Alcatel's Shares Rise Against Falling Stock Market
Dow Jones Newswires
PARIS -- Shares in French telecommunications equipment group Alcatel SA
(ALA) are up early Wednesday on the Paris bourse, rising against a
falling overall market after the company released solid nine-month
revenue figures.
"The fall in revenues of the cable division was in line with
expectations, while the company did slightly better than forecasted in
telecommunications," said Christian Royer, a trader at IFF Bourse.
Nine-month revenue rose 2.4% to FRF93.2, from FRF91.0 for the same
period in 1997, the company said earlier Wednesday. Third-quarter
revenue totaled FRF30.7 billion, down from FRF31.0 billion from the same
time in 1997.
The company said third-quarter sales of its cables and components
division fell by 9.8%, while third-quarter sales of its
telecommunications division rose by 10.1%.
The stock stood at FRF577 at 1025 GMT, up 4.2%, or FRF23. The CAC-40
benchmark index was down 1.8%, or 62.91 points, at 3487.84 points.
Traders said although investors in Europe have given a thumbs-up to the
third-quarter and nine-month revenue figures, the test will come when
U.S. financial markets open. Alcatel ADRs trade at the New York Stock
Exchange.
"U.S. pension funds are now much more cautious with numbers out from
Alcatel," said a trader at Credit Lyonnais Securities brokerage house.
Traders noted that Alcatel continues to be under a cloud after it
surprised shareholders with a profit warning after reporting poor
first-half results Sept. 17. The shares fell 38% on the Paris stock
market that day. |
