ZURICH-Wednesday 5 February 2020 [ AETOS Wire ]
FULL-YEAR 2019 HIGHLIGHTS
Orders $28.6 billion, steady; comparable +1%
Revenues $28.0 billion, +1%; comparable +1%
Operational EBITA margin1 11.1%, impacted by a combined 130 basis points due to stranded costs and non-core activities
Income from operations $1,938 million, -13%
Net income $1,439 million, -34%
Basic EPS $0.67, -34%2; Operational EPS1 $1.24, -7%
Cash flow from operating activities $2,325 million, -20%, incl. cash outflows for simplification program and Power Grids carve-out
CHF 0.80 per share dividend proposed
FOURTH QUARTER 2019 HIGHLIGHTS
Orders $6.9 billion, -1%; comparable +1%
Revenues $7.1 billion, -4%; comparable -2%
Operational EBITA margin 10.1%, impacted by a combined 170 basis points due to stranded costs and non-core activities
Income from operations $648 million, +136%
Cash flow from operating activities $1,911 million, +2%, incl. cash outflows for simplification program and Power Grids carve-out
NEW LEADERSHIP
BjÓ§rn Rosengren appointed CEO, effective March 1, 2020
(BUSINESS WIRE)-- “ABB gave a resilient performance in 2019 in the face of challenging market conditions and a significant transformation. Our revenues and operating margin both improved slightly. The divestment of Power Grids is on track and we are clearly starting to see the positive effects of implementing our new operating model and new culture,” said Peter Voser, Chairman and CEO of ABB. “In line with our dividend policy we are proposing a dividend of 0.80 CHF per share. We are committed to providing attractive returns to shareholders, further enhanced by the commencement of share buybacks using the net cash proceeds from the Power Grids transaction later this year.”
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KEY FIGURES
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CHANGE
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CHANGE
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($ in millions, unless otherwise indicated)
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Q4 2019
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Q4 2018
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US$
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Comparable3
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FY 2019
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FY 2018
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US$
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Comparable3
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Orders
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6,886
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6,985
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-1%
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+1%
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28,588
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28,590
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0%
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+1%
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Revenues
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7,068
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7,395
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-4%
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-2%
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27,978
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27,662
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+1%
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+1%
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Income from operations
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648
|
275
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+136%
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1,938
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2,226
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-13%
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Operational EBITA1
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710
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584
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+22%
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+24%4
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3,107
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3,005
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+3%
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+7%4
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as % of operational revenues
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10.1%
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7.9%
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+2.2pts
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11.1%
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10.9%
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+0.2pts
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Income (loss) from continuing operations, net of tax
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307
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210
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+46%
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1,090
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1,575
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-31%
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Net income attributable to ABB
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325
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317
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+3%
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1,439
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2,173
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-34%
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Basic EPS ($)
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0.15
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0.15
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+2%2
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0.67
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1.02
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-34%2
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Operational EPS ($)1
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0.27
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0.30
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-8%2
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-11%2
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1.24
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1.33
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-7%2
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-7%2
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Cash flow from operating activities5
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1,911
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1,867
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+2%
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2,325
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2,924
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-20%
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To view the full press release, click here.
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, including those in the sections of this release titled “Short-term outlook”, “Full-year 2019 results summary”, “Dividend”, “Revenues”, “Operational EBITA and Income from Operations”, “Cash flow from operating activities” and “Transformation progress”. 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. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates”, “expects,” “believes,” “estimates,” “plans”, “targets” 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, 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.
Zurich, February 5, 2020
Peter Voser, Chairman and CEO
1 For a reconciliation of non-GAAP measures, see “supplemental reconciliations and definitions” in the attached Q4 2019 Financial Information.
2 EPS growth rates are computed using unrounded amounts. Comparable operational earnings per share is in constant currency (2014 exchange rates not adjusted for changes in the business portfolio).
3 Growth rates for orders, order backlog and revenues are on a comparable basis (local currency adjusted for acquisitions and divestitures).
4 Constant currency (not adjusted for portfolio changes).
5 Amount represents total for both continuing and discontinued operations.
6 Management estimate
View source version on businesswire.com: https://www.businesswire.com/news/home/20200204006124/en/
Contacts
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
or
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
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