Q3-2021-results: financial information statements - English

IS

-
ABB Ltd Consolidated Income Statements (unaudited)
Nine months ended	Three months ended
($ in millions, except per share data in $)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Sales of products	17,644	15,391	5,770	5,363
Sales of services and other	3,734	3,561	1,258	1,219
Total revenues	21,378	18,952	7,028	6,582
Cost of sales of products	(12,089)	(11,047)	(3,981)	(4,008)
Cost of services and other	(2,219)	(2,174)	(753)	(740)
Total cost of sales	(14,308)	(13,221)	(4,734)	(4,748)
Gross profit	7,070	5,731	2,294	1,834
Selling, general and administrative expenses	(3,808)	(3,624)	(1,231)	(1,192)
Non-order related research and development expenses	(897)	(791)	(296)	(270)
Impairment of goodwill	-	(311)	-	(311)
Other income (expense), net	378	10	85	10
Income from operations	2,743	1,015	852	71
Interest and dividend income	37	39	11	12
Interest and other finance expense	(108)	(191)	(17)	(79)
Non-operational pension (cost) credit	130	(272)	42	(343)
Income (loss) from continuing operations before taxes	2,802	591	888	(339)
Income tax expense	(775)	(373)	(201)	(164)
Income (loss) from continuing operations, net of tax	2,027	218	687	(503)
Income (loss) from discontinued operations, net of tax	(45)	5,043	(9)	5,038
Net income	1,982	5,261	678	4,535
Net income attributable to noncontrolling interests	(76)	(36)	(26)	(5)
Net income attributable to ABB	1,906	5,225	652	4,530
Amounts attributable to ABB shareholders:
Income (loss) from continuing operations, net of tax	1,951	190	661	(513)
Income (loss) from discontinued operations, net of tax	(45)	5,035	(9)	5,043
Net income	1,906	5,225	652	4,530
Basic earnings per share attributable to ABB shareholders:
Income (loss) from continuing operations, net of tax	0.97	0.09	0.33	(0.24)
Income (loss) from discontinued operations, net of tax	(0.02)	2.36	0.00	2.38
Net income	0.95	2.45	0.33	2.14
Diluted earnings per share attributable to ABB shareholders:
Income (loss) from continuing operations, net of tax	0.96	0.09	0.33	(0.24)
Income (loss) from discontinued operations, net of tax	(0.02)	2.36	0.00	2.38
Net income	0.94	2.45	0.32	2.14
Weighted-average number of shares outstanding (in millions) used to compute:
Basic earnings per share attributable to ABB shareholders	2,011	2,129	2,001	2,119
Diluted earnings per share attributable to ABB shareholders	2,028	2,135	2,019	2,119
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information

CI

-
ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)
Nine months ended	Three months ended
($ in millions)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total comprehensive income, net of tax	1,722	6,244	516	5,760
Total comprehensive income attributable to noncontrolling interests, net of tax	(81)	(58)	(26)	(31)
Total comprehensive income attributable to ABB shareholders, net of tax	1,641	6,186	490	5,729
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information

BS

-
ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions)	Sep. 30, 2021	Dec. 31, 2020
Cash and equivalents	3,709	3,278
Restricted cash	31	323
Marketable securities and short-term investments	746	2,108
Receivables, net	6,728	6,820
Contract assets	1,139	985
Inventories, net	4,864	4,469
Prepaid expenses	217	201
Other current assets	511	760
Current assets held for sale and in discontinued operations	1,048	282
Total current assets	18,993	19,226
Restricted cash, non-current	300	300
Property, plant and equipment, net	3,910	4,174
Operating lease right-of-use assets	931	969
Investments in equity-accounted companies	1,683	1,784
Prepaid pension and other employee benefits	423	360
Intangible assets, net	1,627	2,078
Goodwill	10,524	10,850
Deferred taxes	888	843
Other non-current assets	549	504
Total assets	39,828	41,088
Accounts payable, trade	4,642	4,571
Contract liabilities	1,940	1,903
Short-term debt and current maturities of long-term debt	2,414	1,293
Current operating leases	206	270
Provisions for warranties	1,014	1,035
Other provisions	1,384	1,519
Other current liabilities	4,233	4,181
Current liabilities held for sale and in discontinued operations	817	644
Total current liabilities	16,650	15,416
Long-term debt	4,270	4,828
Non-current operating leases	753	731
Pension and other employee benefits	1,066	1,231
Deferred taxes	770	661
Other non-current liabilities	1,934	2,025
Non-current liabilities held for sale and in discontinued operations	76	197
Total liabilities	25,519	25,089
Commitments and contingencies
Stockholders' equity:
Common stock, CHF 0.12 par value
(2,053 million and 2,168 million shares issued at September 30, 2021, and December 31, 2020, respectively)	178	188
Additional paid-in capital	16	83
Retained earnings	19,837	22,946
Accumulated other comprehensive loss	(4,266)	(4,002)
Treasury stock, at cost
(61 million and 137 million shares at September 30, 2021, and December 31, 2020, respectively)	(1,814)	(3,530)
Total ABB stockholders' equity	13,951	15,685
Noncontrolling interests	358	314
Total stockholders' equity	14,309	15,999
Total liabilities and stockholders' equity	39,828	41,088
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information

CFS

-
ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Nine months ended	Three months ended
($ in millions)	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating activities:
Net income	1,982	5,261	678	4,535
Loss (income) from discontinued operations, net of tax	45	(5,043)	9	(5,038)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization	677	686	220	231
Impairment of goodwill	-	311	-	311
Changes in fair values of investments	(114)	(86)	(1)	(25)
Pension and other employee benefits	(159)	(27)	(65)	55
Deferred taxes	82	(159)	(27)	(158)
Net loss (gain) from derivatives and foreign exchange	99	29	55	4
Net loss (gain) from sale of property, plant and equipment	(22)	(24)	(7)	(20)
Fair value adjustment on assets and liabilities held for sale	-	33	-	14
Other	144	114	58	50
Changes in operating assets and liabilities:
Trade receivables, net	(182)	(37)	232	(103)
Contract assets and liabilities	(73)	41	74	128
Inventories, net	(692)	(201)	(399)	(2)
Accounts payable, trade	361	(98)	52	102
Accrued liabilities	336	(58)	283	(50)
Provisions, net	(79)	96	(19)	156
Income taxes payable and receivable	(92)	(78)	(36)	79
Other assets and liabilities, net	(8)	(110)	12	129
Net cash provided by operating activities - continuing operations	2,305	650	1,119	398
Net cash provided by (used in) operating activities - discontinued operations	5	(139)	(15)	10
Net cash provided by operating activities	2,310	511	1,104	408
Investing activities:
Purchases of investments	(414)	(5,982)	(67)	(4,368)
Purchases of property, plant and equipment and intangible assets	(459)	(432)	(166)	(129)
Acquisition of businesses (net of cash acquired)
and increases in cost- and equity-accounted companies	(227)	(99)	(199)	(19)
Proceeds from sales of investments	1,639	1,288	318	833
Proceeds from maturity of investments	80	1	-	1
Proceeds from sales of property, plant and equipment	36	68	13	41
Proceeds from sales of businesses (net of transaction costs
and cash disposed) and cost- and equity-accounted companies	93	(133)	46	9
Net cash from settlement of foreign currency derivatives	(75)	94	(3)	170
Other investing activities	(25)	11	(11)	25
Net cash provided by (used in) investing activities - continuing operations	648	(5,184)	(69)	(3,437)
Net cash provided by (used in) investing activities - discontinued operations	(83)	9,091	(13)	9,201
Net cash provided by (used in) investing activities	565	3,907	(82)	5,764
Financing activities:
Net changes in debt with original maturities of 90 days or less	213	(525)	(61)	(4,107)
Increase in debt	1,378	360	374	45
Repayment of debt	(763)	(663)	(13)	(95)
Delivery of shares	786	383	20	383
Purchase of treasury stock	(2,441)	(1,270)	(470)	(1,270)
Dividends paid	(1,726)	(1,736)	-	-
Dividends paid to noncontrolling shareholders	(91)	(82)	1	(11)
Other financing activities	(17)	(67)	(23)	37
Net cash used in financing activities - continuing operations	(2,661)	(3,600)	(172)	(5,018)
Net cash provided by financing activities - discontinued operations	-	31	-	14
Net cash used in financing activities	(2,661)	(3,569)	(172)	(5,004)
Effects of exchange rate changes on cash and equivalents and restricted cash	(75)	(55)	(41)	43
Adjustment for the net change in cash and equivalents and restricted cash
in discontinued operations	-	-	-	609
Net change in cash and equivalents and restricted cash	139	794	809	1,820
Cash and equivalents and restricted cash, beginning of period	3,901	3,544	3,231	2,518
Cash and equivalents and restricted cash, end of period	4,040	4,338	4,040	4,338
Supplementary disclosure of cash flow information:
Interest paid	75	111	17	9
Income taxes paid	793	689	250	227
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information

Equity

-
ABB Ltd Consolidated Statements of Changes in Stockholders' Equity (unaudited)
($ in millions)	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Treasury stock	Total ABB stockholders' equity	Non- controlling interests	Total stockholders' equity
Balance at January 1, 2020	188	73	19,640	(5,590)	(785)	13,526	454	13,980
Adoption of accounting
standard update	(82)	(82)	(9)	(91)
Comprehensive income:
Net income	5,225	5,225	36	5,261
Foreign currency translation
adjustments, net of tax of $4	600	600	22	622
Effect of change in fair value of
available-for-sale securities,
net of tax of $4	9	9	9
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $114	351	351	351
Change in derivative instruments
and hedges, net of tax of $(2)	1	1	1
Total comprehensive income	6,186	58	6,244
Changes in noncontrolling interests	(16)	(16)	19	3
Change in noncontrolling interests
in connection with divestments	-	(138)	(138)
Dividends to
noncontrolling shareholders	-	(98)	(98)
Dividends to shareholders	(1,758)	(1,758)	(1,758)
Share-based payment arrangements	40	40	40
Purchase of treasury stock	(1,533)	(1,533)	(1,533)
Delivery of shares	(17)	400	383	383
Call options	(1)	(1)	(1)
Balance at September 30, 2020	188	79	23,025	(4,629)	(1,919)	16,744	286	17,030
Balance at January 1, 2021	188	83	22,946	(4,002)	(3,530)	15,685	314	15,999
Comprehensive income:
Net income	1,906	1,906	76	1,982
Foreign currency translation
adjustments, net of tax of $2	(366)	(366)	5	(361)
Effect of change in fair value of
available-for-sale securities,
net of tax of $(3)	(10)	(10)	(10)
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $10	114	114	114
Change in derivative instruments
and hedges, net of tax of $0	(3)	(3)	(3)
Total comprehensive income	1,641	81	1,722
Changes in noncontrolling interests	(37)	(20)	(57)	55	(2)
Dividends to
noncontrolling shareholders	-	(92)	(92)
Dividends to shareholders	(1,730)	(1,730)	(1,730)
Cancellation of treasury shares	(10)	(17)	(3,130)	3,157	-	-
Share-based payment arrangements	48	48	48
Purchase of treasury stock	(2,430)	(2,430)	(2,430)
Delivery of shares	(68)	(136)	990	786	786
Other	6	6	6
Balance at September 30, 2021	178	16	19,837	(4,266)	(1,814)	13,951	358	14,309
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information