Marconi sales slide again

THE PAIN is continuing at Marconi, the restructured telecoms technology business, as it reported tumbling sales in the first quarter of its financial year.

Having warned in May that sales would come in below £400m for the three months to the end of June, the company disappointed investors by reporting sales of only £367m , compared with £426m in the previous quarter.

Chief executive Mike Parton attempted to put a brave face on the weaker demand. 'Our markets remained very difficult during the quarter but there are positive signs that give us confidence for the longer term,' he said.

'For the first time in over two years, many large network operators are beginning to forecast increases in capital expenditure but it will take time for these plans to flow through into orders and sales.'

Marconi shares were relisted in May after a massive reconstruction in which investors in the old Marconi were all but wiped out when £3.9bn of debt was swapped for equity.

The company was forced into huge restructuring after posting losses of £6.3bn in the 2001-02 year after the helter-skelter telecoms technology expansion of ousted bosses Lord Simpson and John Mayo.

Since the shares relisted they have traded in a narrow band between 54p and 72p, opening today 67 3/4p.

In May the company announced yet another 500 job cuts, taking the total to 24,000 in less than two years.