Since the 1996 Annual General Meeting BBC Brown Boveri AG has changed its name to ABB AG. ABB AG's main asset is its 50-percent ownership interest in ABB Asea Brown Boveri Ltd, Zurich, Switzerland (ABB). ABB is reported as an associated company. For a full report
Consolidated earnings and equity
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 AG and associated company's earnings and stockholders' equity, ABB AG's 50-percent share of the ABB Group's earnings is translated from US$ to SFr.
ABB AG's share of ABB Group's earnings before taxes and after minority for the first half of 1996 is US$ 464 million (US$ 391 million for the corresponding period 1995). The US dollar has slightly firmed from 1995 to 1996 which affected the results positively when translating them into SFr.. In SFr., ABB AG's share in ABB's earnings increased by 20 percent, from SFr. 469 million to SFr. 561 million.
ABB AG's own contribution before taxes from cash management activities amounted to SFr. 6 million. This is clearly below the SFr. 26 million of the first six months of 1995 which were boosted by very favorable financial markets. Net income increased by 15 percent compared with the same period in 1995.
ABB AG Income Statement (consolidated)
| (Swiss francs in millions) | 1-6/96 | 1-6/95 | 1995 |
|
Share in ABB Group earnings
(before taxes and after minority) | 561 | 469 | 1,208 |
| Administrative costs, ABB AG | -5 | -3 | -6 |
| Interest Income, ABB AG | 17 | 35 | 67 |
| Interest Expense, ABB AG | -6 | -6 | -11 |
| Income before taxes | 567 | 495 | 1,258 |
| Taxes paid | -135 | -111 | -265 |
| Deferred taxes | -92 | -88 | -171 |
| Net income | 340 | 296 | 822 |
|
| Earnings per ABB AG Share, SFr | 37.30 | 33.60 | 90.20 |
| |
| Currency rate: 1.00 US$ = SFr | 1.21 | 1.20 | 1.18 |
|
ABB AB Balance Sheet (consolidated) |
|
Assets
(Swiss Francs in millions) | 30-06-96 | 30-06-95 | 31-12-95 |
|
| Cash and marketable securities | 866 | 785 | 876 |
| Other current assets | 25 | 22 | 24 |
| Shareholding in ABB Asea Brown Boveri Ltd. | 3,283 | 2,294 | 3,015 |
| Other fixed assets | 155 | 160 | 159 |
| Total Assets | 4,329 | 3,261 | 4,074 |
| Liabilities and stockholders' equity |
| Short-, medium- and long-term loans | 448 | 448 | 448 |
| Other liabilities | 19 | 16 | 23 |
| Stockholders' equity | 3,862 | 2,797 | 3,603 |
| Total liabilities and stockholders' equity | 4,329 | 3,261 | 4,074 |
| |
| Equity per ABB AG share, Skr | 423.70 | 306.90 | 395.30 |
| Currency rate: 1.00US$ = SFr | 1.25 | 1.15 | 1.15 |
ABB AG, the parent company
Income before taxes amounted to SFr. 264 million (SFr. 209 million in 1995). In addition to ABB AG's own contribution, the figures mainly include the dividend received from ABB Asea Brown Boveri Ltd in 1996.