Marconi sales up despite tough trading

Telecoms equipment maker Marconi has said its second-quarter sales were up 6% on the preceding quarter, but down on last year. It has warned of tough times facing the sector.

Chief Executive Mike Parton said in a statement "Whilst we remain cautious about the shorter term outlook, we are confident for the company's and industry's long term prospects".

Marconi is rebuilding business slowly after a near collapse, said it was targeting stable sales in the traditionally weaker third quarter on the back of recent orders and stronger demand for fixed wireless-access equipment in Germany.

The company's sales were up 6% on the first quarter when Marconi reported sales of £367m

(€526m).

The firm, which had been forced to sell units and cut 6,000 jobs, said sales in the second quarter to September 30 stood at £389m (€557m), down £125m (€179m ) for the same period last year.

The company said second-quarter sales were helped by a strong performance in the United States, notably in sales to the government.

Marconi's shares closed yesterday 1.7% down at £4.67 (€6.69).