Marconi back in black: Q2 revenues up 9% |
|
|
Published
:
Sun, 27 Nov 2005 06:05
|
LONDON: Marconi Corporation, the telecoms equipment vendor yesterday reported a 9 percent rise in second quarter revenues at £312 million reflecting a turnaround from previous quarter’s loss of £6 million.
The earnings were close to expectations, with second quarter operating profits of £7 million, the company said. Most of its assets, such as its trademark and expertise in networking technology were sold to Ericsson. The remaining portion of the business will be renamed Telent.
On a six-month basis, revenues at £597m had appeared to remain steady when compared with last year’s, but the £31m losses were due to the huge job cuts announced after Marconi lost an important BT order. The job cuts meant restructuring costs of £29m and most analysts saw it as the beginning of long decline in the group’s fortunes.
According to a senior analyst the Q2 earnings reflected benefits from the cost reduction efforts.
The coming months will see the completion of the £1.2 billion Ericsson deal and the new entity Telent will provide services to telecom operators. The Swedish company would acquire about 75 percent of Marconi including a transfer of 6670 employees.
The company’s pension deficit on September 30 stood at £358 million rising about 64 percent from £230 million in March. The group said it will seek shareholders’ approval for filing financial reports on a half-yearly basis.
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
1449.80 |
+51.73 (
3.63 %)
|
| SYMBOL (
2008-12-02 ) |
| LAST |
CHANGE
|
|
CARNIVAL
(
11:35am )
|
|
1347.00 |
+51.00 (
4.02 %)
|
| SYMBOL (
2008-12-02 )
|
| LAST |
CHANGE
|
|
IBM
(
4:01pm ) |
|
79.84 |
+2.94 (
3.78 %)
|
| SYMBOL (
2008-12-02 )
|
| LAST |
CHANGE
|
|
GOOGLE
(
4:00pm ) |
|
275.11 |
+9.12 (
3.37 %)
|
|
|
Print this Story
Struggling Marconi likely to be acquired by Swedish Ericsson 