Struggling Midlands telecoms equipment group Marconi yesterday said its business had now stabilised despite posting wider first quarter losses.
Marconi, which is already axing some 450 jobs at its base in Coventry, said losses from continuing operations stood at £ 36 million in the three months to June 30, higher than the £11 million seen a year earlier.
Revenues of £285 million were down by £4 million, but chief executive Mike Parton said the performance had been "solid" in a competitive market, and that he stuck by previous guidance given for full-year results.
"We remain committed to maximising shareholder value and positioning the business for a successful long-term future," he said.
As well as lower sales, the former GEC industrial giant has started to book the cost of a restructuring launched after it failed to win a major contract from BT.
It announced in May that it was intending to cut 800 jobs - mainly at its Liverpool and Coventry operations - after its biggest customer chose eight overseas-based companies for work on a £10 billion project to upgrade its network.
Marconi said consultation with the trade unions and its employee representatives was " progressing amicably" and that it expected that the first job reductions to take place towards the end of its second quarter, which is in September.
It added it continued to target business cost reductions as part of attempts to counter ongoing price pressures.
Marconi has cut thousands of jobs in recent years and required a £4.7 billion debt restructuring to stay afloat in 2003.