Alcatel: Fixed line sales up, net profits down

27 Apr 2006

French equipment manufacturer Alcatel reported a 17.6% rise in revenues to EUR3.067 billion (USD3.81 billion) for the three months to 31 March 2006, driven by increased demand for fixed line products. The company’s operating profit rose from EUR107 million to EUR198 million, but net profits dipped 16% to EUR104 million from EUR124 million a year ago, as a result of higher tax charges.

Alcatel said growth at its fixed line unit was strong, particularly for IP, fibre-optic and network access lines in North America, while demand for wireless products was robust given the ‘highly competitive environment.’ Its operating margin, however, was 6.5%, disappointing some analysts, and its guidance for the next quarter also failed to impress.