Alcatel warns of slowing mobile handset sales
By Maija Pesola
Published: March 8 2001 08:32GMT | Last Updated: March 8 2001 10:30GMT
Alcatel, the French telecommunications equipment manufacturer, on Thursday gave one of
the first clear signs that the US economic slowdown is spreading to the European telecoms
market, when it revealed that its mobile handset sales had slowed in the first quarter.
Alcatel said handset sales, which represent 7 per cent of total group revenues, had
deteriorated year-on-year due to excess inventory as well as general market slowdown.
The company said, however, that due to strong growth in its networking and optics
businesses, first-quarter revenue growth would be close to the levels previously forecast.
Full-year sales growth was also expected to be in line with previous forecasts of about 20 per
cent, and Alcatel said it would implement a cost-cutting program to reduce the impact of the
falling handset sales on operating income.
The statement by Alcatel is one of the first clear signals that the European telecoms market
is experiencing the same problems that have hit Motorola in the US.
Although Nokia hinted in January of market uncertainty for mobile handsets by issuing lower
sales forecasts than analysts expected, European mobile companies have up to now
remained publicly upbeat about growth prospects.
Shares in Alcatel fell 2.4 per cent to E45.60 in morning trade.
www.ft.com |
