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ABB CFO resigns
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December 10, 2001: 11:30 a.m. ET
Industrial engineering giant sees shares fall amid concerns over rising asbestos costs
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LONDON (CNN) - ABB's chief financial officer resigned on Monday as the company's share price slipped on concerns over higher costs of asbestos liabilities.
Renato Fassbird, who joined ABB in 1990, is leaving Europe's largest industrial engineering group after four years as CFO. He will become the chief executive officer of a private Swiss trading company.
Fassbird will be replaced in mid-2002 by Peter Voser, currently CFO at Shell Worldwide Oil Products.
The resignation comes just weeks after the surprise announcement that ABB's long-time chairman, Percy Barnevik, has stepped down after criticism over the company's poor earnings and stock price, which has plunged more than 60 percent this year.
Shares in ABB fell another 10 percent on Monday, following a 40 percent plunge Friday in the stock price of its U.S. rival Halliburton after it reported mounting claims for asbestos damages.
ABB is facing similar asbestos liabilities stemming from its now defunct U.S. unit Combustion Engineering Inc. In October, ABB reported that cash settlements were running 9 percent above 2000 and new claims up 34 percent.
The company has reserves of $590 million for asbestos-related claims and ABB says it can recover $160 million from insurance companies.
In October, ABB reported that nine-month sales were up 4 percent to $16.9 billion, slightly above expectations, while net income fell 76 percent to $289 million, just below forecasts.
ABB also warned that 2001 operating income would fall 10 percent due to the global economic slowdown.
The company employs 160,000 people in Europe, the U.S. and Asia. Last month, ABB said it would cut 12,000 staff positions by late 2002. That's in addition to more than 2,000 jobs already eliminated.
ABB's shares fell to 17.40 Swiss francs on Monday in Zurich, down from a year high of 44.50 franc.
Reuters contributed to this report. 
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