Marconi’s troubles mount in wake of BT letdown

The UK’s troubled telecoms equipment manufacturer Marconi posted widening losses in the three months to 30 June 2005, in the wake of BT’s decision to exclude it from its GBP10 billion next-generation network upgrade programme. Marconi reported losses of GBP36 million, up from GBP11 million a year ago, largely relating to additional costs associated with a restructuring programme following BT’s decision. Revenues for the three-month period flat-lined at GBP285 million, compared with GBP289 million a year ago, but Marconi’s chief executive Mike Parton remained upbeat, saying that the company’s business had been ‘stabilised’, giving it the opportunity to ‘consider the best future from this stronger base’. Marconi’s management team has been rebuilding the vendor since 2001, reducing its debt and improving its operating results. Despite losing out with BT, at a cost of GBP50 million in lost sales in 2005 alone, it has recently signed equipment orders with Vodafone Italy, Cable & Wireless, Belgacom and E-Plus of Germany.