Feeds

Alcatel posts record loss

Looks to Q2 recovery

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.