graphic
graphic  
graphic
News > International
graphic
Alcatel to shed 10,000 jobs
graphic October 31, 2001: 3:23 a.m. ET

French telecom equipment maker posts Q3 loss, expects red ink for full year
graphic
graphic graphic
graphic
graphic
graphic       graphic
  • Alcatel may make loss - Sep. 5, 2001
  •  
    graphic
    graphic
    graphic       graphic
  • Alcatel
  •  
    graphic
    LONDON (CNN) - Alcatel, Europe's fourth-largest telephone equipment maker, said on Wednesday it would cut 10,000 jobs as it posted third-quarter losses.

    Alactel, like its rivals Ericsson and Lucent Technologies, has been hit hard by a sharp downturn in demand from telecom operators for wireless and internet technology as the global economy teeters on the brink of a possible recession.

    "The industry is suffering from over supply," said Martin Heath, a telecoms analyst at KPMG Consulting. "Acatel and Cisco have geared themselves up for 60 percent to 80 percent revenue growth, when in fact they can expect to achieve 20 percent growth and many are having a problem with that target."

    Alactel has already announced plans to axe 23,000 posts, taking the total to 33,000, or about a third of its workforce.

      graphic
    The French company posted a loss of graphic558 million ($506 million), or 49 cents a share in the three months to September 30, compared with profit of graphic297 million, or 25 cents, in the same period a year earlier.

    Its operating loss was graphic215 million, versus profit of graphic619 million. Analysts polled by Reuters had expected an operating loss of graphic185 million and a net loss of graphic309 million.

    Third-quarter sales fell to graphic5.6 billion from graphic6.8 billion a year earlier. Alcatel blamed the 18 percent drop on the "severe" U.S. downturn.

    Paris-based Alcatel expects to post a fourth-quarter operating loss of about the same size and a full-year net loss of about graphic5 billion.

    The company said 2001 sales would be "only a few percent off from 2000" and 2001 operating income would be "not that far off from breakeven." It plans the cost of restructuring it business and jobs losses to total graphic1.2 billion.

    Alcatel stock, which has gained around 20 percent this month amid a pick-up in sentiment over telecoms, but shed around five percent on Tuesday was little changed at graphic15.70. graphic

      RELATED STORIES

    Alcatel may make loss - Sep. 5, 2001

      RELATED SITES

    Alcatel





    graphic graphic

    graphic