Financial highlights

Delivered robust results in a challenging environment; orders rose faster than the market on organic growth initiatives

Took out $1 billion in costs for sixth consecutive year, and increased cash return on invested capital to 12.7 percent

Regained momentum on large orders, with contracts including $800-million power project in Scotland and $200-million rail refurbishment project in Sweden

Unveiled innovative new technologies, including the revolutionary YuMi robot and a record-breaking high-voltage 525-kV extruded cable system

Increased customer satisfaction by 26 percent, as measured by the Net Promoter Score survey

Achieved break-even Operational EBITDA in Power Systems division through relentless execution of new business model

Forged new strategic partnerships to expand market presence and lower risks, including with Hitachi on power grids in Japan and with Philips on building automation

Successfully divested businesses that have no substantial synergies with rest of portfolio, raising more than $1 billion in pre-tax proceeds

Returned more than $2.8 billion to shareholders through share repurchases and dividend; Board proposes sixth consecutive increase in dividend

Launched Next Level strategy with ambitious targets to accelerate sustainable value creation, and implemented new organization

Total ABB Group ($ in millions unless otherwise indicated)

 

2014

2013

(1)

Refer to the Supplemental information section for definitions

Orders

41,515

38,896

Revenues

39,830

41,848

Income from operations

4,178

4,387

as % of revenues

10.5%

10.5%

Operational EBITDA(1)

5,400

6,075

as % of operational revenues(1)

13.5%

14.5%

Net income (attributable to ABB)

2,594

2,787

Basic earnings per share ($)

1.13

1.21

Dividend per share in CHF (proposed)

0.72

0.70

Cash flow from operating activities

3,845

3,653

Free cash flow(1)

2,857

2,632

as % of net income

110%

94%

Cash return on invested capital(1)

12.7%

11.6%

Number of employees

140,400

147,700

Revenues 2014 by division (unconsolidated)
Revenues 2014 by division (unconsolidated) (pie chart)Revenues 2014 by division (unconsolidated) (pie chart)
Operational EBITDA 2014 by division
Operational EBITDA 2014 by division (pie chart)Operational EBITDA 2014 by division (pie chart)
Employees by region 2014
Employees by region 2014 (pie chart)Employees by region 2014 (pie chart)
Orders 2014 by region
Orders 2014 by region (pie chart)Orders 2014 by region (pie chart)
Free cash flow and conversion rate, $ bn and %
2012–2014
Free cash flow and conversion rate (pie chart)Free cash flow and conversion rate (pie chart)
Dividend payout (CHF per share)
2008–2014
Dividend payout 2008–2014 (bar chart)Dividend payout 2008–2014 (bar chart)

(*proposed)