Marconi Takes $156.4M 4Q Loss
Hits targets in rescue plan, gives update on negotiations with banks and bondholders
April 25, 2002
TRADING UPDATE FOR THE THREE MONTHS ENDED 31 MARCH 2002
Core sales £813 million; 4th quarter seasonal uplift lesspronounced than last year as previously indicated
Reduced operating loss in the Core compared to previousquarter, £108 million
Positive operating cash flow £204 million in the Core due toimproved working capital
New management team has achieved the targets set inSeptember:
Core business operating expenses at end of 4th quarterconsistent with £1 billion annualised target
All major Capital business disposals completed; cashproceeds over £1.5 billion since September includingMedical Systems, over £680 million during 4th quarter
Net debt £2.9 billion well within the previously statedtarget range £2.7 billion - £3.2 billion; Cash balanceof £1.4 billion
Second Half operating exceptional costs expected in the rangeof £700 million to £800 million; net non-operatingexceptional gains c. £700 million
Restructuring discussions underway on the basis of theGroup's revised business plan; Marconi Board has agreed thatit will give certain undertakings to its banks andbondholders
BXR 48000 developed to schedule; currently in trials with USFederal Government and BTexact Technologies.http://www.marconi.com/html/news/tradingupdateforthethreemonthsended31march2002.htm
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