ABB » Topics » Cash flow

This excerpt taken from the ABB 6-K filed Feb 13, 2009.

Cash flow

 

Cash flow from operations in the fourth quarter amounted to $1.4 billion, roughly the same as a year earlier. Significant contributors to the development of cash flow in the quarter were the timing of customer payments on large projects, higher inventories in some short-cycle businesses, and the reduction in large orders with a subsequent decrease in customer advance payments. Included in fourth-quarter cash from operations is an outflow of $25 million paid as part of ABB’s asbestos agreement. For the full year, cash flow from operations increased to

 

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$4 billion, reflecting higher earnings and improved net working capital management. Full-year cash flow from operations included asbestos-related payments of $100 million.

 

Free cash flow for the full year amounted to $2.9 billion compared to $2.4 billion in 2007. Free cash flow as a share of net income amounted to 93 percent, including the impact of provisions and tax costs. Free cash flow in 2008 also reflected a 59-percent increase in capital expenditures to $1.2 billion, supporting the strong backlog and the company’s global footprint initiatives. The share of capital expenditures in emerging economies increased to 43 percent in 2008 from 37 percent the year before.

 

This excerpt taken from the ABB 6-K filed Feb 14, 2008.

Cash flow

Cash flow from operations in the fourth quarter improved by more than $400 million compared to the same quarter in 2006, in line with the EBIT growth. Working capital decreased during the quarter, reflecting the successful implementation of capital efficiency measures and the seasonal year-end fulfillment of delivery commitments. Included in fourth-quarter cash from operations is an outflow of $204 million paid as part of ABB’s asbestos agreement in connection with the sale of ABB Lummus Global. Full-year cash flow from operations also included previously-announced payments to asbestos trusts of $382 million, compared to $75 million in 2006.

 

Free cash flow for the full year increased by 52 percent compared to 2006. Free cash flow as a share of net income, excluding the recognition of deferred tax assets and the gain on the sale of ABB Lummus Global, was 88 percent in 2007 compared to 115 percent in 2006.(3) Including these items, free cash flow as a share of net income was 65 percent. Also contributing to the difference in free cash flow between 2006 and 2007 was a 41-percent increase in cash flows for capital expenditure in 2007, to $756 million, used mainly to increase capacity.

 

Net cash proceeds of approximately $800 million from the sale of ABB Lummus Global are accounted for in cash from investing activities.

 

This excerpt taken from the ABB 6-K filed Apr 27, 2007.

Cash flow

Cash flow from operations improved significantly in the first quarter, mainly reflecting earnings growth. Net working capital as a share of revenues increased to 12.2 percent in the first quarter from 11.3 percent in the same quarter a year ago, mainly the result of higher inventories to execute orders received in recent quarters that have not yet flowed through to revenues, as well as higher receivables.

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This excerpt taken from the ABB 6-K filed Feb 20, 2007.

Cash flow

Cash flow from operations in the fourth quarter improved by more than $300 million compared to the same quarter in 2005. Included in cash flow in the 2006 quarter was approximately $100 million in customer advances on large orders received. The improvement in cash flow for the full year versus 2005 reflects in part the approximately $490-million negative impact from reducing the securitization of receivables in 2005.

Free cash flow(2) for the full year increased by 77 percent compared to 2005. The cash conversion ratio(3) amounted to 115 percent in 2006, partly the result of some $460 million in project-related cash advances from customers.

"Cash flow" elsewhere:

Smith (AOS)
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