Feeds

Marconi loses £5bn on grim trading

Debt reductions

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Troubled telecoms equipment manufacturer Marconi has reaffirmed its intentions to reduce its debt mountain to between £2.7 billion and £3.2 billion by the end of March 2002.

Publishing its interim results today there was little good news to cheer the hearts of investors who've seen Marconi's share price fall more than 90 per cent in the last year.

Marconi made a first half pre-tax loss of £5.1 billion on H1 turnover of £2.6 billion.

The Group's net debt rose significantly to £4.3 billion at the end of September - up more than £1 billion in six months - as a result of worsening trading performance.

In a grim statement the company said that trading conditions in the first half of the year were extremely difficult, with "unprecedented declines in spending on network infrastructure among customers in most geographic markets".

And in a bleak outlook, the company said it was unable to give any guidance concerning sales and operating profit for the full financial year.

Still, Marconi is hell-bent on cutting overheads in a bid to slash debt and see itself through this difficult time. It claims operating costs were down 12 per cent in Q2 compared to Q1 and recorded positive operating cash flow during the three months to September.

In a statement, Mike Parton, chief exec, said: "The new management team is fully engaged repositioning Marconi and beginning to improve performance.

"Our specific focus is on cost reduction and cash generation and we can report some early progress," he said.

Shares in Marconi were down 1.1p (3.54 per cent) at 30p in early morning trading. ®

Related Stories

Marconi stops taking in water
Marconi and Nortel forced to pull out of Formula One
Marconi shares 'worthless'

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
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.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.