Italian fashion concern Benetton has reported consolidated revenues for 2004 of € 1.686 million (£1.20 million), in line with previous reports. Net income was estimated at 7,3 per cent of total revenues. Operational income was estimated at 12.8 per cent of the revenues.

Last week the fashion giant examined the preliminary consolidated results for 2004, as well as the consolidated forecast for 2005. An improved financial position of approximately € 440 million is represented by free cash flow valued at € 170 million. This improvement was achieved despite a tax payment of € 125 million.

The Benetton Board has given management a mandate, for the first half of 2005, to negotiate with the banks about a revolving line of credit, with a maximum of € 500 million.Furthermore, the Board has estimated consolidated revenues for 2005 between € 1.620 million and € 1.650 million. Net income for the coming year has been estimated at 6 per cent of the revenues.

The CEO of the Benetton Group, Silvano Cassano, said: "We have chosen to respond forcefully and decisively to a highly competitive market in the context of a very weak international economic scenario. We are concentrating with ever greater determination on the realisation of the Guide Lines 2004-2007, presented in December 2003, bringing forward and strengthening policies already provided for, aimed at reinforcing and increasing the cohesion of our network of commercial partners".