Alcatel doubles quarterly profit, raises forecast

28th July 2005, Comments 0 comments

PARIS, July 28 (AFP) - French telecommunications equipment manufacturer Alcatel said on Thursday that it had doubled second-quarter net profit and revised upwards its forecast for performance in the whole of 2005.

PARIS, July 28 (AFP) - French telecommunications equipment manufacturer Alcatel said on Thursday that it had doubled second-quarter net profit and revised upwards its forecast for performance in the whole of 2005.

Net profit in the second quarter rose by 104 percent from the equivalent figure last year to EUR 196 million.

Operating profit totalled EUR 263 million representing 8.4 percent of sales, the group, which had been hard hit during the high-tech slump, said.

The price of shares in the group was showing a gain of 4.24 percent to EUR 10.08 in initial trading. The CAC 40 index of leading French shares had advanced by 0.75 percent to 4,466.80 points.

The company said that sales in the second quarter had risen by 8.5 percent to EUR 3.145 billion, confirming figures published previously.

Company president and chief executive Serge Tchuruk said in a statement that the group had raised its forecast for revenue growth for the whole of the year to 5.0-8.0 percent from 3.0-5.0 percent.

Alcatel also raised its expectations of net profit this year, saying that it expected it to grow by about 40 percent, giving earnings per share of about EUR 0.60. Until now the company had forecast that net profit would rise by 10.0 percent.

Alcatel revised upwards its forecast for performance in the third quarter as well, saying it expected revenue to grow by 5.0-7.0 percent from the equivalent figure last year on a basis of a constant euro/dollar exchange rate.

Sales in the fixed-line telecommunications sector fell by 6.2 percent to EUR 1.224 billion from EUR 1.304 billion.

Finance director Jean-Pascal Beaufret told a telephone press conference that in the mobile telephone sector, the main driving force behind the group's performance, sales in the second quarter had totalled EUR 958 million, a rise of 34.6 percent from EUR 712 million in the second quarter of last year.

Revenue from the sector for equipment for private communications rose by 6.5 percent to EUR 981 million from EUR 921 million.

Copyright AFP

Subject: French news

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