October 20, 2009 - ABB will adjust certain provisions and accruals resulting in an overall reduction of approximately $380 million in the third quarter of 2009. As a result of that adjustment, ABB expects to announce a net income for the third quarter of approximately $1 billion. In December 2008, ABB announced that it had reserved for anticipated charges relating to certain compliance, tax and restructuring matters. Based on developments impacting the third quarter, ABB has made significant positive and negative changes to some of those provisions as well as adjustments to other reserves.
ABB’s provisions as at the end of the third quarter will be impacted primarily by changes in the provisions relating to alleged anti-competitive practices, including, but not limited to, the European Commission’s power transformer decision earlier this month. ABB's third-quarter accruals will also include an increase in charges relating to the challenges of doing business in Russia, including the impact of ongoing tax matters. As a result, ABB continues reviewing the situation and assessing its business model in Russia. The company will announce its third quarter results on October 29, 2009. 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 120,000 people.