Changes in reporting and additional information
As a result of recent changes in ABB's divisional structure and the qualification of its Oil, Gas and Petrochemicals division as discontinued operations, ABB has modified the way it presents some financial information and included some additional comparative information in this press release. The intention is to allow comparisons and set the stage for the reporting structure that ABB will implement for its first quarter 2003 results, due for release in April.
New and former divisions
ABB announced in its 2002 third-quarter results that it streamlined its divisional structure. Two new core divisions were created: Power Technologies, which combined the former Power Technology Products and Utilities divisions, and Automation Technologies, which combined the former Automation Technology Products and Industries divisions.
In addition to showing its 2002 results according to the old structure, ABB provides both full-year and fourth-quarter 2002 results using the new division structure on a pro forma basis (see tables from page 35 onward). The company will report its first quarter 2003 results using only data from the new division structure.
Following the sale of most of its Structured Finance activities to GE Commercial Finance of the U.S. last year, ABB will no longer report the Financial Services business as a separate division nor provide a separate balance sheet for these activities.
During the preparation of year-end accounts, ABB's Oil, Gas and Petrochemicals (OGP) activities have qualified to be reported as discontinued operations following ABB's decision to divest this business in 2003. Discontinued operations also includes losses of ABB's U.S. subsidiary Combustion Engineering (CE), the Structured Finance activities sold to GE Commercial Finance, the divested metering business and other smaller abandoned and sold units.
Combustion Engineering is now treated for accounting purposes as though it already had filed for the pre-packaged Chapter 11 in the U.S. bankruptcy court by December 31, 2002.
Non-core activities and Corporate
Non-core activities comprise Equity Ventures, the remaining parts of Structured Finance not sold to GE Commercial Finance, Insurance, Building Systems and Other activities (mainly Group Processes and New Ventures). Corporate consists of Headquarters/Stewardship, Research and Development and Other
(Consolidation, treasury services and real estate). EBIT figures covering the full years 2001, 2002, and the four quarterly results for 2002 are presented in the Appendix (page 37).