ABB Limited, India Announces its Fourth
Quarter and year-end Results for 2010
Bengaluru, February 23, 2011:
Revenue up by 9% in Q4
Order backlog continues to be strong
Dividend 100% in a challenging year
Company continues to be debt free
Q4, 2010 Q4, 2009 12 mths 12 mths
ended 2010 ended 2009
Orders 13,942 23,766 63,496 86,847
Order backlog (at end of period) 84,362 84,787
Revenue 20,506 18,852 62,871 62,372
Profit before tax 156 1,576 1,002 5,274
Profit after tax 68 1,096 632 3,546
Figures in Rs. million unless stated otherwise
The company received orders worth 13,942 MINR during the quarter ended December 31, 2010,
compared with an order intake of 23,766 MINR for the same period last year. The order performance
of the company was impacted during the year by price erosion and increased competition mainly in
the power sector while the automation businesses remained stable. The orders received were further
impacted by de-logging of some orders for projects, which were indefinitely postponed for various
With increased investments expected in the infrastructure and industry sectors, the company
anticipates continued growth in the market. Better market conditions combined with management
actions underway to increase competitiveness, the company presumes that the order situation will
improve in the coming quarters.
The company’s order backlog stood at 84,362 MINR as of the end of December 2010 as against
84,787 MINR at the end of December 2009. With this strong order backlog, the revenues of the
company for the coming quarters are secured.
Revenue and operations
The revenue for the fourth quarter ending December 2010 was 20,506 MINR compared to 18,852
MINR showing a growth of 9% over the same quarter last year. Supported by a strong backlog, the
combined revenues for the power businesses witnessed double digit growth while the automation
businesses grew moderately.
The company continued to remain debt free in this quarter as well, with its focussed initiatives on
working capital management and generation of adequate cash from operating activities.
Keeping a long term view and renewed confidence in the potential of the Indian economy, the
company has taken multiple measures during the past year to augment and train its skilled resource
base including induction of specialists and expert resources mainly in the areas of business
development, sales, project management and engineering. The impact of increased investment in this
area will be offset by the productivity gains anticipated in the coming quarters.
The company posted a PBT of 156 MINR for the quarter ended December 2010 against 1,576 MINR
in the same quarter last year. The results were adversely impacted due to provisioning for expected
incremental early exit costs for all the balance projects, pertaining to the non-core businesses, which
the company had decided to exit in the earlier quarters.
The loss on account of fair valuation of foreign exchange forward contracts for firm trade
commitments and embedded derivative contracts also impacted the results.
Keeping in view the stable financial condition of the company and confidence in the future business
performance, the Board of Directors recommended a dividend of 100 percent, subject to the approval
of shareholders at the forthcoming Annual General Meeting.
“The ABB Group has a long term view and confidence in the potential of the Indian economy. The
Group increased its investment in India by 965 MUSD in last year’s open offer and continues to focus
on new initiatives for the future benefit of the company,” said Bazmi Husain, the recently appointed
Country Manager and Managing Director of ABB Ltd.“By increasing the indigenization of our product
lines and our competence in R&D, we will be well placed to offer more cost efficient and value-added
solutions for our customers. Ensuring the highest standard of operational excellence and consistent
investment in developing competence of our people will remain our key priorities.”
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 124,000 people.
For more information please contact:
Corporate Communications, ABB Ltd., India
Juliane Lenzner Sanaj Natarajan
Tel: + 91 80 22949106 Tel: +91 80 22949195
Fax :+ 91 80 22949148 Fax: +91 80 22949148
email : email@example.com email: firstname.lastname@example.org