Shares in Ing C Olivetti & Co SpA slipped for the fourth day yesterday as industry analysts got wind of a further batch of bad news from the bundle of woe that is the Ivrean these days. Some London analysts downgraded their forecasts amid worries that the lossmaking company would need more provisions to bring its ravaged personal computer division back to health, Reuter reports. The shares closed 2.25% off at 1,042 lire and are down around 14% since last Thursday. One analyst at a major London broker said he had increased his forecast net loss for 1995 due to the strength of the lira in December and a light revenue line, reflecting the French transport strike and delayed sales of personal computers, so that he now expects a 1995 loss fo $822m. He expects further restructuring charges to enable the personal computer division to reach breakeven during 1996. He still believes Olivetti will return to the black in 1996, but cut his net profit forecast to $235m. The analyst did not want to be named due to the sensitive nature of Olivetti shares. Another London analyst, who has not changed his stance of avoid the stock since the company’s recent rights issue, said he was concerned over the personal computer business, thought to have lost $126m in 1994. It will take time, if ever, to put right, he asserted. Olivetti said the group did not intend to release any further financial details until its 1995 results due at the end of May, and said that its share price simply weakness reflected the current problems afflicting many technology stocks worldwide.
