Sales boost for Marconi
Telecoms equipment group Marconi today unveiled a 5% lift in third-quarter sales, but said margins this year would be towards the lower end of expectations.
The group, which completed a life-saving financial restructuring in 2003, said sales in the three months to December 31 had risen to £330m (€479.5m) from £314m (€456m) in the same period the year before at constant currencies.
Marconi said growth in the UK and Germany had driven a continued improvement in its key optical and access telecommunications networks business, where year-on-year sales lifted 14% on the back of a number of big contract wins.
However, the group revised its 2005 outlook, saying it expected adjusted gross margin for the full year 2005 to be towards the lower end of a 33%-34% range, with mid-single digit sales growth at constant currencies.
Chief executive Mike Parton said the company was pleased with the progress it had made in winning “significant” new business and driving top line growth in tough trading conditions.
“Pipeline opportunities give us confidence that we can continue to grow sales against a backdrop of fierce pricing pressure in a competitive market,” he said.
