Telecoms equipment group Marconi has offered little sign of an immediate end to its woes after reporting a further sales slump.
Marconi, which completed financial restructuring in May, said tough trading conditions and weaker demand had reduced sales in the three months to June 30th by about 15 per cent on the previous quarter, to £367 million sterling.
Chief executive Mr Mike Parton also ruled out a significant recovery in sales in the current quarter, although he did report positive longer-term signals.
The company said cost savings achieved from reducing staff numbers by 805 during the three months to June 30th had been offset by the sales decline.
It has already warned that it intends to cut its workforce, standing at 14,735, to 13,000 by the end of March 2004.
Today's trading update showed group first-quarter sales fell from £430 million in the three months to March 31st and from £592 million a year earlier. The reduction was seen in all operating regions, with sales to Europe and the Middle East down 17 per cent on the previous quarter at £220 million.
However, Marconi pointed out that a number of its major European customers, including BT and Vodafone, had signalled their intention to increase expenditure, although this has not been translated into firm orders.
For the three months to September 30th, Marconi expects "flat to slightly increased" sales on the previous quarter. The figure a year earlier had been £514 million.
PA