ABB delivers strong order growth in Q3

  · Orders up 28%[i] driven by large orders in power infrastructure and oil and
gas
  · Base orders increased for 5th consecutive quarter
  · PS ‘step change’ program on track; operational EBITDA[ii] at breakeven in Q3
  · Revenues and operational EBITDA reflect lower opening order backlog and
Power Systems
  · Cost reduction and cash generation on track
  · Launched Next Level strategy aimed at accelerating sustainable value
creation

Zurich, Switzerland, Oct. 22, 2014 – ABB’s focus on profitable organic growth
and the related strategic initiatives resulted in a strong order increase across
all regions in the third quarter.

Total orders[iii] rose to $11.2 billion, boosted by large orders (above $15
million) including a power transmission link in Europe, a mining automation
project in the Americas and a gas treatment plant in Africa. Base orders (below
$15 million) increased in every region. Continued successful implementation of
ABB’s service strategy resulted in a 10-percent increase in service orders in
the quarter.

“Our program for profitable organic growth has successfully created healthy
order momentum across all regions,” said CEO Ulrich Spiesshofer. “I am
encouraged to see attractive large project wins and five consecutive quarters of
base order growth.”

In line with a lower order backlog at the start of 2014, revenues were 6 percent
lower (4 percent like-for-like[iv]) at $9.8 billion. The operational EBITDA
margin was 14.3 percent in the third quarter versus 15.7 percent a year earlier.
The margin reflected lower revenues and the result in Power Systems (PS).

“In PS, we achieved significant milestones in project execution, continued to de
-risk the portfolio and implement a new business model for offshore wind
projects,” Spiesshofer said. “The division broke even in the quarter. We
continue to drive our focused action program to complete the turnaround and
address the remaining challenges ahead. Overall, our efforts on relentless
execution, including our cost savings program, are on track.”

Net income was $734 million and basic earnings per share was $0.32. Targeted net
working capital management measures supported cash from operations, which
increased 29 percent in the first nine months. ABB initiated the $4-billion
share buyback program announced in September and purchased shares with a value
of approximately $350 million during the quarter.

“We are driving profitable growth through penetration, innovation and expansion,
aimed at growing ahead of the global economy.” the CEO added. “We will carefully
manage costs and cash as the short-term outlook for the global economy is
increasingly uncertain. The entire management team is taking decisive actions in
line with our Next Level strategy, which was announced at our Capital Markets
Day in September.”

For more information please contact:
Media Relations:Thomas Schmidt, Antonio Ligi
(Zurich, Switzerland)
Tel: +41 43 317 7111 Fax: +41 43 317 79 58
media.relations@ch.abb.com
Investor Relations:
Switzerland: Tel. +41 43 317 71 11
investor.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
CH-8050 Zurich, Switzerland

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[i] Orders up 28 percent on a like-for-like basis. See the “Supplemental
Financial Information” attachment to the press release.

[ii] See reconciliation of operational EBITDA to Income from continuing
operations before taxes in Note 13 to the Interim Consolidated Financial
Statements (unaudited).

[iii] Management discussion of orders and revenues focuses on local currency
changes. U.S. dollar changes are reported in the results tables.

[iv] For non-GAAP measures, see the “Supplemental Financial Information”
attachment to the press release.