This is a good news:
Telecom-Gear Maker Alcatel Sees Return
01/14/2003 10:22:16 EST
Alcatel SA of France said Tuesday it expects to report stronger-than-expected revenue for fourth-quarter 2002 and projects returning to profitability in 2003 after two years of heavy losses.
The news sent Alacatel's American depositary shares surging nearly 16 percent, or 92 cents, to $6.74, in Tuesday morning trading on the New York Stock Exchange.
Alcatel, a leading global supplier of high-tech equipment for telecommunications, said it expects revenue growth in the fourth quarter of 2002 to be "in the high twenties percent" compared with the previous quarter, while its operating result for the period should be "around breakeven."
Previously, Alcatel had forecast a 20 percent sequential rise in fourth-quarter revenue and said it would only come out even by excluding items.
The company attributed the expected surge in revenue growth partly to sales of broadband equipment.
Dexia Securities telecom analyst Antoine de Montille called the update "the second sign of a rebound" in Alcatel shares, after the successful launch of a 630 million euros ($664.3 million) convertible bond issue last month.
Alcatel is in the process of a restructuring plan that will cut its work force to 60,000 at the end of this year, from 119,000 at the end of 2000.
To get the company back in the black in 2003, Chairman and Chief Executive Serge Tchuruk said Alcatel will focus on services, which accounts for 15 percent of revenue.
Alcatel also plans to sell noncore assets worth at least 1 billion euros ($1 billion) this year to shed debt, Tchuruk said. He declined to identify the assets to be sold. |
