SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of: October 2002
ABB Ltd
(Exact name of registrant as specified in charter)
N/A
(Translation of registrant's name into English)
Switzerland
(Jurisdiction of organization)
P.O. Box 8131, Affolternstrasse 44, CH-8050, Zurich, Switzerland
(Address of principal executive offices)
Registrant's telephone number, international: + 011-41-1-317-7111
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Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
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This Form 6-K consists of the following:
1. Press release of ABB Ltd (the "Company"), dated October 21, 2002, in
connection with asbestos-related liabilities of its subsidiary, Combustion
Engineering, Inc.
2. Press release of the Company, dated October 21, 2002, in connection with
the Company's 2002 earnings outlook.
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Press Release
For your business and technology editors
ABB considers options for Combustion Engineering
asbestos liability
Zurich, Switzerland, Oct. 21, 2002 - The ABB Group announced today it is likely
that the expected asbestos-related costs of its U.S. subsidiary Combustion
Engineering, Inc. (CE) now exceed the value of CE's assets, if CE's historical
settlement policies are continued into the future. The book value of CE's assets
as of September 30, 2002 is US$812 million.
CE and the ABB Group are considering various options for resolving the asbestos
liability, including the possible reorganization of CE under Chapter 11 of the
U.S. Bankruptcy code.
It is ABB's position that CE's asbestos-related liability can only be asserted
against CE. Some claimants have named other entities in connection with claims
against CE, including ABB Inc. and ABB Ltd., but there has been no adjudication
that any other entity within the ABB Group has liability for claims against CE.
ABB acquired CE in 1990. Historically, asbestos containing insulation materials
were used to insulate CE boilers. CE has paid out US$865 million to claimants
from 1990 to end 2001.
Many factors will affect the ultimate cost of resolving CE's liability, and it
is not possible now to determine the magnitude of those costs. Because the
ultimate cost of resolution is uncertain, the current reserve is not being
increased, but it no longer represents an estimate of the expected cost to CE of
continuing to resolve current and future claims under its historical settlement
policy.
This press release includes forward-looking information and statements that are
subject to risks and uncertainties that could cause actual results to differ.
These statements are based on current expectations, estimates and projections
about global economic conditions, the economic conditions of the regions and
industries that are major markets for ABB Ltd and ABB Ltd's lines of business.
These expectations, estimates and projections are generally identifiable by
statements containing words such as "expects", "believes,", "estimates" or
similar expressions. Important factors that could cause actual results to differ
materially from those expectations include, among others, economic and market
conditions in the geographic areas and industries that are major markets for
ABB's businesses, market acceptance of new products and services, changes in
governmental regulations, interest rates, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time in ABB's
filings with the U.S. Securities and Exchange Commission. Although ABB Ltd
believes that its expectations reflected in any such forward-looking statement
are based upon reasonable assumptions, it can give no assurance that those
expectations will be achieved.
For further information please contact:
Media Relations: Investor Relations:
ABB Corporate Communications, Zurich Switzerland: Tel. +41 43 317 38 04
Thomas Schmidt Sweden: Tel. +46 21 325 719
Tel: +41 43 317 6492 USA: Tel. +1 203 750 7743
Fax: +41 43 317 7858 investor.relations@ch.abb.com
media.relations@ch.abb.com
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Press Release
For your business and technology editors
ABB revises earnings outlook downward
Confirms net debt reduction target of US$ 1.5 billion by year-end
Zurich, Switzerland, October 21, 2002 - ABB said today it is revising its 2002
earnings outlook downward as a result of lingering market weakness and slower
than expected benefits from its cost reduction program.
At the same time, ABB confirmed its target of reducing net debt by US$ 1.5
billion by year-end, down from the level of US$ 4.1 billion at the end of 2001.
"The early signs of economic recovery that we saw in the first half of the year
have not materialized," said ABB chairman and CEO Jurgen Dormann. "Visibility
during the months of July and August was low, and we now see that September has
not delivered the expected recovery. As a result, we are lowering our outlook
for earnings."
Dormann added that the company had anticipated stronger markets would lift
earnings in the second half of the year. This would have offset the impact of
write-downs in some large Oil, Gas and Petrochemicals projects, losses in
Building Systems, investment write-downs in New Ventures and cost overruns in
Utilities.
"Given the uncertainty surrounding the strength and timing of an economic
recovery, we will not give an updated earnings outlook at this time," said
Dormann. "What is clear is that the cost base of the company is still too high
given the weak market conditions. We are speeding up our efforts to cut costs
and further streamline the organization in line with our core businesses of
power and automation technologies."
The company said its medium-term targets were under review.
As previously announced, the company will release its third-quarter results on
October 24, 2002.
This press release includes forward -looking information and statements that are
subject to risks and uncertainties that could cause actual results to differ.
These statements are based on current expectations, estimates and projections
about global economic conditions, the economic conditions of the regions and
industries that are major markets for ABB Ltd and ABB Ltd's lines of business.
These expectations, estimates and projections are generally identifiable by
statements containing words such as "expects", "believes," "estimates" or
similar expressions. Important factors that could cause actual results to differ
materially from those expectations include, among others, economic and market
conditions in the geographic areas and industries that are major markets for
ABB's businesses, market acceptance of new products and services, changes in
governmental regulations, interest rates, fluctuations in currency exchange
rates and such other factors as may be discussed from time to time in ABB's
filings with the U.S. Securities and Exchange Commission. Although ABB Ltd
believes that its expectations reflected in any such forward-looking statement
are based upon reasonable assumptions, it can give no assurance that those
expectations will be achieved.
For further information please contact:
Media Relations: Investor Relations:
ABB Corporate Communications, Zurich Switzerland: Tel. +41 43 317 38 04
Thomas Schmidt Sweden: Tel. +46 21 325 719
Tel: +41 43 317 6492 USA: Tel. +1 203 750 7743
Fax: +41 43 317 7958 investor.relations@ch.abb.com
media.relations@ch.abb.com
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ABB LTD
Date: October 21, 2002 By: /s/ BEAT HESS
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Name: Beat Hess
Title: Group Senior Officer
By: /s/ HANS ENHORNING
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Name: Hans Enhorning
Title: Group Vice President