Alcatel (ALA) and France Message Board

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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (3239)	4/27/2001 6:08:53 AM
From: elmatador	Read Replies (1) of 3891

...unlike Alcatel which is entirely focused on telecommunications. READ IT PLEASE!!! Lex: Siemens Published: April 26 2001 19:40GMT \| Last Updated: April 26 2001 19:46GMT The clunky old engineering businesses that were making big losses for Siemens a few years ago sprang to the company's rescue in the second quarter. Power generation, transport and medical performed well while the great hope for the future, mobile telephony, was barely profitable. The number of mobiles sold rose to 6.9m, prompting a claim from Siemens that it was ahead of Ericsson in the handset league. But in a business where you have to be called Nokia to show a profit, making number three is something of a hollow victory. Despite plans to cut more than 6,000 jobs, Siemens looks determined to sweat it out in the mobile market. It expects consolidation among the smaller players but views itself as a buyer rather than a seller. Its commitment to this strategy would be tested if losses continue. Siemens may be struggling but it does have a broad spread of activities, unlike Alcatel which is entirely focused on telecommunications. Handset sales fell by more than half to 2.4m in Alcatel's first quarter, contributing most of the E159m operating loss from its e-business division. Alcatel is responding by outsourcing manufacture and cutting back in weaker markets. But it is not adopting a purely defensive strategy, as its bid for the fibre-optics division of Lucent shows. The short-term outlook for telecoms remains uncertain. Siemens will not make a second half forecast while Alcatel has trimmed its sales and profit forecasts. For all the restructuring that is going on, a mobile revival is still a long way off.

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