Marconi pares losses but outlook uncertain

Struggling British telecoms equipment maker Marconi says half-year losses have narrowed from last year but its markets remain…

Struggling British telecoms equipment maker Marconi says half-year losses have narrowed from last year but its markets remain hard to predict.

Marconi, which had to sell units and cut 6,000 jobs after its markets deteriorated, said its operating loss for the six months ended September narrowed to £149 million sterling from £485 million a year ago, helped by rising sales.

Last month, Marconi reported its first quarterly sales growth in 18 months, but said it saw no early respite from the downturn that nearly led to its collapse.

"Our markets are still difficult to predict beyond the current quarter. However, I believe our optimism for the longer term looks increasingly justified," Chief executive Mr Mike Parton said in a statement today.

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Marconi shares closed at 540 pence yesterday.

The firm stunned shareholders in July 2001 when it said operating profits would halve due to an industry-wide downturn.

Its share price went into meltdown, and the company, once a pillar of British industry, had to enter a restructuring deal with its creditors.