Alcatel narrows 4Q losses

5 Feb 2004

Alcatel has reported a narrowing of its losses in the fourth quarter of 2003 as a number of implemented cost cutting measures took effect. Net loss for the three months to 31 December shrank to EUR524 million, from EUR1.12 billion the year before, but was still bigger than the EUR325.5 million predicted by analysts. The dollar’s decline against the euro hurt Alcatel’s sales in the period, which fell 14% to EUR3.77 billion, but was partially offset by the sale of EUR600 million-worth of assets, improved revenue collection and staffing reductions; the vendor cut around 16,000 jobs in 2003. The loss also included EUR525 million in provisions for restructuring and EUR210 million of goodwill amortisation.