Steve- For a look at their reported net income loss in 99Q1 see this slide at:
alcatel.com
To add further confusion, check out this slide at:
alcatel.com
Apparently they may be using the same conversion rate of 1 EUR = .9574 USD for comparing both 1999 and 2000 results? If so, I'm at a loss as to why they would do this. But let's say they did use your referenced May 1999 figure of 1 EUR = 1.08 USD, this certainly would not account for their reported 42% growth versus what I see as 4% growth(per MS Investor).
As I study this further, I'm afraid it may be coming down to differing accounting/reporting standards between France and US GAAP.
As to your comments about investing in ADR's of foreign based companies, you hit the nail on the head as to the risk of doing this- currency conversions. And as you say, it works both ways and depends upon how you look at it. In general investors don't like uncertainty, and currency conversions add another element that has to be taken into account.
Wasn't it Sony that just warned about an earnings miss due to the strengthening yen? If(of which I have my doubts it will anytime soon) the euro swings the other way, then it won't be good for ALA euro reported figures. But now, with a weakening euro, it makes their yr/yr comparisons look better AND makes them more price competitive against US based companies. Of course this only applies if the foreign based company generates substantial sales and competes in the US marketplace.
I'm very surprised the analysts that get paid for doing this sort of thing, have not come out with a report that would explain the numbers better for US Alcatel investors. I'm still waiting for MS Investor to report 00Q1 on their website. I'm sure they must be as confused as I am when doing the simple top line(not to mention bottom line) comparisons in USD.
If you, or anyone else, have another url that reports historic quarterly results, please let me know. I rely on MS Investor so much, I haven't bookmarked any other sites that do so. -MikeM(From Florida) |
