British telecom equipment maker Marconi has reported a first-half pre-tax loss of £5.12 billion sterling.
Speaking at this morning’s announcement, chief executive Mr Mike Parton blamed "extremely difficult" trading conditions in the first half of the year, with unprecedented declines in spending on network infrastructure among customers in most geographic markets, for the losses.
Group sales for the six months to September 30th, 2001, amounted to £2.5 billion, representing a fall of 19 per cent. Sales of its core business were £1.5 billion, a drop of 25 per cent compared with the first half of last year.
Gross profit before exceptional items at group level was £674 million, a gross margin of 26.1 per cent. Gross profit before exceptional items was £386 million, giving a gross margin of 24.4 per cent.
The group also reported an operating loss of £222 million, comprising an operating loss £227 million in the first quarter and an operating profit of £5 million in the second quarter.
This compares to an operating profit of £320 million in the corresponding period last year. The group’s net debt was £4.2 billion.
Marconi’s stock, which has plunged over 95 per cent since the start of the year, lost nearly 10 per cent of its value in early trade this morning but later recovered to stand at 29.9 pence, nearly 5 per cent lower.