Marconi remains under intense pressure

Marconi’s latest financial figures have revealed a picture of declining sales for the troubled telecommunications technology company.

The firm, which has recently undergone a radical and highly complex restructuring programme, continues to face what was described as a “very tough” set of market conditions.

Marconi expect sales in its first financial quarter, April to June this year, to be under £400 million, down on the company’s last financial quarter performance of £426 million.

As a result the company, which employs 5,000 workers in the UK, announced that it would be further reducing its total worldwide workforce to 13,000.

Reporting a pre-tax loss of £599 million in the year up to March 2003, Marconi’s losses were down from £674 million in the previous accounting year. However, sales fell by 32% to £1.87 billion, down from £2.78 million on the previous financial year, a performance that Marconi attributed to “the result of significantly lower levels of capital expenditure by public network operators worldwide”.

Though the company reported that a cost cutting programme meant that the sales target from the next financial year had been reduced from £1.7 billion to £1.5 billion for the company to reach break-even point.

Commenting on the past year, John Devaney, Chairman of Marconi Corporation, said: "The successful completion of the financial restructuring was a watershed for the business. It enables us to look forward with greater optimism than at any time since the downturn in our markets started two years ago."

Mike Parton, Marconi’s Chief Executive, said the company had continued to make “operational progress quarter on quarter” in core business.

He said that this had been achieved during the final quarter as a result of improving margins and falling costs: “This is a tangible demonstration that the actions we are taking to return the business to operational health are working. Our markets remain very tough and we will continue to take the actions necessary to build on this improved operational performance."

The company predicted that the current tough marking conditions looked set to continue.

The restructured Marconi saw its shares re-introduced to the London Stock Exchange earlier in May.

The complex restructuring plan reduced the company’s external debt by £808 million to £3.9 billion.


Related UK National News Stories
Click here for the latest headlines.

03 June 2003
Emergency lighting dims as British Energy reports £4.29bn loss
British Energy has announced dismal pre-tax losses of £4.29 billion for the year ending March 2003 - compared to £493 million losses in 2001-2002.
16 October 2009
Gun Crime And Rape Blights London
Figures just released show that crime in London is at its lowest level in ten years, with further reductions since last year. However, residential burglary, gun crime and the number of rapes are rising which has taken the shine of the otherwise excellent statistics.
29 August 2003
Royal Mail first class reliability rises
First Class mail reliability has reached its highest levels since the summer of 1998, rising throughout the first quarter of the financial year to reach more than 93% in June. Figures released today for April to June show improvements to all Royal Mail services. First class quality of service rose throughout the quarter to reach 93.2%.
12 June 2003
BMI British Midland to axe 1,500 jobs
BMI British Midland Airways, one of the UK’s largest airlines, has said that falling demand will mean that the company will shed up to 1,500 jobs within the next four years. The airline will axe the jobs as part of a cost-cutting exercise under ‘Project Blue Sky’, a restructuring plan introduced to bring the company - which reported a £19.
02 April 2004
Marks & Spencer poised to axe 1,000 jobs
Under restructuring plans announced on Friday, Marks & Spencer is to axe around 1,000 jobs following a review of head office operations and the financial services division. The company said the decision formed a "major part of Marks & Spencer's ongoing plan to accelerate business transformation".