Core businesses post strong results
2004 highlights - March 2005 asbestos agreement turns net profit of $201 million into $35 million loss
- Earnings before interest and taxes (EBIT) tripled compared to 2003; EBIT margin sharply higher
- Core Power Technologies and Automation Technologies divisions post double-digit order and revenue growth
- Further divestments, including upstream oil, gas and petrochemicals business, as part of program to sell non-core activities
- Step change business improvement program cuts group’s cost base by more than $1 billion
- Total debt reduced to $5.5 billion from $7.9 billion at end of 2003
Targets for 2005* - Revenues: 4 percent compound average growth in local currencies 2002-2005
- Group EBIT margin of 7.7 percent in U.S. dollars (revised from 8 percent to reflect reclassification of remaining oil, gas and petrochemicals business to continuing operations from discontinued operations where it had no impact on revenue or EBIT)
- Divisional EBIT margins: Power Technologies 10 percent, Automation Technologies 10.7 percent
- Gearing ratio (total debt divided by total debt plus equity, including minority interest): 50 percent
* Revenue and margin targets exclude major acquisitions, divestments and business closures.
Group*
* | 2003 figures adjusted to reflect the reclassification of the remaining oil, gas, and petrochemicals business from discontinued operations to continuing operations and certain other businesses from continuing operations to discontinued operations in 2004. |
** | $201 million net income from our February 17, 2005 earnings release, reduced to a net loss of $35 million due to charge from March 2005 asbestos agreement being taken in 2004. |
Total ABB Group*
Year ended December 31 (U.S. dollar amounts in millions except per share and % data)
 | 2004 | 2003 |
Orders received | 21,689 | 19,701 |
Revenues | 20,721 | 20,427 |
Earnings before interest and taxes (EBIT) | 1,084 | 357 |
Loss from discontinuing operations | (483) | (408) |
Net loss | (35) | (779) |
Stockholders' equity | 2,824 | 2,917 |
Capital expenditure, excluding purchased intangible assets | 400 | 402 |
Research and development expenditure | 690 | 635 |
Order-related development expenditure | 727 | 886 |
EBIT margin | 5.2% | 1.7% |
Return on equity | (1.2)% | (40.5%) |
Net cash flow from operating activities | 962 | (173) |
Number of employees | 102,537 | 116,464 |
 |
Basic earnings (loss) per share |
Income (loss) from continuing operations | 0.22 | (0.30) |
Net loss | (0.02) | (0.64) |
 |
Diluted earnings (loss) per share |
Income (loss) from continuing operations | 0.22 | (0.30) |
Net loss | (0.02) | (0.64) |
* 2003 figures adjusted to reflect the reclassification of the remaining oil, gas, and petrochemicals business from discontinued operations to continuing operations and certain other businesses from continuing operations to discontinued operations in 2004.
|
|
|