Posted by : trraju on Oct 30, 2003 - 12:17 PM General

PARIS (AP) - French telecommunications equipment maker Alcatel SA said Thursday that cost-cutting and strong demand for broadband Internet equipment helped it slash net losses to Ç284 million (US$331 million) in the third quarter from Ç1.35 billion a year earlier.
Alcatel chairman and chief executive Serge Tchuruk said the results had been boosted by strong revenues from the company's broadband, mobile networks and railway equipment businesses.

The latest figures ``confirm encouraging indications of our return to profitability,'' Tchuruk said.

The company also said it had swung back into an operating profit of Ç160 million (US$187 million) in the third quarter after losing Ç227 million in the same period of 2002. Analysts had expected an operating profit of Ç75 million (US$87 million).

Losses per share narrowed to Ç0.23 (US$0.27) for the quarter, from Ç1.13 last year.

Quarterly revenue was Ç3.04 billion (US$3.55 billion), below analysts' expectations of Ç3.15 billion (US$3.67 billion) and the Ç3.51 billion posted in the year-earlier quarter.

Alcatel is in the midst of a restructuring program which Tchuruk said Thursday would yield ``further economies of scale'' in the future.

The company earlier this year announced it was cutting 650 jobs at Alcatel Space in response to a slump in demand for satellites.

Tchuruk said he was sticking by the earlier forecast of a net earnings break-even in the fourth quarter, before goodwill, restructuring and exceptional items.

The company's gross margin stood at 35.6 percent and its operating margin at 5.3 percent. Net cash position was Ç541 million (US$631 million).