Telecoms equipment group Marconi, which employs more than 1,500 people in Coventry, has reported wider losses after first quarter sales slipped and the company embarked on more restructuring.
Marconi 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.
Marconi announced earlier this year that 450 jobs would go from its 1,600-strong workforce in Coventry. Further cuts were planned for its sites in Liverpool and north-west England.
The losses were among thousands of cuts over recent years. The company required a #4.7bn debt restructuring to stay afloat in 2003.
In the latest figures, as well as lower sales, the former GEC industrial giant started to book the cost of a restructuring launched after it failed to win a major contract from BT.
Marconi said consultation with trade unions and employee representatives was "progressing amicably" and that it expected the first job reductions to take place towards the end of its second quarter, which is in September.
Despite the tough conditions, Mr Parton said its order book remained healthy and that it had secured business wins for next generation products from customers including Cable & Wireless and Vodafone.
Sales to BT - still Marconi&apos;s biggest customer with 27% of all business - were stable on the previous quarter at #77 million.
Even though the failure to win the major BT contract is expected to cost #50 million in revenues, Marconi said it still expected full-year revenues to be at a level similar to a year earlier.