ANN Abb

 

TIDMANN 
 
RNS Number : 9840A 
ABB Ltd 
19 October 2009 
 

ABB third-quarter results to be positively impacted by change of provisions of 
about $380 million 
Zurich, Switzerland, Oct. 19, 2009 - ABB will adjust certain provisions and 
accruals resulting in an overall reduction of approximately $380 million in the 
third quarter of 2009. As a result of that adjustment, ABB expects to announce a 
net income for the third quarter of approximately $1 billion. 
 
 
In December 2008, ABB announced that it had reserved for anticipated charges 
relating to certain compliance, tax and restructuring matters. Based on 
developments impacting the third quarter, ABB has made significant positive and 
negative changes to some of those provisions as well as adjustments to other 
reserves. 
 
 
ABB's provisions as at the end of the third quarter will be impacted primarily 
by changes in the provisions relating to alleged anti-competitive practices, 
including, but not limited to, the European Commission's power transformer 
decision earlier this month. 
 
 
ABB's third-quarter accruals will also include an increase in charges relating 
to the challenges of doing business in Russia, including the impact of ongoing 
tax matters.  As a result, ABB continues reviewing the situation and assessing 
its business model in Russia. 
 
 
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 120,000 people. 
 
 
Important notice about forward-looking information 
This press release includes forward-looking information and 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 related to the financial 
crisis and economic slowdown, costs associated with compliance activities, the 
amount of revenues we are able to generate from backlog and orders received, raw 
materials 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: 
 
 
ABB Group Investor Relations 
Switzerland: Tel +41 43 317 7111 
investor.relations@ch.abb.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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