6-K 1 abb_6k.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of: September 2001 ABB Ltd --------------------------------------------------- (Exact name of registrant as specified in charter) N/A ----------------------------------------------------------- (Translation of registrant's name into English) P.O. Box 8131, Affolternstrasse 44, CH-8050, Zurich, Switzerland ---------------------------------------------------------------- (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F --- --- 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 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: 1. A press release, dated September 18, 2001, regarding ABB's restated historical financial statements; and 2. A slide presentation posted on ABB's web site in connection with ABB's conference call on September 18, 2001. Press Release ABB ABB Media Relations ABB Investor Relations Thomas Schmidt Switzerland: Tel. +41 1 317 7266 Tel: +41 1 317 7354 Sweden: Tel. +46 21 32 5928 Fax: +41 1 317 7958 USA: Tel. +1 203 750 7743 media.relations@ch.abb.com investor.relations@ch.abb.com For your business editor ABB releases historical figures, increases transparency Zurich, Switzerland, September 18, 2001 - ABB, the global power and automation technology group, today released historical figures restated to reflect its customer-centric structure. ABB President and CEO Jorgen Centerman said the figures, restated from 1999, clarified the size and scope of ABB's divisions, establishing a baseline for the company's financial reporting going forward. "Restating ABB's historical financial data according to our new organization improves transparency by providing a better window on our company and the metrics we use to guide our business, and also puts our transformation in context," Centerman said. "In addition, we are disclosing a separate balance sheet for the Financial Services division. This allows better tracking of our industrial and financial activities," Centerman added. ABB initiated its transformation in January, creating an organization based on seven divisions. Four end-user divisions serve utilities, process industries, manufacturing and consumer industries, and the oil, gas and petrochemicals sectors. Two divisions serve ABB and external channels with power products and automation products. ABB's Financial Services division is unchanged. ABB's will report its results according to the new divisional organization for the first time in its third-quarter announcement on October 24. ABB (www.abb.com) is a global leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering their environmental impact. ABB has 160,000 employees in more than 100 countries. Division overviews (unaudited) Please refer to appendix for detailed listing of figures, all of which are presented as if the Company's new internal structure and transaction flow had been in place for all periods presented. The Consolidated Financial Statements for the first half 2001 under the previous structure were already published on July 24 and can be viewed on ABB's web site: www.abb.com/investorrelations EBIT excluding capital gains is shown in footnotes only if the aggregate of these capital gains is material (in any case if it is more than 10% of divisional EBIT). Utilities US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies ________________________________________________________________________________ Orders 3'062 3'411 -10% -3% Revenues 2'551 2'662 -4% 2% EBIT* 86 154 -44% -42% EBIT Margin 3.4% 5.8% * EBIT excluding capital gains in the first six months of 2000: US$ 117 million The ABB Utilities division serves electric, gas and water industries - whether state-owned or private, global or local, operating in liberalized or regulated markets - through a portfolio of capabilities, from essential products to comprehensive services and systems. The Utilities division has approximately 16,000 employees. Process Industries US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies Orders 1'900 1'997 -5% 2% Revenues 1'570 1'621 -3% 4% EBIT 71 59 20% 28% EBIT Margin 4.5% 3.6% The ABB Process Industries division serves the chemical, pharmaceutical, petroleum, gas, marine, metals, minerals, mining, cement, pulp, paper and printing industries with a variety of power and automation technology products. The division has strong domain expertise and uses its automation, power, supply chain and service portfolio to create Industrial IT solutions focused on these customers. The division also has approximately 16,000 employees. Manufacturing and Consumer Industries US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies Orders 2'465 3'052 -19% -12% Revenues 2'362 2'512 -6% 1% EBIT* 66 91 -27% -24% EBIT Margin 2.8% 3.6% * EBIT excluding capital gains in the first six months of 2000: US$ 70 million The ABB Manufacturing and Consumer Industries division sells products, solutions and services to improve customer productivity and competitiveness in areas like automotive industries, telecom, product manufacturing, electronics, airports, parcel and cargo distribution, public and commercial buildings. It also provides air handling solutions for industrial and environmental processes. The division employs approximately 32,000 people. Oil, Gas and Petrochemicals US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies Orders 1'990 1'991 0% 3% Revenues 1'548 1'212 28% 34% EBIT 88 65 35% 41% EBIT Margin 5.7% 5.4% The ABB Oil, Gas and Petrochemicals division focuses on systems, products and services for oil and gas drilling both offshore and onshore, and the development and supply of offshore production installations, refineries and petrochemical plants worldwide. The division employs approximately 13,000 people. Power Technology Products US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies Orders 2'134 2'206 -3% 2% Revenues 1'814 1'768 3% 9% EBIT 132 141 -6% -2% EBIT Margin 7.3% 8.0% The ABB Power Technology Products division covers the entire spectrum of technology for power transmission and power distribution. It includes transformers, switchgear, breakers, capacitors, cables as well as other products and technologies for high- and medium-voltage applications. All products are currently developed to fit into a common Industrial IT architecture. The increased use of Information Technology (IT), including online product configurators, enables ABB Power Technology Products to deliver within best-in-class cycle times. The division focuses on customers such as industrial, commercial, utilities and external channel partners, e.g. distributors, system integrators, contractors and OEMs (original equipment manufacturers). It has approximately 29,000 employees. Automation Technology Products US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies Orders 2'687 2'839 -5% 1% Revenues 2'572 2'544 1% 8% EBIT 219 223 -2% 5% EBIT Margin 8.5% 8.8% The ABB Automation Technology Products division provides products, systems, software and services for the automation and optimization of discrete, process and batch manufacturing operations plus related business aspects. Key technologies include measurement control, instrumentation, process analysis, drives and motors, power electronics, robots, and low-voltage products; all geared toward one common industrial IT architecture for real-time automation and information solutions across the business enterprise. These technologies are sold both through third-party channels (OEM's, system integrators, distributors) and through the ABB end-user divisions. It has approximately 43,000 employees. Financial Services US$ in millions, except Jan-Jun Jan-Jun Change Change where indicated 2001 2000 in local currencies Revenues 1'019 984 4% 9% EBIT 203 188 8% 17% The ABB Financial Services division supports its internal and external customers with innovative financial solutions in structured finance, leasing, project development and ownership, financial consulting, insurance and treasury activities. The division employs approximately 1,200 people. Important dates October 24, 2001 9 months 2001 results October 29-30, 2001 Analyst Days in Zurich October 29 Media Briefing in Zurich Conference call Details of today's conference call are as follows: Time: Conference call begins at 4:00 p.m. CET (Central European Time) 3:00 p.m. UK time 10:00 a.m. EST (Eastern Standard Time) Dial-in: +41 91 610 4111 (if calling from Europe) +1 412 858 4600 (if calling from the US) Please ask to be connected to the conference call Replay: +41 91 610 2500 access code: 143 (if calling from Europe) +1 412 858 1440 access code: 143 (if calling from the US) The replay will be available for 72 hours commencing 2 hours after the conference Literature: Presentation material will be available in .pdf format on September 18 at 12:00 a.m. CET on ABB's web site: www.abb.com/investorrelations Appendix Division data (unaudited) Presented according to the new organizational structure of ABB Ltd
Orders received ----------------------------------------------------------------------------------------- 2001 | 2000 | 1999 US $ in millions Jan-Jun Jan-Mar | Jan-Dec Jan-Sep Jan-Jun Jan-Mar | Jan-Dec ----------------------------------------------------------------------------------------- Utilities 3,062 1,700 | 6,235 4,710 3,411 1,686 | 5,981 Process Industries 1,900 1,055 | 3,497 2,818 1,997 990 | 3,525 Manufacturing and Consumer Industries 2,465 1,337 | 5,485 4,283 3,052 1,547 | 6,046 Oil, Gas and Petrochemicals 1,990 961 | 3,923 3,197 1,991 1,117 | 3,030 Power Technology Products 2,134 1,105 | 4,071 3,059 2,206 1,027 | 3,841 Automation Technology Products 2,687 1,419 | 5,421 4,184 2,839 1,457 | 5,622 Financial Services 1,019 479 | 1,966 1,318 984 453 | 1,687 Corporate / Other 1) -2,609 -1,270 | -5,158 -4,076 -2,833 -1,136 | -5,099 ----------------------------------------------------------------------------------------- Total 12,648 6,786 | 25,440 19,493 13,647 7,141 | 24,633 =========================================================================================
Revenues ----------------------------------------------------------------------------------------- 2001 | 2000 | 1999 US $ in millions Jan-Jun Jan-Mar | Jan-Dec Jan-Sep Jan-Jun Jan-Mar | Jan-Dec ----------------------------------------------------------------------------------------- Utilities 2,551 1,196 | 5,473 3,898 2,662 1,288 | 5,875 Process Industries 1,570 775 | 3,339 2,422 1,621 794 | 3,485 Manufacturing and Consumer Industries 2,362 1,163 | 5,225 3,665 2,512 1,184 | 5,697 Oil, Gas and Petrochemicals 1,548 769 | 2,796 1,829 1,212 529 | 3,086 Power Technology Products 1,814 855 | 3,662 2,626 1,768 806 | 3,862 Automation Technology Products 2,572 1,276 | 5,175 3,796 2,544 1,242 | 5,550 Financial Services 1,019 479 | 1,966 1,318 984 453 | 1,687 Corporate / Other 1) -2,337 -1,133 | -4,669 -3,337 -2,235 -1,037 | -4,886 ----------------------------------------------------------------------------------------- Total 11,099 5,380 | 22,967 16,217 11,068 5,259 | 24,356 =========================================================================================
1) Corporate/Other includes Corporate/holdings, Group Processes, New Ventures, Corporate R&D, service business not specific to other divisions and elimination of internal transactions Division data (unaudited) Presented according to the new organizational structure of ABB Ltd
EBIT ----------------------------------------------------------------------------------------- 2001 | 2000 | 1999 US $ in millions Jan-Jun Jan-Mar | Jan-Dec Jan-Sep Jan-Jun Jan-Mar | Jan-Dec ----------------------------------------------------------------------------------------- Utilities 2) 86 40 | 250 196 154 46 | 182 Process Industries 71 35 | 88 75 59 30 | 123 Manufacturing and Consumer Industries 3) 66 37 | 205 137 91 40 | 147 Oil, Gas and Petrochemicals 88 41 | 157 101 65 30 | 165 Power Technology Products 4) 132 64 | 244 170 141 54 | 282 Automation Technology Products 219 112 | 464 337 223 101 | 392 Financial Services 203 84 | 349 250 188 84 | 337 Corporate / Other 1) -239 -79 | -372 -228 -130 -70 | -506 ----------------------------------------------------------------------------------------- Total 5) 626 334 | 1,385 1,038 791 315 | 1,122 =========================================================================================
1) Corporate/Other includes Corporate/holdings, Group Processes, New Ventures, Corporate R&D, service business not specific to other divisions and elimination of internal transactions Aggregated capital gains on divisional level are shown only if they are material, in any case if they are above 10% of divisional EBIT 2) Contains material capital gains of US$ 37 million in the first 6 months of 2000, US$ 46 million in the first 9 months of 2000 and US$ 54 million for the full year 2000 3) Contains material capital gains of US$ 13 million in the first 3 months of 2000, US$ 21 million in the first 6 months of 2000, US$ 21 million in the first 9 months 2000 and US$ 41 million for the full year 2000 4) Contains material capital gains of US$ 30 million for the full year 1999. 5) Total capital gains amounted to US$ 180 million in 1999. Total capital gains in 2000 were US$ 24 million for the first 3 months, US$ 184 million in the first 6 months, US$ 340 million in the first 9 months and US$ 447 million for the full year. In the first 3 months of 2001 total capital gains were US$ 2 million and in the first 6 months of 2001 they amounted to US$ -6 million. Division data (unaudited) Presented according to the new organizational structure of ABB Ltd
Depreciation & amortization ------------------------------------------------------------------------ 2001 | 2000 US $ in millions Jan-Jun Jan-Mar | Jan-Dec Jan-Sep ------------------------------------------------------------------------- Utilities 36 18 | 75 50 Process Industries 35 17 | 73 51 Manufacturing and Consumer Industries 25 12 | 59 41 Oil, Gas and Petrochemicals 37 17 | 69 45 Power Technology Products 58 29 | 123 92 Automation Technology Products 115 61 | 264 162 Financial Services 12 6 | 23 17 Corporate / Other 1) 66 30 | 150 117 ------------------------------------------------------------------------ Total 384 190 | 836 575 ========================================================================
Depreciation & amortization ------------------------------------------- 2000 | 1999 US $ in millions Jan-Jun Jan-Mar | Jan-Dec ------------------------------------------- Utilities 34 17 | 68 Process Industries 33 17 | 59 Manufacturing and Consumer Industries 28 14 | 66 Oil, Gas and Petrochemicals 29 15 | 55 Power Technology Products 62 31 | 121 Automation Technology Products 121 53 | 279 Financial Services 12 7 | 17 Corporate / Other 1) 58 45 | 130 ------------------------------------------- Total 377 199 | 795 ===========================================
Capital expenditures Net operating assets 2) ----------------------------------- ------------------------------ 2000 1999 2000 1999 US $ in millions, except for employees Jan-Dec Jan-Dec Dec 31 Dec 31 ----------------------------------- ------------------------------ Utilities 26 42 1,018 912 Process Industries 27 40 839 795 Manufacturing and Consumer Industries 33 43 411 634 Oil, Gas and Petrochemicals 30 48 893 554 Power Technology Products 105 162 1,328 1,483 Automation Technology Products 139 190 3,215 3,388 Financial Services 25 47 9,098 7,750 Corporate / Other 1) 100 94 -2,170 -2,372 ----------------------------------- ------------------------------ Total 485 666 14,632 13,144 =================================== ==============================
Number of employees ----------------------------------- 2001 2000 US $ in millions, except for employees June 30 Dec 31 ----------------------------------- Utilities 16,273 15,826 Process Industries 15,862 15,997 Manufacturing and Consumer Industries 32,058 33,449 Oil, Gas and Petrochemicals 12,628 11,549 Power Technology Products 28,709 27,785 Automation Technology Products 42,693 41,332 Financial Services 1,209 1,125 Corporate / Other 1) 14,406 13,755 ----------------------------------- Total 163,838 160,818 =================================== 1) Corporate/Other includes Corporate/holdings, Group Processes, New Ventures, Corporate R&D, service business not specific to other divisions and elimination of internal transactions 2) Net operating assets is calculated based upon total assets (excluding cash and equivalents, marketable securities, current loans receivable, taxes and deferred charges) less current liabilities (excluding borrowings, taxes, provisions and pension related liabilities) Balance sheets of ABB Ltd Consolidated, ABB Group and Financial Services (unaudited) In the balance sheet data appearing on this page, "ABB Ltd Consolidated" means the accounts of ABB Ltd and all its subsidiaries presented on the basis of US GAAP, with all significant intercompany balances eliminated in consolidation.The balance sheet data for "Financial Services" and "ABB Group" is reported on the same basis as management uses to evaluate segment performance which includes the following adjustments: - "Financial Services" represents the accounts of all subsidiaries in ABB's Financial Services division, with net intercompany balances and certain capital contributions received from other ABB subsidiaries presented on a one-line basis. - "ABB Group" represents the accounts of ABB Ltd and all its subsidiaries other than those in ABB's Financial Services division, with net intercompany balances and ABB's investment in its Financial Services division presented on a one-line basis. For the purposes of this presentation, ABB's investment in its Financial Services division is accounted for under the equity method of accounting.
----------------------------- ---------------------------- ABB Ltd Consolidated ABB Group1) US $ in millions Jun 30, 2001 Dec 31, 2000 Jun 30, 2001 Dec 31, 2000 ----------------------------- ---------------------------- Cash, cash equivalents and marketable securities 5,506 5,606 1,368 1,285 Receivables, net 8,473 8,328 6,356 6,652 Inventories, net 3,456 3,192 3,456 3,192 Prepaid expenses and other 2,578 1,585 1,198 1,067 ----------------------------- ---------------------------- Total current assets 20,013 18,711 12,378 12,196 ============================= ============================ Financing receivables 4,300 3,875 486 541 Property, plant and equipment, net 2,975 3,243 2,888 3,177 Goodwill and other intangible assets, net 3,391 3,155 3,312 3,067 Investments and other 2,051 1,978 1,437 1,350 Net intercompany balances - - - - ----------------------------- ---------------------------- Total assets 32,730 30,962 20,501 20,331 ============================= ============================ Accounts payables, trade 3,584 3,375 3,558 3,347 Accounts payables, other 2,326 2,363 1,435 1,512 Short term borrowings 6,388 3,587 336 397 Accrued liabilities and other 6,957 6,127 3,982 4,303 ----------------------------- ---------------------------- Total current liabilities 19,255 15,452 9,311 9,559 ============================= ============================ Long term borrowings 4,416 3,776 668 509 Pensions and other related benefits 1,640 1,790 1,634 1,783 Deferred taxes 1,301 1,528 591 694 Other liabilities 2,615 2,924 2,145 2,350 Net intercompany balances - - 2,749 44 ----------------------------- ---------------------------- Total liabilities 29,227 25,470 17,098 14,939 ============================= ============================ Minority interest 290 321 190 221 Total stockholders' equity 3,213 5,171 3,213 5,171 ----------------------------- ---------------------------- Total liabilities and stockholders' equity 32,730 30,962 20,501 20,331 ============================= ============================
------------------------------ Financial Services US $ in millions Jun 30, 2001 Dec 31, 2000 ------------------------------ Cash, cash equivalents and marketable securities 4,138 4,321 Receivables, net 2,117 1,676 Inventories, net - - Prepaid expenses and other 1,380 518 ------------------------------ Total current assets 7,635 6,515 ============================== Financing receivables 3,814 3,334 Property, plant and equipment, net 87 66 Goodwill and other intangible assets, net 79 88 Investments and other 614 628 Net intercompany balances 4,628 2,105 ------------------------------ Total assets 16,857 12,736 ============================== Accounts payables, trade 26 28 Accounts payables, other 891 851 Short term borrowings 6,052 3,190 Accrued liabilities and other 2,975 1,824 ------------------------------ Total current liabilities 9,944 5,893 ============================== Long term borrowings 3,748 3,267 Pensions and other related benefits 6 7 Deferred taxes 710 834 Other liabilities 470 574 Net intercompany balances - - ------------------------------ Total liabilities 14,878 10,575 ============================== Minority interest 100 100 Total stockholders' equity 1,879 2,061 ------------------------------ Total liabilities and stockholders' equity 16,857 12,736 ==============================
1) ABB Industrial operations/holdings with equity accounting of participation in Financial Services. Analysts' Telephone Conference September 18, 2001 Jorgen Centerman ABB President and CEO Safe Harbor Statement -------------------------------------------------------------------------------- This presentation includes forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for ABB Ltd and ABB Ltd's lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are major markets for ABB's businesses, market acceptance of new products and services, changes in governmental regulations, interest rates, and fluctuation in currency exchange rates. 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. Increased transparency --------------------------------------------------------------------- o Comparable divisional figures restated from 1999 o More detailed financial and non-financial information -- Separate balance sheet for Financial Services and industrial divisions -- Material capital gains per division -- At Q3: customer penetration, customer accounts, progress in Industrial IT o More transparency on debt Our disclosure commitment ---------------------------------------------------------------------
Reporting level Quarterly Annual Group Other Income: capital gains, restructuring, income from X** equity-accounted companies and licenses Divisions Orders received X Revenues X EBIT X Material capital gains* X** Depreciation/amortization X Capital expenditure X Net operating assets X No. of employees X** Financial Services Separate balance sheet X** Business Areas Orders received X** *defined as 10% or more of EBIT ** New disclosure
Aim with the transformation ----------------------------------------------------------------------- More business and profit per customer Leaner organization Leaner organization ------------------------------------------------------------------------- Example: Traction Transformers Production Major achievements o Throughput time from 6 months to less than 8 weeks o Standardization with 4 modular basic designs covering -- 65 different requirements -- >80% of the needs in world market Total cost reduction 25% From 4 mixed sites to 1 focused factory [Map of Europe reflecting moves from Sweden, Germany and Italy to Switzerland.] Channel partner -------------------------------------------------------------------------------- Example: ABB and Bechtel o A multi-project-acquisition agreement (MPA) for ABB's generator circuit breakers (GCB) -- high-tech breaker that protects generator and power transformer in a power plant -- agreement is non-exclusive o Mutual benefits: price consistency, process improvement which lowers overall costs, fast delivery o Bechtel adapted its worldwide design for power plants to generator circuit breakers Under the agreement Bechtel already ordered approx. 45 GCB/15 MUSD Customer penetration - first indicators -------------------------------------------------------------------------- Reviewed 50 of our large customers o First 6 months overall order volume improved by around 150 USD o Penetration rate increased by more than 10% ABB A global leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering their environmental impact SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ABB LTD Date: September 18, 2001 By: /s/ Francois Champagne ----------------------------------- Name: Francois Champagne Title: Group Assistant Vice President By: /s/ Hans Enhorning ----------------------------------- Name: Hans Enhorning Title: Group Vice President