Yarn and fabric producer Olcese SpA has posted an operating loss of EUR19.2 million for full-year 2003, narrowed from a loss of EUR21.8m a year earlier.

The Italian company, which is in the process of restructuring, also reported a drop in turnover to EUR79.2m for the year, down from EUR126.4m in 2002.

Olcese is currently considering a merger with local wool yarn producer Raumer, based on a deal signed in January.