Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: zbyslaw owczarczyk who wrote (3221)	4/24/2001 5:40:22 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 3891

Alcatel 1st-Quarter Operating Profit Seen Rising 12%: Outlook By Jad Mouawad Paris, April 24 (Bloomberg) -- The following is the outlook for Alcatel SA, Europe's fourth-biggest phone-equipment maker, which reports first-quarter earnings on April 26. Expected Earnings: Alcatel is expected to report first-quarter earnings before interest and taxes rose 12 percent to 126 million euros ($114 million), from 113 million euros in the year-earlier period, according to the average estimate of six analysts polled by Bloomberg News. Estimates ranged between 162 million euros and 105 million. Sales in the quarter are expected to grow 16 percent to 7.12 billion euros from 6.12 billion euros in 2000, the poll showed. Alcatel is expected to book gains from the sale of its stake in Alstom SA in February. Time: The Paris-based company will report earnings before the beginning of French trading on Thursday. Behind the Numbers: Alcatel is expected to be hurt by losses at its mobile phone unit where sales have dropped sharply in recent months. The decline, however, is expected to be offset by rising demand for the company's networking and optical gear. Chief Executive Serge Tchuruk has said he expected sales to grow at the low end of his 20 to 25 percent forecast as a slowing U.S. economy has prompted phone companies to reduce spending on telecommunication equipment in recent months. Since 1998, Tchuruk has pushed Alcatel into the U.S. market to compete against companies such as Lucent Technologies Inc. and Nortel Networks Corp. Alcatel has spent about $16 billion on acquisitions since then, including Xylan Corp. and Canada's Newbridge Networks Corp. After it sells its cable unit all of Alcatel's revenue will be telecom-related, compared with 35 percent in 1995. What the Experts Say: ``The U.S. market isn't too good, so people will be looking at what the outlook for Europe is going to be,'' said Denis Servaes, an analyst at Cordius Asset Management who has an ``add'' rating on Alcatel shares.'' ``In ADSL (high-speed Internet access), Alcatel has a strong card to play, especially in Europe, where the market is lagging the U.S.,'' said Servaes. ``In the optics unit, I expect a 20 percent growth rate, boosted especially in Europe.'' ``In wireless phones, although matters aren't as dramatic as at Royal Philips Electronics NV, I expect Alcatel to eventually form a joint venture with someone'' or sell the unit, he said. Previous Market Reaction: Alcatel shares rose 7.9 percent to 63.75 euros on Jan. 31, after the company reported fourth-quarter profit rose 26 percent to 426 million euros or 36 cents a share. Market Performance: Shares of Alcatel have dropped 43 percent since the beginning of the year compared with a 9 percent decline on Paris's benchmark CAC 40 index.