Feeds

Marconi stops taking in water

Shows signs of stability

  • alert
  • submit to reddit

Build a business case: developing custom apps

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

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.