Alcatel Q3 loss worsens but debt reduced

Telecom equipment maker Alcatel had a third quarter loss of €1.35bn, partly due to large restructuring charges and provisions.

However, it announced it is managing to reduce its debt and forecast its net debt would be below €2bn before the end of the year.

This is lower than a forecast of €2.6bn in debt by the end of 2002.

Its revenues for the quarter were €3.51bn, 37.5% down on the same quarter last year.

Its operating loss was €227m, only marginally down from the previous third quarter.

The company said that it hoped to be profitable on sales by mid-2003, though the CEO said that there appeared to be little sign of a rebound in demand.

Alcatel is suffering in particular from a downturn in demand in the optics sector.

It hopes to take advantage of a recovery in the Asian markets and in a demand for equipment in the broadband internet sector.