$100 b loss for AOL Time Warner

NEW YORK: AOL Time Warner Inc. has posted a 2002

loss of nearly $100 billion, the largest annual loss in U.S.

corporate history. The company has  posted a fourth-quarter net loss

after taking a $45.5 billion non-cash charge for the decline in the value of its

embattled America Online business and other assets.

The company reported a net loss of $44.9 billion, or $10.04

a share, after the charge, compared to a year-ago loss of $1.8

billion, or 41 cents a share.

Strength in the company's film and entertainment business, with

hits like the "Lord of the Rings" sequel, and cable networks

offset the weakness at America Online, which has been suffering

from a sharp slowdown in advertising spending and subscriber

growth.

Another development is that media mogul Ted Turner would step down as vice

chairman. The company reported a fourth quarter net loss of $44.9 billion, or

$10.04 a share, after taking the non-cash charge to write down the value of its

embattled America Online business and other assets. That compared to a year-ago

loss of $1.8 billion, or 41 cents a share.

While analysts said overall operating numbers came in near expectations, some

expressed disappointment at the size of the charge -- which came on top of a $54

billion charge AOL took in the first quarter.

"The negative was the goodwill writedown of $45 billion, which was

bigger than expected, although their debt covenants are still safe because they

have to keep at least $50 billion in equity and they finished the year with

about $52 billion," said David Joyce, an analyst at Guzman & Co.

Shares of AOL fell to $13 in after-hours trade, after closing at $13.96 in

regular NYSE trade.

AOL Time Warner has sold its 8.4 percent stake in Hughes Electronics Corp. as

part of its efforts to cut its debt load. The company said it plans to reduce

total consolidated debt to approximately $20 billion by the end of 2004.

© Reuters