SPACE WIRE
Bull returns to profit in 2003
PARIS (AFP) Mar 31, 2004
Troubled French computer company Bull said Wednesday it returned to profit last year and that it was confident of receiving European Union approval for its restructuring plan backed by 517 million euros (635 million dollars) from the French state.

Bull reported net earnings of 4.1 million euros in 2003 after a loss of 548 million in 2002. Sales fell 16 percent to 1.26 billion euros from 1.5 billion in 2002.

The group added in a statement that it was confident the state aid it is to receive conforms to EU regulations as well as "of a speedy examination of its case by the European Commission in order to have a formal decision in a maximum of six months."

Earlier in the day trading in Bull shares was suspended at the request of the company ahead of the announcement of its results.

"We customarily suspend our share before this type of announcement, to avoid speculation," she said.

A spokesman for Euronext Paris, which manages the stock market here, later said trading in Bull shares would be resumed at the opening of the market on Thursday morning.

The company's recapitalization plan calls for state aid of 517 million euros this year for restructuring of the debt-laden company and is being studied by European Union authorities.

The state aid would allow Bull to reimburse the state for its 450-million-euro rescue package -- plus interest -- which the company benefited from in 2001 and 2002. The European Commission objected to the rescue.

Under the recapitalization plan, Bull would recuperate the state financing as restructuring aid.

The French finance ministry said earlier in the month it had notified the European Commission, the EU executive arm, in late February of proposed new aid for the troubled computer firm but said the assistance would be part of a refinancing plan announced last December.

Bull, which employs about 8,000 people, has enormous debts. The main shareholders are state-controlled France Telecom, Japan's NEC and US group Motorola, each with 16.9 percent, the French state with a direct 16.3 percent and Dai Nippon Printing with 5.3 percent.

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