The EBIT loss for the fourth quarter was US$ 110 million, sharply down from the US$ 480 million loss reported for the fourth quarter in 2001. The main reason for reduced losses was the inclusion of a US$ 295 million charge for a change in accounting for reserves in Scandinavian Re, part of Insurance, together with US$ 90 million in portfolio write-downs that were booked in the fourth quarter of 2001. For the fourth quarter 2002, good premium income was offset by a write-down in marketable securities, resulting in a small loss.
Equity Ventures and the remaining Structured Finance businesses reported lower EBIT, as no new business is being written in either unit.
Building Systems posted a loss for the quarter of US$ 42 million, following further project write-downs and restructuring.
The loss from other activities was sharply reduced to US$ 59 million, mainly due to reduced write-downs in New Ventures.
Costs for Corporate decreased to US$ 88 million for the fourth quarter 2002. Reduced infrastructure costs and a one-time rebate on previously booked costs led to a small positive income for Headquarters/Stewardship. Research and development costs decreased following the successful reorganization of ABB’s global research centers earlier in the year.