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Alcatel boosts earnings
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February 3, 2000: 6:59 a.m. ET
Telecom equipment firm predicts 30% growth in 2000
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LONDON (CNNfn) - French telecom equipment firm Alcatel unveiled a 12 percent jump in fourth-quarter operating earnings and a five-for-one stock split Thursday. Chief executive Serge Tchuruk's bullish assessment of the company's prospects helped the stock price soar 10 percent.
Recent reports such as healthy 1999 earnings from cellular-phone giant Nokia had indicated the fourth-quarter statement might reveal some good news. Alcatel said operating income rose to 668 million euros ($650 million), helped by better profit and sales from its business and consumer unit, which makes products from mobile handsets to transmission gear and equipment for corporate call centers.
Fourth-quarter net income of 338 million euros ($331 million), or 1.79 euros per share, compared with 31 million euros, of 0.17 euros a share, a year earlier, when a major restructuring charge depressed earnings. Revenue in the quarter rose 9 percent to 7.67 billion euros.
For the full year Alcatel earned net income of 644 million euros, beating the consensus analyst forecast of 617 million euros. The previous year, substantial capital gains from the sale of assets boosted full-year net to 2.34 billion euros.
Tchuruk said in a statement that operating income is expected to grow 30 percent in 2000 as the operating profit margin rises to a targeted 6.5 percent from 5.5 percent in 1999. Sales growth is expected to be healthiest in the company's telecom equipment businesses, while units making energy transmission cables would grow more slowly.
Tchuruk also predicted the company would earn an operating profit in the first quarter, a period when it has traditionally recorded a loss.
Alcatel stock was up 10 percent in Paris at 242.5 euros. 
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Alcatel
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