ABB Asea Brown Boveri Group Results - First three months 1996

Zürich, Switzerland. - April 29, 1996 - ABB, the international electrical engineering group, today announced a double-digit improvement in net income for the first three months.

ABB's 1996 income statement reflects its 50-percent ownership of the transportation joint venture established last year with Daimler-Benz. This share of the new venture represents a smaller business than the former 100-percent-owned Transportation segment and thus will have an effect when prior year comparisons are made. Exchange rate effects were very small and did not have a significant impact on reported results.

Orders received in the first three months of 1996 were US$ 8,903 million, about the same as the corresponding period last year (first three months 1995: US$ 8,863 million). On a comparable basis (excluding the Transportation activities in both years), ABB Group orders received increased 8 percent. Base orders for the Group continued to grow, albeit at a slower rate when compared to the strong improvement reported last year.

Contracts for advanced gas turbines in the United Kingdom and the largest gas turbine power plant in Vietnam resulted in a significant improvement in orders received for the Power Generation segment. Power Transmission and Distribution also reported improved orders received reflecting awards for the supply of high-voltage switchgear in the Middle East and the Asia Pacific regions. Industrial and Building Systems segment orders received were lower in comparison to the first quarter of 1995 when large petrochemical construction projects were booked.

The order backlog at the end of March, 1996 increased 1 percent over last year to US$ 34.6 billion (end of March, 1995: US$ 34.4 billion).

Revenues for the first quarter of 1996 improved by approximately 7 percent to US$ 7,436 million compared to last year (first three months 1995: US$ 6,927 million). Excluding the Transportation activities in both years, revenues were up 14 percent.

ABB Group operating earnings after depreciation amounted to US$ 605 million in the first quarter (first three months 1995: US$ 625 million). Lower interest income associated with customer advances on construction projects, primarily in Power Generation and Transportation, unfavorably affected operating earnings. Excluding this effect, operating earnings increased 6 percent. Good improvements in operating earnings were reported by the Industrial and Building Systems, Power Transmission and Distribution, and Financial Services segments.

Income before taxes in the first three months of 1996 increased 13 percent to US$ 370 million (first three months 1995: US$ 328 million).

Net income of US$ 219 million in the first three months of 1996 represents an increase of 19 percent over the same period last year (first three months 1995: US$ 184 million).

The economic slowdown that began last year continues. While reduced demand from the construction industry is being experienced, growth for many industrial and investment goods remains positive. There is good growth in emerging markets and cost reduction programs continue to influence results favorably.

As stated previously, on a comparable basis, net income for the full year of 1996 is expected to increase over 1995.

ABB Asea Brown Boveri Group

Consolidated Income Statement

(US$ in millions)

	1-3/96	1-3/95	1995
Revenues	7,436	6,927	33,738
Material expenses	-3,315	-2,942	-14,604
Personnel expenses	-2,532	-2,400	-10,246
Other expenses	-1,186	-1,136	-5,410
Changes in work in progress and finished goods	448	404	-572
Depreciation of fixed assets	-260	-243	-1,021
Unusual items 1)	14	15	-246
Operating Earnings after Depreciation	605	625	3,275
Earnings from equity accounted companies	1	1	12
Dividend income	0	2	14
Interest income	159	114	509
Interest on advances	-180	-236	-987
Interest expense	-215	-169	-694
Exchange differences	-0	-9	-19
Income before Taxes	370	328	2,110
Taxes	-149	-138	-749
Net Income before Minority Interest	221	190	1,361
Minority Interest	-2	-6	-46
Net Income	219	184	1,315

• capital gains/losses on sales of participations, land and buildings
• discontinued operations
• one-time effects of changes in accounting principles (1995 only)

	1-3/96	1-3/95	1995
USD 1.00 = SFr.:	1.19	1.24	1.18
USD 1.00 = SKr.:	6.77	7.42	7.11
USD 1.00 = DM:	1.47	1.47	1.43
USD 1.00 = ECU:	0.79	0.79	0.77