Shake-up, not break up; Marconi is facing major reorganisation.Byline: BY TONY McDONOUGH McDonough is the name of several places in the United States:
MARCONI chief executive Mike Parton par·ton n. Any of the point particles believed to be a constituent of hadrons, now known as quarks. No longer in technical use. [part(icle) + -on1.] yesterday denied he was planning to break up the company following its failure to win a share of pounds 10bn BT contract. The telecoms equipment maker, which two weeks ago announced it was closing its Liverpool Edge Lane plant with the loss of 300 jobs, said not getting the work would cost it pounds 50m in lost revenues this year. A total of 600 people work at Edge Lane and it is planned to move the remaining 300 employees to the firm's Chorley plant. The reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet is leading to 800 job losses from a UK workforce of 4,300 but Mr Parton insisted a break-up was not on the agenda. He said: 'The way we have organised the company, we have not done it to break up the company. That isn't our plan. 'We have done it because what we wanted to do was make the cost reductions we needed with impacting research and development investment.' Marconi also said yesterday it was experiencing 'fierce' pricing pressures overall, as it posted annual results and outlined the financial impact of the BT disappointment for the first time As well as the pounds 50m reduction expected in this financial year from BT equipment sales and services, Marconi put the one-off cost of a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). needed to tackle the contract failure at around pounds 55m. It hopes the overhaul will save the company in the region of pounds 50m in the long term. Marconi went on to warn that margins were likely to come under pressure this year as it faced up to a competitive market and a changing business mix. Despite the blow from BT, Marconi said high levels of customer interest meant it still expected to achieve revenues at a similar level to last year. In the year to March 31, Marconi announced sales from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of pounds 1.27bn, slightly up on a year earlier, while margins rose to 31.9% from 29.5% in 2004. Bottom-line losses narrowed to pounds 27m, from pounds 171m. Today's results show BT continued to be Marconi's biggest customer, generating around 25% of current sales with total revenues of pounds 322m. Other key clients included Vodafone and Deutsche Telekom CAPTION(S): Mike Parton |
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