Marconi to cut more jobs

July 4, 2001 Posted: 1825 GMT

NEW YORK (CNNfn) -- British telecom equipment maker Marconi PLC announced Wednesday that it plans to cut 4,000 more jobs and said its operating profit would be halved this year in a tougher-than-expected market.

The company also said current-year sales would be 15 percent lower than last year. And Marconi said it expects to take a further exceptional charge of £150 million ($210.7 million) for the year to March 2002.

Marconi shares closed down 3 percent at 245.25 pence on Tuesday, after investment bank Morgan Stanley cut its price target for the group, amid slowing telecom sales worldwide.

The stock has fallen 65 percent this year and more than 80 percent from a high of 1,250 pence in September 2000. Marconi asked the London Stock Exchange Wednesday to suspend trading for its stock prior to the company's announcement. Telecom stocks across Europe, however, were hammered by fears of a Marconi profit warning, as the mood among shareholders soured.

The FTSE 100 index finished 0.7 percent lower at 5,600.5 in London on Wednesday.

-- from staff and wire reports

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