Alcatel narrows losses thanks to heavy cost cuts

29 Apr 2003

French equipment supplier Alcatel [NYSE: ALA] today released its first quarter 2003 results, beating analyst’s expectations and narrowing its net loss to EUR461 million, from EUR836 million twelve months earlier. The company has put its improved performance down to a series of cost cutting measures undertaken during the past year, including scaling down its workforce from 120,000 to 60,000. Revenues, however, fell by 31% to EUR2.96 billion, a bigger drop than the 25%-30% that the company forecast in February, although it claims that this was down the impact of a significant currency exchange. According to chairman and chief executive Serge Tchuruk, Alcatel will reach its breakeven target before the end of 2003.