Newspaper article THE JOURNAL RECORD

Wang Executive Foresees Profitability

Newspaper article THE JOURNAL RECORD

Wang Executive Foresees Profitability

Article excerpt

Wang Executive Foresees Profitability

BOSTON _ Losses continue to plague Wang Laboratories Inc., but its top executive said Wednesday he is confident the company will be profitable after emerging from bankruptcy. An amended reorganization plan to be filed Thursday in U.S. Bankruptcy Court projects revenue of $955 million and net income of $26 million for the 12 months beginning Oct. 1. "We believe these are absolutely makeable numbers," said Chief Executive Officer Joseph Tucci. For the fiscal year that ended June 30, Wang lost nearly $200 million, including $30 million to $40 million in the fourth quarter, the company estimated in the plan. Revenue was $1.24 billion, down from a peak of $3 billion in 1988 before its collapse. Wang, a prominent maker of minicomputers before entering bankruptcy last August, expects to emerge in September with a focus on software and services. The company will change its fiscal calendar to an Oct. 1 start. Foreign Investment Loss Revised

WASHINGTON _ Foreign investment in the United States slowed last year, but not as sharply as first thought, the Commerce Department said Wednesday. Foreign investors pumped just $2.4 billion into the United States in 1992, down from $11.5 billion in 1991, $45.1 billion in 1990 and a peak of $67.9 billion in 1989. In March, the department reported that direct investment by foreigners was a negative $3.9 billion, indicating that they actually liquidated U.S. holdings for the first time in decades. But a department official, commenting on the release of a new department study of foreign direct investment, said the 1992 figure had been revised to a positive $2.4 billion.

In the report, the department attributed the early-'90s slowdown in foreign investment to the recession and slow recovery in the United States, which made investment less attractive. The decline in stock and real estate values in Japan crimped the ability of Japanese banks to invest in the United States. And the reunification of Germany sharply raised the demand for investment funds, cutting the amount available for investing abroad. …

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