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

To: zbyslaw owczarczyk who wrote (2941)	1/31/2001 2:08:28 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 3891

Fourth Quarter and Full Year 2000 Results: Annual Telecom Sales Increase 41% and Income from Operations Up 83% - Net Income Doubles Paris, January 31, 2001 - The Board of Directors of Alcatel (Paris: CGEP.PA and NYSE: ALA) yesterday approved consolidated accounts for the year 2000. The company today reported fourth quarter and full year 2000 results. Full year 2000 total group sales amounted to EUR 31,408 million, an expansion of 36% over 1999. Income from operations totaled EUR 2,251 million, up 77% from EUR 1,275 a year earlier. Telecom sales advanced by 41% to EUR 26,788 million, while income from operations grew more than twice as fast (83%) to EUR 2,082 million. Net income increased by 106% to EUR 1,324 million, representing a diluted "A" share EPS of EUR 1.20 per share ($1.13 per ADS), versus 1999 net income of EUR 644 million, or EUR 0.69 per share ($0.65 per ADS). Fourth quarter group sales were EUR 9,689 million, up 26% over the corresponding period a year earlier, while income from operations grew by 32% to EUR 881 million. Telecom sales increased by 31% compared to the fourth quarter of 1999, to EUR 8,505 million. Telecom income from operations came in at EUR 832 million, a progression of 41%. Net income amounted to EUR 426 million for a diluted EPS of EUR 0.36 per "A" share ($0.34 per ADS) compared with fourth quarter 1999 net income of EUR 338 million, or EUR 0.36 per share ($0.34 per ADS). Serge Tchuruk, CEO, said, "2000 was a milestone year for Alcatel. We largely completed our transformation into a pure Telecom business, and I would like to focus my comments on this area of our overall activities. We established and surpassed important benchmarks. Our sales increased well above the overall market rate. In addition, we grew income from operations more than twice as fast as sales. Alcatel's success centered on our world-leading positions in broadband data solutions, submarine and terrestrial optical networking, and on Alcatel's unique ability to offer its world-wide customers complete end-to-end network design, implementation and management services." "Last year's performance is reflected in the final quarter's 31% growth over a seasonally very strong 4th quarter in 1999. Alcatel's Telecom business will continue to expand even if a continually strengthening Euro could mechanically impact top line growth. Thanks to our leading broadband access positions and our growing momentum in Optics, we expect to continue making advances in what will probably be a slower growing US market, at least during the first half. Our largest market, Europe, which accounts for over 50% of our sales, should grow at about the same rate as last year as bandwidth demand increases both in access and backbone networks. Asia/Pacific should be our fastest growing market as we are aggressively developing our positions across our entire product portfolio. Our broad product portfolio, well-balanced geographic diversity and focus on financially sound customers combine to create a solid platform upon which we can expand in a climate of market uncertainty." "There is still much improvement to achieve in relation to the group's working capital position. With respect to Receivables, which decreased from 37% to 34% of annual sales, we have made good progress not only in terms of amount but also quality, as we booked negligible reserves against vendor financing. We clearly have more to do, however, as far as Inventories are concerned. We are now implementing our previously announced internal project whereby we will reduce inventories by $2 billion, based upon current sales levels, between now and the end of 2002." "Alcatel is maintaining its forecast that 2001 revenue will increase above the market rate. Current indications show that, at present Euro/dollar exchange rates (0.93), annual revenue in our Telecom business should grow in the 20% to 25% range with our operating income continuing to grow around twice as fast. EPS should grow between 30% and 40%. The first quarter of 2001 should see year-on-year Telecom sales progressing by around 25% based on the existing strong order backlog, with income from operations growing at a faster rate. Strong performances in Carrier Networking and Optics will be somewhat offset by relatively flat revenues in our Space & Components and e-Business divisions globally."..................................... alcatel.com