 

687

 

Net income

 

3,168

 

2,561

 

830

 

700

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

1.38

 

1.12

 

0.36

 

0.30

 

Net income

 

1.38

 

1.12

 

0.36

 

0.31

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

1.38

 

1.11

 

0.36

 

0.30

 

Net income

 

1.38

 

1.12

 

0.36

 

0.31

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding (in millions) used to compute:

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to ABB shareholders

 

2,288

 

2,287

 

2,290

 

2,285

 

Diluted earnings per share attributable to ABB shareholders

 

2,291

 

2,291

 

2,291

 

2,289

 

 

See Notes to the Interim Consolidated Financial Information

 

15


 


 

ABB Ltd Interim Consolidated Balance Sheets (unaudited)

 

($ in millions, except share data)

 

Dec. 31, 2011

 

Dec. 31, 2010

 

 

 

 

 

 

 

Cash and equivalents

 

4,819

 

5,897

 

Marketable securities and short-term investments

 

948

 

2,713

 

Receivables, net

 

10,773

 

9,970

 

Inventories, net

 

5,737

 

4,878

 

Prepaid expenses

 

227

 

193

 

Deferred taxes

 

932

 

896

 

Other current assets

 

351

 

801

 

Total current assets

 

23,787

 

25,348

 

 

 

 

 

 

 

Property, plant and equipment, net

 

4,922

 

4,356

 

Goodwill

 

7,269

 

4,085

 

Other intangible assets, net

 

2,253

 

701

 

Prepaid pension and other employee benefits

 

139

 

173

 

Investments in equity-accounted companies

 

156

 

19

 

Deferred taxes

 

318

 

846

 

Other non-current assets

 

804

 

767

 

Total assets

 

39,648

 

36,295

 

 

 

 

 

 

 

Accounts payable, trade

 

4,789

 

4,555

 

Billings in excess of sales

 

1,819

 

1,730

 

Employee and other payables

 

1,361

 

1,526

 

Short-term debt and current maturities of long-term debt

 

765

 

1,043

 

Advances from customers

 

1,757

 

1,764

 

Deferred taxes

 

305

 

357

 

Provisions for warranties

 

1,324

 

1,393

 

Provisions and other current liabilities

 

2,619

 

2,726

 

Accrued expenses

 

1,822

 

1,644

 

Total current liabilities

 

16,561

 

16,738

 

 

 

 

 

 

 

Long-term debt

 

3,231

 

1,139

 

Pension and other employee benefits

 

1,487

 

831

 

Deferred taxes

 

537

 

411

 

Other non-current liabilities

 

1,496

 

1,718

 

Total liabilities

 

23,312

 

20,837

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Capital stock and additional paid-in capital (2,314,743,264 and 2,308,782,064 issued shares at December 31, 2011 and 2010, respectively)

 

1,621

 

1,454

 

Retained earnings

 

16,988

 

15,389

 

Accumulated other comprehensive loss

 

(2,408

)

(1,517

)

Treasury stock, at cost (24,332,144 and 25,317,453 shares at December 31, 2011 and 2010, respectively)

 

(424

)

(441

)

Total ABB stockholders’ equity

 

15,777

 

14,885

 

Noncontrolling interests

 

559

 

573

 

Total stockholders’ equity