Ing C Olivetti & Co SpA has now totted up its figures for 1993 and finds that consolidated losses came to the equivalent of $272m, down from $381m last time. Turnover was up 7% at $5,100m. It was particularly hard hit in its home market of Italy, but reckons that if early signs of a recovery for 1994 are confirmed, it should meet its target of breaking even this year at operating level, before tax and any extraordinary revenue or costs. The operating loss in 1993 was $121.1m, down from $134m in 1992. The company plans to replenish its coffers with the issue of up to 250m common shares reserved for conversion of a forthcoming convertible bond issue to be made by Olivetti International SA. Market trends are still not positive, especially in Europe, chairman Carlo De Benedetti warned. Analysts commented that the company’s debt was already surprisingly high. The debt is quite considerably worse than expected, Tony Morrongiello, an analyst with Carnegie Securities, told Reuters: After last June’s capital increase they should have been able to halve the debt level, but they haven’t. Olivetti raised $530m of new capital on the market last year and the new cash call represents the equivalent of a one-for-five rights issue, estimated to represent some $380m. The company will need large amounts of cash to invest in its new Omnitel-Prono Italia cellular television franchise, but says the new money is not specifically earmarked for construction of that system.
