Feeds

Marconi stops taking in water

Shows signs of stability

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Marconi has reported second quarter results in line with reduced expectations, giving some signs of stability at the end of an 'Annus Horribilis' for the struggling telecoms manufacturer.

The firm reported an operating profit of £5 million for its second quarter ending September 30, compared to a loss of £227 million in its first quarter. Q2 sales came in at £1,444 million, down 24 per cent on the £1,899 million for the same quarter last year.

In July, Marconi suspended its shares ahead of a profit warning and collapse in its share value (trading at 26.5p today against a high of £12.50 in August 2000) that eventually forced chairman Sir Roger Hurn and chief exec Lord Simpson to quit. Mike Parton, former head of Marconi's networks division, has become chief executive and is overseeing Marconi's cost reduction and restructuring program, which it reports is progressing well.

During September, a further 630 employees left Marconi as part of the Company's cost reduction programme, bringing the total number of workers left the firm to 6,600 (1,625 of these workers were transferred to Jabil Circuit but were most were made redundant). The restructuring plan calls for the loss of 12,000 jobs in total.

In a statement, Marconi said market conditions remain difficult and it was not able to give sales or operating profit guidance for the full year.

However the firm reiterated its target of reducing the operating costs in its core business by £1 billion per annum and reducing its net debt to between £2.7 billion and £3.2 billion by March 2002.

On 10 October, Marconi received US regulatory approval for the disposal of its Medical Systems business to Philips. This transaction remains subject to European Union regulatory approval. ®

Related Stories

Marconi and Nortel forced to pull out of Formula One
Marconi shares 'worthless'
Marconi saga ends as Hurn and Simpson quit
Marconi boardroom genocide on cards
Moody's Blues knacker Marconi shares
Marconi AGM kicks off; Simpson holds firm
Oracle aided Marconi collapse
Marconi drops even further; everyone suffers
Massive fall-out from Marconi share collapse

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
Stop ROBOT exploitation, cry striking Foxconn workers
HP downturn and automation eroding overtime on China's production lines
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.