Alcatel remains cautious despite healthy growth

Alcatel has announced a healthy increase in sales during the last year, as it completed its transformation to a purely telecoms company. Despite this, the company is keeping its feet on the ground and predicts a slowdown in sales for 2001.

  • E-Mail
By  James Thornton Published  February 1, 2001

Alcatel reported healthy results for 2000, and then promptly lowered its expectations for the coming year. The telecom equipment maker has announced a 36% growth in full year group sales at US$29.5 billion.

The net income for the year rose 106% to $1.25 billion, prompting Alcatel chief executive, Serge Tchuruk to describe 2000 as “a milestone year for Alcatel.” He also hailed the year as one where the company was transformed into a "purely telecom business".

Despite such encouraging results, concerns have grown in the market after Alcatel’s sales forecasts for 2001 were down.

The company announced it expects sales growth in its telecoms division to fall as much as five percent on previous predictions of 25% for the next year. Profit growth of between 30% and 40% is now Alcatel’s goal, compared to earlier estimates of growth at around 50%.

The reason for the easing up of growth was put down to slower spending in the US along with flat revenues in e-business globally.

Europe is currently Alcatel’s largest market, covering 50% of sales. Tchuruk does not anticipate any slowing in revenue growth in Europe in 2001, due to continued increase in demand for bandwidth. While the US market is expected to slow up, he predicts that the Asia/Pacific region should continue to be the fastest-growing market.

“Our broad product portfolio, well-balanced geographic diversity and focus on financially sound customers combine to create a solid platform upon which we can expand in a climate of market uncertainty,” said Tchuruk.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code