Alcatel forecasts telecom equipment sector decline in 2003

Alcatel posted a fourth-quarter operating profit of €20m. However, for the year 2002 sales were down at €16.55bn from €25.35bn in 2001 and its forecast for the year 2003 were gloomy.

It predicted a first-quarter sales decline of 25% to 30% and a 15% sales drop across the sector for 2003.

Alcatel said that the demand for telecom equipment was soft and its sales were being hit by the strength of the euro against the dollar. It said that for the year overall it hoped to break even and expected to do this by rigorous cost cutting.

Alcatel says that it is considering selling its loss making optical components unit. The unit’s net losses last year were €418.8m.