Alcatel reports better than expected Q2 profit
PARIS, July 27 (Reuters) - French telecoms equipment maker Alcatel , France's third
biggest company by market capitalisation, on Thursday reported better-than-expected
second quarter operating profit thanks to strong growth in telecoms markets.
Alcatel's second quarter operating profit came in at 638 million euros, up from 465
million in the same period last year, outpacing analyst forecasts in a Reuters survey
which ranged from 530 million to 555 million euros.
Sales at Alcatel's four telecoms sectors -- networking, Internet and optics, corporate and retail clients and telecoms components
-- rose 37 percent, helping to boost overall sales by 33 percent to 7.687 billion euros.
Alcatel said sales at its telecoms divisions should rise by 35 percent for the full year and maintained its forecast for operating
profit to climb twice as fast as sales.
The company's second quarter net income rose to 344 million euros from 240 million, bumping up its diluted earnings per share
by 23 percent to 0.32 euros.
Alcatel unveiled an aggressive new focus on telecoms in May, pledging to spin off its energy cables business, square up to
networking heavyweight Cisco Systems (NasdaqNM:CSCO - news) and to re-cast itself as a player focused on its fast growth
data business.
``The strategic repositioning of Alcatel is paying off. Our order backlog continues to increase with major wins in fast Internet
access, optics and mobile communications, and evolving carrier networks,'' Alcatel CEO Serge Tchuruk said.
Alcatel also said it would create a new class of shares, or ``tracking stocks'', in its optical components division.
Alcatel said the new class of shares should boost the market value of its optronics division and increase Alcatel's ability to
exploit strategic opportunities while still maintaining control of the unit. |
