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To: 2MAR$ who wrote (3474)	7/5/2001 1:14:40 PM
From: keithcray	Read Replies (1) \| Respond to of 208838

I was just thinking--->she's gonna be really mad when she wakes up. yikes!

To: 2MAR$ who wrote (3474)	7/5/2001 1:17:33 PM
From: 2MAR$	Respond to of 208838

DJ Alcatel Dn-2: Co Seen To Further Cut 2001-2002 Estimates By Elena Molinari Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Shares of telecom equipment maker Alcatel SA (ALA) fell Thursday to a new low following Marconi PLC's (MONI) announcement that sales for the year ending March 31 could drop by 15%, causing operating profit to fall by as much as 50%. Investors no longer believe that the profit warning issued by Alcatel in May - when Alcatel said it would post a net loss of EUR3 billion for the second quarter - tells the whole story about the hardships the French company is facing, and they expect it to lower its forecasts for the whole year. They anticipate Alcatel will revise its annual forecasts when it releases its first-half results on July 26, mainly due to an overcapacity in the European telecom sector. "Although Alcatel has made some positive announcements about a pickup in demand, we won't see any positive effects before the end of the year," said Brantley Thompson with J.P. Morgan in London. Alcatel said Thursday it has received a contract to supply mobile phone network equipment to Norwegian operator Telenor ASA. Market watchers also wonder whether to read the reported reduction by $1 billion in Alcatel's offer for Lucent Technologies Inc.'s (LU) fiber optic business as another sign of the company's woes. Thursday, the French paper La Tribune reported that Alcatel is now offering $3 billion in cash, reduced from an earlier bid by the French equipment maker of more than $4 billion. The market is reading every announcement from telecom equipment companies as an indication that more bad news is on the way, said David Seban Jeauter of ABN AMRO in Paris. "The sentiment is very bad. Marconi and Alcatel will have to prove that the outlook in Europe is still good," he added. But that is not the case, according to Goldman Sachs Cos.' Sean Faughnan in London. "The expected second-half recovery has gone out of the window," he said. "Networks operators will just keep squeeze as much as possible from their existing networks, and won't increase their spending." Therefore, he would be "astonished" if Alcatel didn't reduce its year revenue and profit estimates. As to the bid for Lucent's division, Faughnan, like other analysts, worries that a $3 billion cash outflow may be hard for the company to digest. "Alcatel's balance sheet is not facing particular problems right now" he said, "Nonetheless, $3 billion in cash is still a big figure." Shares in Alcatel were recently trading at $17.53, down $3.47, or 16.3%, on volume of 2.5 million compared with average daily volume of 1.9 million. Earlier, the stock fell as far as $17.01, surpassing the previous low of $19.51 on June 27. -By Elena Molinari, Dow Jones Newswires; 201-938-4047; elena.molinari@dowjones.com (END) DOW JONES NEWS 07-05-01 01:16 PM * end of story *