PARIS (Reuters) - Alcatel should announce Tuesday morning an operating profit located between 525
and 600 million euros, with a median figure of 554 million, for the third quarter thanks to its good
performances in the networks and optics, according to questioned financial analysts'.
They say to await the precise details on the prospects for the French equipment supplier in the field of
optics after the movements caused by the decision of Nortel Networks to reduce its forecasts of sales.
The Alcatel title has (Paris: 13000.PA - topicality ) finished in rise from 4,26% to 73,50 euros Friday,
profiting, like the other values télécoms, of a rebound after the good results of the world leader of optical
components JDS Single-phase. The action Optronics reflection gained 7,94% to 70,70 euros but it moves
back of 16,82% compared to the course of introduction of 85 euros one week earlier.
The majority of the specialists in the sector judge that Alcatel made a success of its centring on its heart of
trade of the télécoms but they estimate that it has still progress to make to reach the levels of margin of its
principal competitors.
In spite of one quasi-doublement waited of the turnover compared to the third quarter 1999 (296 million
euros), the operating margin should represent between 6,9% and 8,57% of the turnover, waited between
7,0 and 7,36 billion euros against 5,26 milliars one year earlier.
Large actors like Nokia (Paris: 5838.PA - topicality ), Cisco or Nortel, display margins with two digits.
" the next building site, it is the operating margin. Alcatel can reach 10,5% to 11% of margin but in the
medium term ", underlines Christophe Forty, of KBC Securities.
It estimates that synergies are still possible between the subsidiary companies and ensures that the rise to power of Newbridge
Networks, asset at the beginning of the year, is not finished.
Over the third quarter, it counts on a turnover of 553 million euros for a turnover of 7,0 billion. For him, the networks and optics explain
this growth mainly.
An analyst of an American bank explains to him also the progression of the sales and of the results by optics but it stresses that they are
the systems more than of the components, whose weight remains marginal (200 million euros on a turnover of 3,5 billion for the segment
internet/optic and a total 13,81 billion in the first six-month period).
" I think that the figures will be good. The question is to know what they provide over the fourth quarter and beyond taking into
account the profit-warnings that one had in the United States ".
An analyst of a large French bank stresses that all the segments of Alcatel (networks, Internet and optics, undertaken and general public
like cables and components) are well directed. He tablie on a turnover of 600 million euros for sales of 7,0 billion and recalls that Alcatel
maintained its forecasts over the third quarter in spite of the difficulties encountered to differing degree by groups come Lucent, Nortel
or Ericsson.
John McPate, specialist in new technologies in Solomon Smith Barney, envisages an operational result of 536 million euros for sales of
7,1 billion. He notes that the group records usually a seasonal hollow in the third quarter before rebounding with the fourth.
At the more long-term, it estimates that optics represents the best growth appropriateness of the group in Europe. " We envisage an
annual growth from at least 30% for the optical segment. If they make less, it will be regarded as negative ".
Apart from optics, the specialists in the sector note that Alcatel gains successes in the mobile infrastructures, including for third
generation UMTS. The group was chosen by Orange (France Telecom group) at the sides of Nokia and Ericsson for a European
contract UMTS.
The group aims between 15 and 17% of the world market but competition will be sharp with Nortel, Ericsson and Nokia.
" the partnership of Alcatel with Fujitsu was determining. That their made it possible to fill their delay on competition ", explains an
analyst of a large French bank. |
