|
Alcatel beats forecasts
|
 |
September 9, 1999: 7:26 a.m. ET
Drop in 1st-half net smaller than expected; improvement expected
|
LONDON (CNNfn) - French telecom equipment maker Alcatel exceeded expectations Thursday by reporting a smaller-than-expected dip in first-half profit.
Alcatel, which spun off its Alstom (PALS) engineering arm last year, reported a net profit of 220 million euros ($234 million) and forecast a "substantial" increase in operating profit for the year as it continues its restructuring program.
The company posted a 2.32 billion euro net profit in the same period last year, including a one-time gain of 2.13 billion.
Sales climbed 7.5 percent to 1.09 billion euros while operating profit slid 11.4 percent to 310 million euros.
The result beat forecasts, and Alcatel (PCGE) shares were the second most heavily traded in Paris, advancing 2.9 percent to 140.90 euros.
The group's Internet and fiber unit reported a 28 percent surge in sales, although its net profit slid 35 percent following heavy research and development spending. Telecom cables was the most stable business segment following strong demand for its underwater equipment. 
|
|
|
|
|
|
Alcatel
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
