Feeds

Alcatel posts record loss

Looks to Q2 recovery

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Alcatel expects a recovery in its business after reporting a record loss today.

The French telecommunications posted a Q4 net loss of euro 1,498 million compared with a net income of euro 426 million in the same quarter a year earlier. Group sales for Q4 were euro 6,766 million, down 20 percent over pro-forma sales of euro 8,505 million from Q4 2000.

Alcatel lost euro 368 million from its operations after euro 397 million of inventory write offs.

For the full year, group sales came out at euro 25,353 million, down 5 percent compared to 2000 pro-forma sales of euro 26,788 million. Annual net loss in 2001 was euro 4,963 million (slightly below analyst's expectations), compared to net income of euro 1,324 million recorded during the previous year.

Carrier networking, optical, e-business and space segments of Alcatel's operations were all down but the company is in better shape after reducing its debt and going through a painful restructuring process. Around a third of Alcatel's workers, or 33,000 people, have lost their jobs and the firms is planning to sell a number of its factories.

The slowdown on telecomms spending by debt ladened telcos has hit equipment manufacturers hard, but Alcatel predicts the market will recover by the middle of this year.

Serge Tchuruk, Alcatel's chief executive, said it expected its first quarter will be "weak with market softness compounding the usual seasonal effect". Compared to the fourth quarter of 2001 which was up 20 percent sequentially, Alcatel expects first quarter 2002 sales to decline by around 30 percent.

Injecting a note of optimism, Tchuruk added "even if markets remain soft, from the second quarter on we see sequential growth in quarterly sales and income from operations, with the full year income from operations turning positive." ®

External links

Alcatel - Q4 2001 results

Related Stories

Alcatel guillotines 10,000 jobs
Merde! Alcatel posts massive loss
Alcatel slashes 300 UK jobs
Alcatel ditches its fabs
Alcatel gets rid of ADSL modem business
Lucent jilts Alcatel at the Altar

Remote control for virtualized desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.