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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (2162)	7/22/2000 11:00:16 AM
From: Maple Leaf	Read Replies (1) \| Respond to of 3891

RE: spinoff from Yahoo Alcatel back in black, plans spinoff by: ala3838 7/21/00 7:48 pm Msg: 6822 of 6829 PARIS--Alcatel, a European maker of phone equipment, returned to a profit in the first quarter as it benefited from demand for Internet-related products. The company said it plans to sell shares in the energy cables division. Alcatel posted net income of 258 million euros ($230.3 million), or 1.31 euros ($1.17) per share, up from a loss of 18 million euros ($16.1 million), or 0.1 euro (9 cents) per share, a year ago. Sales in the quarter rose 42 percent to 6.1 billion euros ($5.5 billion). Alcatel has spent $9 billion on acquisitions in the booming markets for data networking and Internet access since a September 1998 warning that it would miss profit targets, which sent its shares plunging. The purchases, including Xylan, will help drive a 30 percent gain in telecommunications sales this year, Alcatel said, raising an earlier forecast for growth in the midteens. "There are only good surprises here--and we had learned to brace for bad ones in the past," said Jacques-Antoine Bretteil at International Capital Gestion. "Alcatel has solid grounding to ensure strong growth." Energy cables IPO To better compete with rivals Ericsson and Lucent Technologies, Alcatel has been narrowing its focus. An initial share sale of the energy cables and components division, representing annual sales of 4 billion euros ($3.6 billion), would turn Alcatel into a "pure play" telecommunications company, it said. In cables, Alcatel said it's second to Pirelli, which is buying the energy transmission unit of Kentucky-based General Cable for $216 million. Alcatel aims for a sale before the end of 2000, and the company will not keep a stake in the operation, senior executive vice president Jean-Pierre Halbron said. Prior to the sale, it will absorb some activities from the division, including the fiber-optics and submarine systems businesses that account for about 3.3 billion euros ($3 million) in revenues, Halbron said. "The cable spinoff is great news that the markets have been clamoring for," said Eric Burkel, an analyst at Handelsbanken Markets. "This very strong quarter bodes well for an excellent year--Newbridge will be the icing on the cake." --------------------------------------------------------------------------------