Marconi says restructuring nearly complete

Struggling telecoms equipment maker Marconi has said its two years of financial turmoil are nearly over, but has warned that …

Struggling telecoms equipment maker Marconi has said its two years of financial turmoil are nearly over, but has warned that markets for its products and services continue to decline.

The once mighty blue chip conglomerate brought low by an ill-timed move into telecoms equipment, said core sales fell seven per cent to £426 million sterling in its fourth quarter to March 31st compared with the previous three months.

However, core gross margins before exceptional items rose to around 24 per cent from 22 per cent in the third quarter.

"The markets for our products and services continue to decline, but we have been able to limit our sales fall to single figure percentages in each of the last three quarters," chief executive Mr Mike Parton said in a trading update.

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"With our financial restructuring almost behind us the business is well placed for any market upturn," he added.

Formerly known as GEC, Marconi said last month that 90 per cent of its creditors were in favour of plans to refinance £4 billion of debt and that it expected to complete a restructuring of its business by May 19th.