ABB

Q3 net income rises 86% to $738 million

• Orders up 33%, demand for power and automation technologies strong in all regions
• Revenues grow 26%, EBIT increases 55% to $1 billion
• EBIT margin 14.4% from continued strong business execution

Zurich, Switzerland, October 25, 2007 – ABB’s net income rose 86 percent in the third quarter to $738 million on continued growth in market demand, particularly for power infrastructure, and further operational improvements.

Earnings before interest and taxes (EBIT) rose to $1 billion on a 26-percent increase in revenues (19 percent in local currencies), leading to an EBIT margin of 14.4 percent compared with 11.8 percent in the same quarter of 2006. Cash flow from operating activities increased to $886 million versus $523 million in the third quarter a year ago.

Orders increased 33 percent (25 percent in local currencies) to $8.3 billion, reflecting investments to expand power infrastructure in emerging markets and to replace aging equipment and strengthen grids in mature markets. Industrial businesses also continued to invest in productivity improvements and cost reductions by lowering energy consumption.

“A combination of strong market growth and operational discipline has once again paid off,” said Fred Kindle, ABB President and CEO. “Our market and technology leadership together with performance improvements are helping us to reap the full benefits from continuing global growth and heightened concerns about climate change and energy efficiency.”