British telecoms equipment maker Marconi Plc announced a further 4,000 job cuts on Wednesday and said operating profits would halve this year as its financially stretched customers reined in orders.
After an extraordinary day-long suspension of its stock, Marconi said after the market closed that its first quarter had been tougher than it had anticipated less than two months ago.
"What we've seen in the last 10 weeks is a very, very significant slowing in Europe," Chief Executive George Simpson said on a conference call. "People have just turned the capital equipment tap off."
Sales for the year to end-March 2002 would be down 15 per cent on last year and operating profits before exceptional items would halve, the company said in a trading update.
Marconi expects to break even on operating profits in the first half and report a stronger second half.
"Clearly the numbers are going to be massively down this year. It's a huge profit warning," said telecoms analyst Marcus Nash of investment bank Morgan Stanley. Mr Nash had been expecting Marconi revenues to slide five per cent this year.
Marconi said the latest round of job cuts would be worldwide and include 1,000 management posts.
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