Marconi Q2 says revenue up 9 percent on first quarter

28 Nov, 2005

British telecoms equipment maker Marconi Corp Plc said on Friday its second-quarter revenue had risen 9 percent on the first quarter and its outlook was in line with its expectations.
Marconi said revenue for the three months to September 30 was 312 million pounds ($538 million), producing an adjusted profit from operations for the period of 7 million pounds, compared with a loss of 6 million pounds in the first quarter.
The group said first-half revenue was 597 million pounds, in line with last year, and posted a loss from operations of 31 million pounds, mainly driven by restructuring costs of 29 million pounds.
Last month, Swedish rival Ericsson, the world's top maker of mobile phone network equipment, agreed to buy the bulk of the Marconi business for 16.8 billion Swedish crowns ($2.1 billion).
After the completion of the deal, expected by year-end, the remainder of Marconi will take the name Telent and will provide services to telecoms operators and other companies.
Marconi said its pension scheme deficit at the end of September was 358 million pounds, compared with 230 million pounds at the end of March, due to a reduction in the discount rate used for its UK plan.
Telent will retain Marconi's UK pension scheme.
The group said it will move to filing its financial reports on a half yearly basis, subject to approval from shareholders. Shares in Marconi, named after Italian radio pioneer Guglielmo Marconi, closed at 384-3/4 pence on Thursday, valuing the group at around 807 million pounds.

Read Comments