COVID-19 impacts results; weighs on outlook

· Orders $7.3 billion, -4%; comparable +1%
· Revenues $6.2 billion, -9%; comparable -7%[1] (http://#_ftn1)
· Income from operations $373 million; margin 6.0%
· Operational EBITA1 $636 million; margin1 10.2%, including 30 basis points stranded costs
· Net income $376 million, -30%
· Basic EPS $0.18, -30%[2] (http://#_ftn2); operational EPS1 $0.30, -2%
· Cash flow from operating activities -$577 million

"The COVID-19 pandemic impacted our first quarter results, lowering revenues and operating margins in all our businesses, although order growth held up well. We are doing our utmost to ensure the health and safety of our employees while maintaining business continuity, serving our customers and continuing to invest in R&D for the long-term," said Björn Rosengren, CEO of ABB.

"In the second quarter, we expect ABB's operations to be significantly challenged by a sharp drop in demand due to lockdowns in many parts of the world. Nevertheless, we will accelerate our efforts to manage our costs and safeguard liquidity, while moving ahead with decentralizing the group and our target to complete the divestment of Power Grids at the end of the second quarter."

 

[1] (http://#_ftnref1)For a reconciliation of non-GAAP measures, see "supplemental reconciliations and definitions" in the attached Q1 2020 Financial Information.

[2] (http://#_ftnref2) EPS growth rates are computed using unrounded amounts. Comparable operational earnings per share is in constant currency (2019 exchange rates not adjusted for changes in the business portfolio).

Media Relations
phone: +41 43 317 7111
e-mail: media.relations@ch.abb.com

Investor Relations
phone: +41 43 317 7111
e-mail: investor.relations@ch.abb.com

ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland

For further information, please refer to www.abb.com/news

http://publish.ne.cision.com//Release/ViewReleaseHtml/3FA74A6A05FFE217E0C856B0705FC7D6

https://mb.cision.com/Main/417/3098743/1237662.pdf

(c) 2020 Cision. All rights reserved., source Press Releases - English