In contrast to the lusty performance of ICL last year – much better than that of any of the US mainframe companies and better than all its continental siblings apart perhaps from Siemens Data Systems, Group Bull SA yesterday reported a net loss equivalent to $46.8m for 1989 compared with a profit last time of $53.1m on turnover up just 4% at $5,729m. The figures do not include any contribution from the Zenith Data Systems acquisition, and the loss was caused by a $70.9m charge for the cost of the planned reduction by 1,200 of the company’s 45,000 worldwide workforce this year. The acquisition of 69% of Honeywell Information Systems puts Bull in the happy position of doing 62.6% of its business outside France. When Zenith is factored in, turnover rises to $7,227m, split approximately 30% in the US, 30% in France and 33% in the rest of Europe, leaving 7% for the rest of the world – mainly the old French colonies in Africa, and Far Eastern business. For the current year, the company looks for modest profit on a small increase in turnover. The company, which benefitted from a $169m capital increase in 1989 – courtesy of the French government – to fund its acquisition of Zenith, plans to increase capital expenditure 11% to $350m this year. Research and development expenditure is budgeted to go up 8.1% to $700m. Geographically, the company has high hopes for expansion from its initiatives in opening for business in India, Brazil and Eastern Europe – like the inhabitants of those parts, it prefers to call it central Europe.
