Learning Center
Plans & pricing Sign in
Sign Out



									Press Release
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

Key figures:
                                                 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
external reasons.

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.

Order backlog

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.
Press Release
Net profit

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 ( 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:

To top