ABB returns improved performance

29 October 2004 – ABB has reversed last year’s results by reporting a steady improvement in orders and revenues earnings as well as cash flow from operations in the third quarter of 2004.

Jürgen Dormann, ABB chairman and CEO said, “We are on track to deliver a positive net income for 2004 and are confident that we will reach a group EBIT (earnings before taxes) margin of eight per cent in 2005.”

The power and automation technology group’s net income amounted to $98m in the third quarter and $188m for the first nine months of 2004, compared to losses of $283m and $388m respectively, in the same periods of 2003.

Cash flow from operating activities increased to $322m, up $205m from the same quarter last year.

The automation technologies division reported a 54 per cent increase in EBIT. The power technologies division EBIT was lower, which ABB said was due to the remaining under utilisation in the power lines business and in other parts of the systems business.