ABB AB (Sweden) and associated company
Since the 1996 Annual General Meeting, ASEA's official name has been changed to ABB AB. ABB AB's main asset is its 50-percent ownership interest in ABB Asea Brown Boveri Ltd, Zurich, Switzerland (ABB). As a result, ABB AB is no longer a corporate group nor does it conduct any operations, but is solely a management company with ABB as an associated company. For a full report on the development of the ABB Group, refer to the first part of this release.
Consolidated earnings
ABB's companies throughout the world report their income and financial position in local currencies, which are then translated to US$ to establish the ABB Group's consolidated accounts. In order to compute ABB AB and associated company's earnings, ABB AB's 50-percent share of ABB Group's earnings are translated from US$ to Swedish krona (SKr). ABB AB's share of ABB Group's earnings before taxes and after minority interests for the first nine months of 1996 was US$ 670 million (US$ 563 million for the corresponding period 1995), an increase of 19 percent. The US dollar has weakened from 1995 to 1996 against the SKr which has a negative effect when translating ABB AB's share in ABB earnings. In SKr., ABB AB's share in ABB's earnings increased by 10 percent from SKr 4,095 million to SKr 4,496 million.
Net income increased by 15 percent compared with the same period in 1995.
ABB AB Income Statement (consolidated)
| (Swedish krona in millions) | 1-9/96 | 1-9/95 | 1995 |
|
Share in ABB Group earnings
(before taxes and after minority) | 4,496 | 4,095 | 7,281 |
| Administrative costs, ABB AB | -17 | -18 | -21 |
| Interest Income, ABB AB | 25 | 23 | 31 |
| Interest Expense, ABB AB | -1 | -2 | -3 |
| Income before taxes | 4,503 | 4,098 | 7,288 |
| Taxes paid | -1,060 | -969 | -1,561 |
| Deferred taxes | -722 | -757 | -1,045 |
| Net income | 2,721 | 2,372 | 4,682 |
|
| Earnings per ABB AB Share, Skr | 29.00 | 26.00 | 49.90 |
| |
| Currency rate: 1.00 US$ = Skr | 6.71 | 7.28 | 7.11 |
ABB AB, the parent company
Income before taxes amounted to SKr 15 million (SKr 1,146 million in 1995). The dividend for the fiscal year 1995 was anticipated in the 1995 accounts and thus only the difference between dividend actually received and dividend anticipated is included for the first nine months of 1996.