ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

(1)(1)Order backlogDecember 31, % Change($ in millions) 2012 2011 2010 2012 2011Power Products 8,493 8,029 7,930 6 1Power Systems 12,107 11,570 10,929 5 6Discrete Automationand Motion 4,426 4,120 3,350 7 23Low Voltage Products 1,117 887 838 26 6Process Automation 6,416 5,771 5,530 11 4Operating divisions 32,559 30,377 28,577 7 6Corporate and Other (1) (3,261) (2,869) (2,384) n.a. n.a.Total 29,298 27,508 26,193 7 5Includes interdivisional eliminationsIn 2012, order backlog increased 7 percent (5 percent inlocal currencies) compared to 2011. The order backlog in thePower Products division grew in all businesses in 2012. ThePower Systems division also increased its order backlog despitea lower level of large orders. Although global economicconditions remained challenging, order backlog increased in2012 in the Discrete Automation and Motion division. Whilethe Low Voltage Products division grew, a substantial portionof the increase in the order backlog was due to Thomas &Betts. The order backlog in the Process Automation divisiongrew on orders from the mining as well as the oil and gassectors.In 2011, orders grew at a higher rate than revenuesleading to an increase in group order backlog by 5 percent(9 percent in local currencies) compared to 2010. Theincrease in order backlog in the Power Systems division islargely based on large orders for grid upgrades and theintegration of renewable energy sources. The order backlogin the Power Products division grew slightly in 2011 aftera decline in 2010. Despite slowing growth in global industrialdemand in the second half of 2011, order backlog in theDiscrete Automation and Motion division, only partly drivenby the Baldor acquisition, and in the Low Voltage Productsdivision continued to grow in 2011. The Process Automationdivision benefited from large orders in the oil and gas relatedmarine sectors, which increased order backlog.Revenues% Change($ in millions) 2012 2011 2010 2012 2011Power Products 10,717 10,869 10,199 (1) 7Power Systems 7,852 8,101 6,786 (3) 19Discrete Automationand Motion 9,405 8,806 5,617 7 57Low Voltage Products 6,638 5,304 4,554 25 16Process Automation 8,156 8,300 7,432 (2) 12Operating divisions 42,768 41,380 34,588 3 20Corporate and Other (1) (3,432) (3,390) (2,999) n.a. n.a.Total 39,336 37,990 31,589 4 20Includes interdivisional eliminationsRevenues in 2012 increased 4 percent (7 percent in localcurrencies) based on a solid order level recorded in theprevious year, as well as on the impact of Thomas & Betts.Excluding Thomas & Betts, revenues were steady, decreasing1 percent despite a difficult economic environment(increase of 3 percent in local currencies).Revenues in the Power Products division declined 1 percent(increased 2 percent in local currencies) impacted bylower revenues from the Transformers business. In the PowerSystems division, revenues were 3 percent lower but increased2 percent in local currencies, as orders recorded inthe previous year were executed and translated into revenues.Revenues rose 7 percent (10 percent in local currencies) inthe Discrete Automation and Motion division, as the Roboticsbusiness continued to grow at a double-digit rate in 2012. Inthe Low Voltage Products division, revenues grew 25 percent(29 percent in local currencies); excluding Thomas & Betts,revenues decreased 4 percent (stable in local currencies) followingdouble-digit growth in 2011. Revenues in the ProcessAutomation division were 2 percent lower but increased2 percent in local currencies supported by demand from oiland gas related sectors, while revenues declined in otherbusinesses such as Turbochargers and Full Service.Revenues in 2011 increased 20 percent (15 percent inlocal currencies) on the back of strong orders recorded in theprevious year, as well as on improving revenues from earlycyclebusiness in the first half of the year. Excluding Baldor,revenues increased 14 percent (9 percent in local currencies).In 2011, revenues in the Power Products division increased7 percent (2 percent in local currencies) following twoyears of revenue declines, mainly on growth in Medium-Voltage Products but also on higher revenues in Transformersand High Voltage Products. In the Power Systems division,revenues increased 19 percent (14 percent in local currencies)on the successful execution of large orders placed in theprevious year in the Grid Systems and Power Generation businesses.Revenues rose 57 percent (51 percent in local currencies)in the Discrete Automation and Motion division and22 percent (16 percent in local currencies) excluding Baldor.The Robotics business confirmed the turnaround seen in 2010and grew at a double-digit pace in 2011. Revenues growthsoftened in the second half of the year in the Low VoltageProducts division resulting in 16 percent higher revenues in2011 (11 percent in local currencies) compared to the previousyear. Revenues in the Process Automation division, whichis later in the economic cycle, were 12 percent (6 percent inlocal currencies) higher, supported by solid orders receivedin Minerals, Pulp and Paper, Turbochargers and Oil and Gasbusinesses.ABB Annual Report 2012 | Financial review 57