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 October 2011

 

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 October 27, 2011.

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, including by reference in the Registration Statements on Form S-8 (Registration No. 333-129271 and Registration No. 333-171971).

 

2



 

Press Release

 

ABB shows resilient Q3 performance

 

·                  Orders up 12%(1) (6% organic(2)); 11% revenue growth (4% organic)

·                  Operational EBITDA(3) margin increases to 16.7% from 16.3% in Q3 2010

·                  Cost savings in the quarter at approximately $270 million

·                  Order backlog rises 8% versus the same quarter in 2010

 

Zurich, Switzerland, Oct, 27 2011 — ABB reported a 24-percent increase in operational EBITDA in the third quarter on double-digit revenue growth compared with the third quarter of last year.

 

In addition to higher revenues, the increase reflects successful cost reductions that continued to more than offset price pressure. The recent Baldor acquisition also made a significant contribution to both revenues and earnings.

 

Customer investments to increase operational efficiency translated into higher orders for products such as electrical motors and robots, while capacity expansion and the need for service drove higher orders in the oil and gas sector. The need to strengthen power distribution networks, driven in part by industrial growth in emerging markets, as well as the integration of renewable energy supplies into power grids, lifted orders in the power businesses.

 

“This was a solid quarter where we continued to execute well,” said Joe Hogan, ABB’s CEO. “Our cost savings efforts again more than offset price pressure in power and we continued to build the order backlog, which will support growth in the coming quarters. Growth in our early-cycle businesses slowed this quarter, partly on comparisons to the very strong rates we saw a year ago as well as weaker demand in some industry sectors.

 

“Looking ahead, uncertainty around global growth makes it difficult to forecast. Based on recent developments and in line with slowing economic growth, however, we expect order growth in most of our early-cycle businesses to remain near current levels until confidence in the macroeconomic outlook improves. Meanwhile, the longer-term outlook remains positive. The world needs to get more from its power and industrial resources while reducing environmental impacts. ABB is in a great position, with our leading technology, broad global presence and strong balance sheet, to help our customers meet that challenge.”

 

2011 Q3 key figures

 

 

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Orders

 

9’826

 

8’197

 

20

%

12

%

Order backlog (end Sep)

 

28’492

 

26’593

 

7

%

8

%

Revenues

 

9’337

 

7’903

 

18

%

11

%

EBIT

 

1’194

 

1’156

 

3

%

 

 

as % of revenues

 

12.8

%

14.6

%

 

 

 

 

Operational EBITDA(3)

 

1’580

 

1’274

 

24

%

 

 

as % of operational revenues(3)

 

16.7

%

16.3

%

 

 

 

 

Net income

 

790

 

774

 

2

%

 

 

Basic net income per share ($)

 

0.34

 

0.34

 

0

%

 

 

Cash flow from operating activities

 

811

 

1’362

 

 

 

 

 

 


(1)  Management discussion of orders and revenues focuses on local currency changes. US dollar changes are shown in the tables.

(2)  Organic changes exclude the acquisition of Baldor.

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

 

3



 

Summary of Q3 2011 results

 

Orders received and revenues

 

Demand for ABB products that boost energy efficiency, industrial productivity and power reliability continued to grow in the third quarter, resulting in higher orders received in all divisions compared to the same quarter in 2010.

 

The Discrete Automation and Motion division recorded the strongest growth, up more than 50 percent in local currencies on strong orders from U.S.-based Baldor—acquired in the first quarter of 2011—and double-digit growth in the robotics and power electronics businesses. On an organic basis (excluding Baldor), orders in Discrete Automation and Motion increased 15 percent. For the ABB Group, organic order growth amounted to 6 percent.

 

Orders were slightly higher in Low Voltage Products, mainly on increased demand for low-voltage systems to improve electrical efficiency in industry. The pace of order growth in Low Voltage Products and in Discrete Automation and Motion excluding Baldor slowed versus the very strong third quarter in 2010 and was also below the growth rates in the second quarter of 2011. This trend partly reflects the more challenging year-over-year comparison as well as weaker demand for some standard industrial products. The Process Automation division saw orders up 5 percent, mainly on continuing favorable demand from the oil and gas industry.

 

Orders rose 6 percent in Power Products and were stable to higher in all businesses. Continuing investments in renewable energy sources fuelled an 9-percent order increase in the Power Systems division. In August, ABB won its largest-ever power transmission order, worth around $1 billion, to supply a power link connecting offshore North Sea wind farms to the German mainland grid.

 

Orders grew most in the Americas, mainly reflecting the acquisition of Baldor, but were also up double-digits on an organic basis. Orders were flat in Europe as increases in eastern Europe and Germany were offset by slowing markets in southern Europe, Switzerland and Sweden. In Asia, growth was led by double-digit increases in India, while orders in China fell 5 percent.

 

Base orders (below $15 million) increased 11 percent (3 percent organic) and were up in all divisions except Power Systems, where they were flat. Base orders in Power Products increased for the fourth consecutive quarter. Large orders (above $15 million) increased 17 percent in the quarter and represented 22 percent of total orders, up from 20 percent in the year-earlier period. Service orders increased 12 percent.

 

The order backlog at the end of September reached $28.5 billion, a local-currency increase of 8 percent compared with the end of the third quarter in 2010, and 1 percent higher than at the end of the second quarter in 2011.

 

Revenues continued growing and were higher in all divisions except Process Automation, where they were flat. The return to revenue growth reported by Power Products in the second quarter of 2011 was sustained in the third quarter. Excluding the Baldor acquisition, Group revenues rose by 4 percent. Service revenues grew 10 percent and represented 16 percent of the Group’s total revenues.

 

4



 

Earnings and net income

 

EBIT in the third quarter of 2011 amounted to $1.2 billion, a 3-percent increase compared to the same quarter a year earlier. The mark-to-market treatment of derivative transactions reduced EBIT by approximately $100 million in the quarter, compared to a positive impact of $83 million in the third quarter 2010.

 

As part of the company’s previously-announced $1-billion cost savings initiative for 2011, savings of approximately $270 million were achieved in the quarter, of which about 60 percent were derived from optimized sourcing. For the first nine months of 2011, savings amounted to approximately $750 million. Costs associated with the program in the third quarter were approximately $30 million, bringing the total cost for the first nine months of the year to approximately $55 million.

 

Operational EBITDA in the third quarter of 2011 amounted to $1.6 billion, an increase of 24 percent over the year-earlier period. The increase in operational EBITDA and operational EBITDA margin compared to the year-earlier period mainly reflects the contribution of more than $500 million of revenues and approximately $110 million of operational EBITDA from the Baldor acquisition, as well as the return to profitability in the cables business. Improved profitability in the Power Products division along with strong earnings in the robotics business further supported the operational EBITDA margin, which increased in all divisions compared to the second quarter of 2011.

 

Net income for the quarter grew in line with EBIT and was 2 percent higher at $790 million. Basic earnings per share amounted to $0.34, the same as in the year-earlier period.

 

Balance sheet and cash flow

 

Net cash at the end of the third quarter was approximately $1 billion, compared with $1.2 billion at the end of the previous quarter.

 

Short-term debt and cash increased through the issue of approximately $1 billion of commercial paper in the third quarter.

 

ABB launched two Swiss franc-denominated bonds during the third quarter, one of CHF500 million with a 1.25-percent coupon maturing in 2016 and the second of CHF350 million with a 2.25-percent coupon maturing in 2021. As the bond issues were settled in October, they had no impact on the third-quarter consolidated balance sheet or statements of cash flows.

 

An increase in net working capital, mainly higher receivables and inventories, contributed to the decline in cash from operating activities compared to the same quarter of 2010.

 

Acquisitions

 

During the third quarter, ABB completed the previously-announced acquisitions of Brisbane, Australia-based software company Mincom—a provider of enterprise asset management software and services—as well as Sweden-based pulp and paper systems and equipment supplier Lorentzen & Wettre. The acquisitions had no material impact on ABB’s third-quarter results or financial position. The acquisition of Switzerland-based specialty transformer manufacturer Trasfor Group was completed in October 2011.

 

5



 

Outlook

 

Macroeconomic concerns, particularly around public debt and the availability of capital in Europe, continue to weigh on the global business environment. This uncertain environment makes short-term forecasting more challenging.

 

Over the long term, ABB sees no change to the positive outlook in its major end markets. Utility spending on power transmission to integrate renewable energy into existing grids and interconnect power grids continues to gain momentum. High oil prices are expected to further increase the need for energy-efficient power and automation technologies. While commodity prices have fallen recently, growing demand from the emerging markets is expected to drive them higher over the long term. ABB expects that trend to drive customer capital expenditure, as well as spending on efficiency and productivity improvements, including service.

 

Emerging markets will remain the principal drivers of growth and demand in the mature economies across all of ABB’s portfolio is also expected to continue to grow.

 

The near-term view is mixed. Based on recent developments and in line with slowing economic growth, demand is softening in some early-cycle sectors such as construction and general industry, while industrial demand for robotics solutions remains robust. Early-cycle sales typically account for about 20 percent of ABB’s revenues. Demand has also weakened for products used in renewable power generation. ABB’s mid- to later-cycle markets depend more on customer capital spending than short-term GDP growth. Current uncertainty around the economic outlook over the next several months may prolong this investment cycle.

 

Against this background, management expects order growth in most of its early-cycle businesses to remain near current levels until confidence in the macroeconomic outlook improves. The focus on flexibility and steady productivity improvements will remain a key priority. At the same time, ABB will continue to tap profitable growth opportunities, both organic and inorganic, based on its leading technology, broad global presence and strong balance sheet.

 

Divisional performance Q3 2011

 

Power Products

 

 

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Orders

 

2’660

 

2’364

 

13

%

6

%

Order backlog (end Sep)

 

8’431

 

8’259

 

2

%

3

%

Revenues

 

2’676

 

2’439

 

10

%

3

%

EBIT

 

356

 

406

 

-12

%

 

 

as % of revenues

 

13.3

%

16.6

%

 

 

 

 

Operational EBITDA(1)

 

464

 

411

 

13

%

 

 

as % of operational revenues

 

17.2

%

17.0

%

 

 

 

 

Cash flow from operating activities

 

229

 

467

 

 

 

 

 

 


(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions and unrealized foreign exchange movements on receivables/payables—see reconciliation of non-GAAP measures in Appendix I

 

The orders increase in the quarter was driven primarily by continued strength in the industrial and power distribution sectors. Demand for later-cycle transmission products is still to recover.

 

Regionally, orders increased in the Americas, mainly as a result of large orders in Canada and steady demand in the U.S. Orders in Europe and Asia also grew.

 

6



 

Revenue growth in the quarter was spread across all businesses, largely reflecting increases in the power distribution-related business. Service revenues grew faster than total revenues.

 

Operational EBITDA margin increased slightly on higher volumes, business mix and cost savings that offset lower prices on power transmission orders being executed from the backlog.

 

Power Systems

 

 

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Orders

 

2’557

 

2’158

 

18

%

9

%

Order backlog (end Sep)

 

11’199

 

10’446

 

7

%

9

%

Revenues

 

1’831

 

1’679

 

9

%

2

%

EBIT

 

104

 

101

 

3

%

 

 

as % of revenues

 

5.7

%

6.0

%

 

 

 

 

Operational EBITDA(1)

 

184

 

114

 

61

%

 

 

as % of operational revenues

 

9.7

%

7.0

%

 

 

 

 

Cash flow from operating activities

 

(81

)

33

 

 

 

 

 

 


(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions and unrealized foreign exchange movements on receivables/payables—see reconciliation of non-GAAP measures in Appendix I

 

Orders increased in the quarter as customers continued to invest in grid upgrades and the integration of renewable energy sources. Demand for power solutions to support industrial growth also contributed to the order growth, along with the focus on power distribution networks. Large orders increased by more than 15 percent in local currencies, reflecting the largest-ever power transmission order for a $1-billion offshore wind power connection in Germany.

 

Orders grew significantly in the Americas, led by large orders in Canada and the U.S. and higher base orders in Brazil. Growth in large orders also drove an increase in the Middle East and Africa, while orders in Asia rose, mainly driven by India. Orders in Europe were lower, resulting from a decrease in base orders.

 

Revenues grew in the quarter but at a slower pace than in recent periods, primarily due to the timing of order execution out of the backlog. The order backlog amounted to more than $11 billion at the end of the quarter.

 

Operational EBITDA increased significantly, mainly the result of higher revenues and the return to profitability in the cables business.

 

Discrete Automation and Motion

 

 

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Orders

 

2’377

 

1’473

 

61

%

51

%

Order backlog (end Sep)

 

4’373

 

3’486

 

25

%

25

%

Revenues

 

2’313

 

1’460

 

58

%

49

%

EBIT

 

382

 

270

 

41

%

 

 

as % of revenues

 

16.5

%

18.5

%

 

 

 

 

Operational EBITDA(1)

 

456

 

286

 

59

%

 

 

as % of operational revenues

 

19.6

%

19.7

%

 

 

 

 

Cash flow from operating activities

 

269

 

156

 

 

 

 

 

 


(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges, the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payables and non-recurring charges related to the Baldor acquisition—see reconciliation of non-GAAP measures in Appendix I

 

7



 

The strong order growth in the quarter reflected continued demand for energy efficient automation solutions across all regions. The acquisition of Baldor in the first quarter of 2011 also contributed significantly to the growth. Excluding Baldor, orders rose 15 percent in local currencies.

 

Orders grew at a double-digit pace in Europe, Asia and the Americas, led primarily by improving demand for robotics in the automotive and general industry sectors, as well as for power electronics and medium-voltage drives in industries such as mining and oil and gas. The overall pace of order growth was more moderate compared to recent quarters as demand for products driven by early-cycle industries was flat versus the same period in 2010.

 

The pace of revenue growth reflected mainly the execution of the strong order backlog, which continued to increase.

 

Operational EBITDA increased significantly on the impact of higher revenues and the contribution from Baldor. The operational EBITDA margin remained steady compared to the third quarter of 2010 on a combination of further margin improvements in robotics and solid execution.

 

Low Voltage Products

 

 

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Orders

 

1’334

 

1’219

 

9

%

2

%

Order backlog (end Sep)

 

1’048

 

970

 

8

%

9

%

Revenues

 

1’364

 

1’187

 

15

%

7

%

EBIT

 

226

 

241

 

-6

%

 

 

as % of revenues

 

16.6

%

20.3

%

 

 

 

 

Operational EBITDA(1)

 

273

 

268

 

2

%

 

 

as % of operational revenues

 

19.9

%

22.7

%

 

 

 

 

Cash flow from operating activities

 

155

 

240

 

 

 

 

 

 


(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions and unrealized foreign exchange movements on receivables/payables—see reconciliation of non-GAAP measures in Appendix I

 

Order growth slowed in the third quarter on a combination of more difficult comparisons with the strong growth recorded in 2010, slowing demand in most early-cycle industries, and ongoing cutbacks in renewable investments compared to the same quarter a year ago. Growth rates reached high single digits in Asia and the Americas, were flat in the Middle East and Africa and slightly lower in Europe.

 

Revenues grew faster than orders, reflecting the execution of the strong order backlog in low-voltage systems along with the slower pace of product order growth.

 

Higher raw material costs and investments in sales as well as research and development were the main drivers of a lower operational EBITDA margin compared to the third quarter of 2010. The shift in revenue mix towards a higher share of low-voltage system revenues also contributed to the decline. The operational EBITDA margin increased versus the second quarter of 2011 as price increases announced earlier in the year began to have a positive impact.

 

8



 

Process Automation

 

 

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Orders

 

1’899

 

1’679

 

13

%

5

%

Order backlog (end Sep)

 

6’334

 

5’853

 

8

%

9

%

Revenues

 

1’988

 

1’859

 

7

%

-1

%

EBIT

 

246

 

214

 

15

%

 

 

as % of revenues

 

12.4

%

11.5

%

 

 

 

 

Operational EBITDA(1)

 

261

 

224

 

17

%

 

 

as % of operational revenues

 

13.0

%

12.2

%

 

 

 

 

Cash flow from operating activities

 

189

 

236

 

 

 

 

 

 


(1) Earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges and the mark-to-market treatment of hedging transactions and unrealized foreign exchange movements on receivables/payables—see reconciliation of non-GAAP measures in Appendix I

 

Order growth in the quarter was driven primarily by capital spending in the oil and gas and related marine sectors. Lifecycle service orders grew at a double-digit pace, driven by demand from the oil and gas, minerals, pulp and paper and marine sectors. Product orders—led by measurement products—grew faster than total orders.

 

Regionally, orders in Europe and the Americas were higher, mainly on demand from the oil and gas sector. Asia orders were lower as growth in the marine sector in South Korea was more than offset by lower orders in China and India compared to the strong third quarter in 2010.

 

Revenues were flat in the quarter compared to last year, as lower sales in the marine business were compensated by higher revenues in metals and pulp and paper.

 

Operational EBITDA and operational EBITDA margin increased, mainly reflecting a higher share of product and service revenues out of total revenues, and a lower share of system revenues, compared to the same quarter a year ago.

 

9



 

More information

 

The 2011 Q3 results press release is available from Oct. 27, 2011, 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 third-quarter 2011 results will be available at 07:00 am today at www.youtube.com/abb.

 

ABB will host a media conference call starting at 10:00 a.m. Central European Time (CET). U.K. callers should dial +44 203 059 58 62. From Sweden, +46 8 5051 00 31, and from the rest of Europe, +41 91 610 56 00. Lines will be open 15 minutes before the start of the conference. Audio playback of the call will start one hour after the call ends and will be available for 24 hours: Playback numbers: +44 20 7108 6233 (U.K.), +41 91 612 4330 (rest of Europe) or +1 866 416 2558 (U.S./Canada). The code is 17471, followed by the # key. The recorded session will also be available as a podcast one hour after the end of the conference call and can be downloaded from www.abb.com/news.

 

A conference call for analysts and investors is scheduled to begin today at 3:00 p.m. CET (2:00 p.m. in the UK, 9:00 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 2011-2012

 

 

ABB Capital Markets Day

 

November 4, 2011

Fourth-quarter and full-year 2011 results

 

February 16, 2012

Annual Report 2011

 

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 130,000 people.

 

Zurich, October 27, 2011

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:

Thomas Schmidt, Antonio Ligi

(Zurich, Switzerland)

Tel:  +41 43 317 6568

Fax: +41 43 317 7958

media.relations@ch.abb.com

Investor Relations:

Switzerland: Tel. +41 43 317 7111

USA: Tel. +1 203 750 7743

investor.relations@ch.abb.com

ABB Ltd

Affolternstrasse 44

CH-8050 Zurich, Switzerland

 

 

10



 

ABB Q3 and 9 months (9M) 2011 key figures

 

 

 

 

 

 

 

Change

 

 

 

 

 

Change

 

$ millions unless otherwise indicated

 

Q3 11

 

Q3 10

 

US$

 

Local

 

9M 11

 

9M 10

 

US$

 

Local

 

Orders

Group

 

9’826

 

8’197

 

20

%

12

%

30’050

 

23’929

 

26

%

18

%

 

Power Products

 

2’660

 

2’364

 

13

%

6

%

8’330

 

7’245

 

15

%

8

%

 

Power Systems

 

2’557

 

2’158

 

18

%

9

%

6’148

 

5’270

 

17

%

8

%

 

Discrete Automation & Motion

 

2’377

 

1’473

 

61

%

51

%

7’336

 

4’357

 

68

%

59

%

 

Low Voltage Products

 

1’334

 

1’219

 

9

%

2

%

4’160

 

3’544

 

17

%

11

%

 

Process Automation

 

1’899

 

1’679

 

13

%

5

%

6’845

 

5’619

 

22

%

14

%

 

Corporate and other (inter-division eliminations)

 

(1’001

)

(696

)

 

 

 

 

(2’769

)

(2’106

)

 

 

 

 

Revenues

Group

 

9’337

 

7’903

 

18

%

11

%

27’419

 

22’410

 

22

%

15

%

 

Power Products

 

2’676

 

2’439

 

10

%

3

%

7’786

 

7’286

 

7

%

0

%

 

Power Systems

 

1’831

 

1’679

 

9

%

2

%

5’689

 

4’698

 

21

%

13

%

 

Discrete Automation & Motion

 

2’313

 

1’460

 

58

%

49

%

6’441

 

3’960

 

63

%

54

%

 

Low Voltage Products

 

1’364

 

1’187

 

15

%

7

%

3’956

 

3’300

 

20

%

13

%

 

Process Automation

 

1’988

 

1’859

 

7

%

-1

%

5’983

 

5’331

 

12

%

4

%

 

Corporate and other (inter-division eliminations)

 

(835

)

(721

)

 

 

 

 

(2’436

)

(2’165

)

 

 

 

 

EBIT

Group

 

1’194

 

1’156

 

3

%

 

 

3’544

 

2’840

 

25

%

 

 

 

Power Products

 

356

 

406

 

-12

%

 

 

1’123

 

1’182

 

-5

%

 

 

 

Power Systems

 

104

 

101

 

3

%

 

 

403

 

111

 

263

%

 

 

 

Discrete Automation & Motion

 

382

 

270

 

41

%

 

 

956

 

631

 

52

%

 

 

 

Low Voltage Products

 

226

 

241

 

-6

%

 

 

695

 

588

 

18

%

 

 

 

Process Automation

 

246

 

214

 

15

%

 

 

720

 

561

 

28

%

 

 

 

Corporate and other (inter-division eliminations)

 

(120

)

(76

)

 

 

 

 

(353

)

(233

)

 

 

 

 

EBIT %

Group

 

12.8

%

14.6

%

 

 

 

 

12.9

%

12.7

%

 

 

 

 

 

Power Products

 

13.3

%

16.6

%

 

 

 

 

14.4

%

16.2

%

 

 

 

 

 

Power Systems

 

5.7

%

6.0

%

 

 

 

 

7.1

%

2.4

%

 

 

 

 

 

Discrete Automation & Motion

 

16.5

%

18.5

%

 

 

 

 

14.8

%

15.9

%

 

 

 

 

 

Low Voltage Products

 

16.6

%

20.3

%

 

 

 

 

17.6

%

17.8

%

 

 

 

 

 

Process Automation

 

12.4

%

11.5

%

 

 

 

 

12.0

%

10.5

%

 

 

 

 

Operational EBITDA*

Group

 

1’580

 

1’274

 

24

%

 

 

4’446

 

3’500

 

27

%

 

 

 

Power Products

 

464

 

411

 

13

%

 

 

1’322

 

1’334

 

-1

%

 

 

 

Power Systems

 

184

 

114

 

61

%

 

 

505

 

235

 

115

%

 

 

 

Discrete Automation & Motion

 

456

 

286

 

59

%

 

 

1’253

 

725

 

73

%

 

 

 

Low Voltage Products

 

273

 

268

 

2

%

 

 

803

 

674

 

19

%

 

 

 

Process Automation

 

261

 

224

 

17

%

 

 

756

 

632

 

20

%

 

 

Operational EBITDA %

Group

 

16.7

%

16.3

%

 

 

 

 

16.2

%

15.6

%

 

 

 

 

 

Power Products

 

17.2

%

17.0

%

 

 

 

 

17.0

%

18.3

%

 

 

 

 

 

Power Systems

 

9.7

%

7.0

%

 

 

 

 

8.8

%

5.0

%

 

 

 

 

 

Discrete Automation & Motion

 

19.6

%

19.7

%

 

 

 

 

19.4

%

18.3

%

 

 

 

 

 

Low Voltage Products

 

19.9

%

22.7

%

 

 

 

 

20.3

%

20.4

%

 

 

 

 

 

Process Automation

 

13.0

%

12.2

%

 

 

 

 

12.6

%

11.9

%

 

 

 

 

 


* Operational EBITDA represents earnings before interest and taxes, and depreciation and amortization, adjusted for restructuring-related charges, the mark-to-market treatment of hedging transactions along with unrealized foreign exchange movements on receivables/payables, and non-recurring charges related to the Baldor acquisition—see reconciliation of non-GAAP measures in Appendix I.

 

11



 

Q3 2011 orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Q3 11

 

Q3 10

 

US$

 

Local

 

Europe

 

4’140

 

3’693

 

12

%

2

%

3’602

 

3’173

 

14

%

3

%

Americas

 

2’299

 

1’502

 

53

%

49

%

2’236

 

1’578

 

42

%

38

%

Asia

 

2’777

 

2’413

 

15

%

8

%

2’588

 

2’195

 

18

%

10

%

Middle East and Africa

 

610

 

589

 

4

%

0

%

911

 

957

 

-5

%

-9

%

Group total

 

9’826

 

8’197

 

20

%

12

%

9’337

 

7’903

 

18

%

11

%

 

Nine months 2011 orders received and revenues by region

 

 

 

Orders received

 

Change

 

Revenues

 

Change

 

$ millions

 

9M 11

 

9M 10

 

US$

 

Local

 

9M 11

 

9M 10

 

US$

 

Local

 

Europe

 

11’720

 

9’992

 

17

%

8

%

10’672

 

8’820

 

21

%

11

%

Americas

 

7’027

 

4’461

 

58

%

53

%

6’472

 

4’373

 

48

%

44

%

Asia

 

8’776

 

6’679

 

31

%

23

%

7’280

 

6’280

 

16

%

9

%

Middle East and Africa

 

2’527

 

2’797

 

-10

%

-13

%

2’995

 

2’937

 

2

%

-2

%

Group total

 

30’050

 

23’929

 

26

%

18

%

27’419

 

22’410

 

22

%

15

%

 

Operational EBIT and operational EBITDA by division Q3 2011 vs Q3 2010

 

 

 

ABB

 

Power
Products

 

Power
Systems

 

Discrete
Automation
& Motion

 

Low Voltage
Products

 

Process
Automation

 

 

 

Q3 11

 

Q3 10

 

Q3 11

 

Q3 10

 

Q3 11

 

Q3 10

 

Q3 11

 

Q3 10

 

Q3 11

 

Q3 10

 

Q3 11

 

Q3 10

 

Revenues (as per Financial Statements)

 

9’337

 

7’903

 

2’676

 

2’439

 

1’831

 

1’679

 

2’313

 

1’460

 

1’364

 

1’187

 

1’988

 

1’859

 

FX/commodity timing differences on Revenues

 

152

 

-101

 

28

 

-22

 

68

 

-41

 

17

 

-6

 

11

 

-4

 

25

 

-28

 

Operational revenues

 

9’489

 

7’802

 

2’704

 

2’417

 

1’899

 

1’638

 

2’330

 

1’454

 

1’375

 

1’183

 

2’013

 

1’831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (as per Financial Statements)

 

1’194

 

1’156

 

356

 

406

 

104

 

101

 

382

 

270

 

226

 

241

 

246

 

214

 

FX/commodity timing differences on EBIT

 

104

 

-83

 

31

 

-40

 

32

 

-18

 

17

 

-6

 

20

 

-3

 

-8

 

-15

 

Restructuring-related costs

 

29

 

20

 

27

 

3

 

6

 

4

 

-3

 

3

 

-2

 

4

 

1

 

5

 

Charges (non-recurring) related to Baldor

 

-6

 

0

 

0

 

0

 

0

 

0

 

-6

 

0

 

0

 

0

 

0

 

0

 

Operational EBIT

 

1’321

 

1’093

 

414

 

369

 

142

 

87

 

390

 

267

 

244

 

242

 

239

 

204

 

Operational EBIT margin

 

13.9

%

14.0

%

15.3

%

15.3

%

7.5

%

5.3

%

16.7

%

18.4

%

17.7

%

20.5

%

11.9

%

11.1

%

Depreciation (reversal of)

 

167

 

138

 

43

 

37

 

16

 

12

 

34

 

17

 

26

 

24

 

17

 

14

 

Amortization (reversal of)

 

90

 

43

 

7

 

5

 

26

 

15

 

30

 

2

 

3

 

2

 

5

 

6

 

Backlog amortization related to Baldor

 

2

 

0

 

0

 

0

 

0

 

0

 

2

 

0

 

0

 

0

 

0

 

0

 

Operational EBITDA

 

1’580

 

1’274

 

464

 

411

 

184

 

114

 

456

 

286

 

273

 

268

 

261

 

224

 

Operational EBITDA margin

 

16.7

%

16.3

%

17.2

%

17.0

%

9.7

%

7.0

%

19.6

%

19.7

%

19.9

%

22.7

%

13.0

%

12.2

%

 

12



 

Appendix I

Reconciliation of non-GAAP measures

(US$ millions)

 

 

 

Three months ended Sep. 30,

 

 

 

2011

 

2010

 

EBIT Margin (= EBIT as % of revenues)

 

 

 

 

 

 

 

 

 

 

 

Earnings before interest and taxes (EBIT)

 

1’194

 

1’156

 

Revenues

 

9’337

 

7’903

 

EBIT Margin

 

12.8

%

14.6

%

 

 

 

 

 

 

EBIT as per financial statements

 

1’194

 

1’156

 

reversal of:

 

 

 

 

 

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

 

170

 

(183

)

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

 

9

 

(18

)

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

 

(75

)

118

 

Restructuring and restructuring-related expenses

 

29

 

20

 

Charges related to Baldor (1)

 

(6

)

 

Operational EBIT

 

1’321

 

1’093

 

reversal of:

 

 

 

 

 

Depreciation

 

167

 

138

 

Amortization

 

90

 

43

 

Backlog amortization related to significant acquisitions

 

2

 

 

Operational EBITDA

 

1’580

 

1’274

 

 

 

 

 

 

 

Revenues as per financial statements

 

9’337

 

7’903

 

reversal of:

 

 

 

 

 

Unrealized gains and losses on derivatives

 

211

 

(180

)

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

 

20

 

(25

)

Unrealized foreign exchange movements on receivables (and related assets)

 

(79

)

104

 

Operational Revenues

 

9’489

 

7’802

 

 

 

 

 

 

 

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

 

16.7

%

16.3

%

 


(1) includes $2 million backlog amortization related to Baldor in the 3 months ended September 30, 2011

 

 

 

Sep. 30,

 

Dec. 31,

 

 

 

2011

 

2010

 

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

 

 

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

4’996

 

5’897

 

Marketable securities and short-term investments

 

598

 

2’713

 

Cash and marketable securities

 

5’594

 

8’610

 

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

 

2’238

 

1’043

 

Long-term debt

 

2’380

 

1’139

 

Total debt

 

4’618

 

2’182

 

Net Cash

 

976

 

6’428

 

 

 

 

Sep. 30,

 

Dec. 31,

 

 

 

2011

 

2010

 

Net Working Capital

 

 

 

 

 

 

 

 

 

 

 

Receivables, net

 

10’831

 

9’970

 

Inventories, net

 

6’492

 

4’878

 

Prepaid expenses

 

262

 

193

 

Accounts payable, trade

 

(4’772

)

(4’555

)

Billings in excess of sales

 

(1’748

)

(1’730

)

Employee and other payables

 

(1’322

)

(1’526

)

Advances from customers

 

(1’821

)

(1’764

)

Accrued expenses

 

(1’756

)

(1’644

)

Net Working Capital

 

6’166

 

(3’822

)

 

13



 

ABB Ltd Interim Consolidated Income Statements (unaudited)

 

 

 

Nine months ended

 

Three months ended

 

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

 

Sep. 30, 2011

 

Sep. 30, 2010

 

Sep. 30, 2011

 

Sep. 30, 2010

 

 

 

 

 

 

 

 

 

 

 

Sales of products

 

23,027

 

18,663

 

7,820

 

6,601

 

Sales of services

 

4,392

 

3,747

 

1,517

 

1,302

 

Total revenues

 

27,419

 

22,410

 

9,337

 

7,903

 

Cost of products

 

(16,208

)

(13,044

)

(5,535

)

(4,558

)

Cost of services

 

(2,770

)

(2,466

)

(955

)

(841

)

Total cost of sales

 

(18,978

)

(15,510

)

(6,490

)

(5,399

)

Gross profit

 

8,441

 

6,900

 

2,847

 

2,504

 

Selling, general and administrative expenses

 

(3,936

)

(3,318

)

(1,317

)

(1,106

)

Non-order related research and development expenses

 

(972

)

(762

)

(332

)

(260

)

Other income (expense), net

 

11

 

20

 

(4

)

18

 

Earnings before interest and taxes

 

3,544

 

2,840

 

1,194

 

1,156

 

Interest and dividend income

 

65

 

70

 

22

 

20

 

Interest and other finance expense

 

(172

)

(138

)

(80

)

(51

)

Income from continuing operations before taxes

 

3,437

 

2,772

 

1,136

 

1,125

 

Provision for taxes

 

(997

)

(790

)

(318

)

(304

)

Income from continuing operations, net of tax

 

2,440

 

1,982

 

818

 

821

 

Income (loss) from discontinued operations, net of tax

 

1

 

(3

)

2

 

(2

)

Net income

 

2,441

 

1,979

 

820

 

819

 

Net income attributable to noncontrolling interests

 

(103

)

(118

)

(30

)

(45

)

Net income attributable to ABB

 

2,338

 

1,861

 

790

 

774

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

2,337

 

1,864

 

788

 

776

 

Net income

 

2,338

 

1,861

 

790

 

774

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

1.02

 

0.82

 

0.34

 

0.34

 

Net income

 

1.02

 

0.81

 

0.34

 

0.34

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to ABB shareholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

1.02

 

0.81

 

0.34

 

0.34

 

Net income

 

1.02

 

0.81

 

0.34

 

0.34

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to ABB shareholders

 

2,287

 

2,287

 

2,290

 

2,284

 

Diluted earnings per share attributable to ABB shareholders

 

2,290

 

2,292

 

2,291

 

2,288

 

 

See Notes to the Interim Consolidated Financial Information

 

14



 

ABB Ltd Interim Consolidated Balance Sheets (unaudited)

 

($ in millions, except share data)

 

Sep. 30, 2011

 

Dec. 31, 2010

 

 

 

 

 

 

 

Cash and equivalents

 

4,996

 

5,897

 

Marketable securities and short-term investments

 

598

 

2,713

 

Receivables, net

 

10,831

 

9,970

 

Inventories, net

 

6,492

 

4,878

 

Prepaid expenses

 

262

 

193

 

Deferred taxes

 

1,052

 

896

 

Other current assets

 

439

 

801

 

Total current assets

 

24,670

 

25,348

 

 

 

 

 

 

 

Property, plant and equipment, net

 

4,757

 

4,356

 

Goodwill

 

7,270

 

4,085

 

Other intangible assets, net

 

2,224

 

701

 

Prepaid pension and other employee benefits

 

232

 

173

 

Investments in equity-accounted companies

 

19

 

19

 

Deferred taxes

 

259

 

846

 

Other non-current assets

 

821

 

767

 

Total assets

 

40,252

 

36,295

 

 

 

 

 

 

 

Accounts payable, trade

 

4,772

 

4,555

 

Billings in excess of sales

 

1,748

 

1,730

 

Employee and other payables

 

1,322

 

1,526

 

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

 

2,238

 

1,043

 

Advances from customers

 

1,821

 

1,764

 

Deferred taxes

 

420

 

357

 

Provisions for warranties

 

1,346

 

1,393

 

Provisions and other current liabilities

 

2,940

 

2,726

 

Accrued expenses

 

1,756

 

1,644

 

Total current liabilities

 

18,363

 

16,738

 

 

 

 

 

 

 

Long-term debt

 

2,380

 

1,139

 

Pension and other employee benefits

 

802

 

831

 

Deferred taxes

 

720

 

411

 

Other non-current liabilities

 

1,636

 

1,718

 

Total liabilities

 

23,901

 

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 September 30, 2011, and December 31, 2010, respectively)

 

1,607

 

1,454

 

Retained earnings

 

16,158

 

15,389

 

Accumulated other comprehensive loss

 

(1,507

)

(1,517

)

Treasury stock, at cost (24,425,568 and 25,317,453 shares at September 30, 2011, and December 31, 2010, respectively)

 

(426

)

(441

)

Total ABB stockholders’ equity

 

15,832

 

14,885

 

Noncontrolling interests

 

519

 

573

 

Total stockholders’ equity

 

16,351

 

15,458

 

Total liabilities and stockholders’ equity

 

40,252

 

36,295

 

 

See Notes to the Interim Consolidated Financial Information

 

15



 

ABB Ltd Interim Consolidated Statements of Cash Flows (unaudited)

 

 

 

Nine months ended

 

Three months ended

 

($ in millions)

 

Sep. 30, 2011

 

Sep. 30, 2010

 

Sep. 30, 2011

 

Sep. 30, 2010

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

2,441

 

1,979

 

820

 

819

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

730

 

507

 

257

 

181

 

Pension and other employee benefits

 

(55

)

45

 

11

 

15

 

Deferred taxes

 

24

 

100

 

30

 

30

 

Net gain from sale of property, plant and equipment

 

(23

)

(17

)

(7

)

(3

)

Income from equity-accounted companies

 

(1

)

(2

)

 

 

Other

 

83

 

68

 

36

 

32

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Trade receivables, net

 

(617

)

(265

)

(357

)

35

 

Inventories, net

 

(1,213

)

(462

)

(314

)

(55

)

Trade payables

 

74

 

506

 

(183

)

186

 

Billings in excess of sales

 

53

 

(16

)

65

 

(60

)

Provisions, net

 

(340

)

(131

)

(75

)

(4

)

Advances from customers

 

85

 

(104

)

4

 

(8

)

Other assets and liabilities, net

 

697

 

230

 

524

 

194

 

Net cash provided by operating activities

 

1,938

 

2,438

 

811

 

1,362

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchases of marketable securities (available-for-sale)

 

(899

)

(2,545

)

(281

)

(867

)

Purchases of marketable securities (held-to-maturity)

 

 

(65

)

 

 

Purchases of short-term investments

 

(140

)

(1,772

)

 

(196

)

Purchases of property, plant and equipment and intangible assets

 

(576

)

(433

)

(233

)

(153

)

Acquisition of businesses (net of cash acquired) and changes in cost and equity investments

 

(3,636

)

(1,291

)

(450

)

(137

)

Proceeds from sales of marketable securities (available-for-sale)

 

2,416

 

566

 

17

 

16

 

Proceeds from maturity of marketable securities (available-for-sale)

 

235

 

393

 

15

 

173

 

Proceeds from maturity of marketable securities (held-to-maturity)

 

 

290

 

 

50

 

Proceeds from short-term investments

 

529

 

3,071

 

4

 

126

 

Proceeds from sales of property, plant and equipment

 

23

 

31

 

8

 

7

 

Proceeds from sales of businesses and equity-accounted companies (net of cash disposed)

 

4

 

62

 

1

 

(3

)

Changes in financing and other non-current receivables, net

 

(61

)

(46

)

14

 

(26

)

Net cash used in investing activities

 

(2,105

)

(1,739

)

(905

)

(1,010

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net changes in debt with original maturities of 90 days or less

 

1,124

 

66

 

1,027

 

30

 

Increase in debt

 

1,468

 

197

 

151

 

30

 

Repayment of debt

 

(1,571

)

(327

)

(232

)

(60

)

Issuance of shares

 

105

 

6

 

 

6

 

Transactions in treasury shares

 

5

 

(120

)

 

(16

)

Dividends paid

 

(1,569

)

 

 

 

Dividends paid in the form of nominal value reduction

 

 

(1,112

)

 

(1,112

)

Acquisition of noncontrolling interests

 

(13

)

(954

)

(2

)

(954

)

Dividends paid to noncontrolling shareholders

 

(156

)

(188

)

(46

)

(71

)

Other

 

(1

)

13

 

(64

)

4

 

Net cash provided by (used in) financing activities

 

(608

)

(2,419

)

834

 

(2,143

)

 

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and equivalents

 

(126

)

(130

)

(296

)

524

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and equivalents - continuing operations

 

(901

)

(1,850

)

444

 

(1,267

)

 

 

 

 

 

 

 

 

 

 

Cash and equivalents, beginning of period

 

5,897

 

7,119

 

4,552

 

6,536

 

Cash and equivalents, end of period

 

4,996

 

5,269

 

4,996

 

5,269

 

 

 

 

 

 

 

 

 

 

 

Supplementary disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

Interest paid

 

103

 

72

 

38

 

26

 

Taxes paid

 

952

 

698

 

225

 

199

 

 

See Notes to the Interim Consolidated Financial Information

 

16



 

ABB Ltd Interim Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

 

 

 

 

 

 

 

Accumulated other comprehensive loss

 

 

 

 

 

 

 

 

 

($ in millions)

 

Capital stock
and
additional
paid-in capital

 

Retained
earnings

 

Foreign currency
translation
adjustment

 

Unrealized
gain (loss) on
available-for-sale
securities

 

Pension and
other
postretirement
plan adjustments

 

Unrealized gain
(loss) of
cash flow hedge
derivatives

 

Total accumulated
other
comprehensive
loss

 

Treasury
stock

 

Total ABB
stockholders’
equity

 

Noncontrolling
interests

 

Total
stockholders’
equity

 

Balance at January 1, 2010

 

3,943

 

12,828

 

(1,056

)

20

 

(1,068

)

20

 

(2,084

)

(897

)

13,790

 

683

 

14,473

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

1,861

 

 

 

 

 

 

 

 

 

 

 

 

 

1,861

 

118

 

1,979

 

Foreign currency translation adjustments

 

 

 

 

 

226

 

 

 

 

 

 

 

226

 

 

 

226

 

13

 

239

 

Effect of change in fair value of available-for-sale securities, net of tax

 

 

 

 

 

 

 

5

 

 

 

 

 

5

 

 

 

5

 

 

 

5

 

Unrecognized income related to pensions and other postretirement plans, net of tax