NOV 01] MARCONI NEWS
No Good News Expected From Marconi
are bracing themselves for more bad news when Marconi releases
its interim financial results tomorrow.
analysts expect the company's depressing financial performance
to continue. A pre-tax loss of £898 million is predicted,
compared with a previous profit of £276 million.
its last financial statements issued a few weeks ago Marconi
painted a slightly brighter picture with positive cash flow and
the sale of its Medical
Systems business to Philips.
analysts still believe its plan to cut net debt to around £2.7
billion by March next year is overoptimistic and likely to be
are also now predicting that the company will suffer from
increased competition from other telecommunications companies
through cutting back on its R & D programme.
Williams de Broe, have stated:
if the company is successful in cutting net debt to around £3
billion by end-March, it will still leave Marconi in a very
all probability, the shares are worthless, but this will not
become apparent for some time."
As part of its
programme of debt reduction Marconi has agreed a deal to sell 12
unneeded properties in the UK for £66.8 million.
This sale has
brought the company's debt level down to around £3.5 billion.
Its target is to reduce the debt burden down to between £2.7
billion and £3.2 billion by the end of March 2002.
In a separate
deal, St Modwen Properties, a regeneration-based property
company, announced that it had paid £33 million through its 50
per cent owned subsidiary, to buy six industrial estates, three
office properties and two sports grounds from Marconi.
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