Alcatel reports second quarter results

Alcatel’s Board of Directors have reviewed and approved second quarter 2004 results for the company.

Sales were registered at €3,078m compared with €2,967m in the second quarter 2003, up 3.7% and 7.2% at constant €/USD (with an average €/USD rate of 1.20 in Q2).

The gross margin was 38.3% of sales compared to 31.8 % in the second quarter last year.

On a comparable basis (in accordance with the new R&D accounting presentation as of Q1), the gross margin increased by 5.5 points year on year. Income from operations amounted to €190m, a 6.2% return on sales, with all business segments positive, compared with €12m in the same period last year.

Net income pre-goodwill for the quarter was registered at €125m or diluted €0.09 per share (USD 0.11 per ADS) and net income after goodwill at €23m or diluted €0.02 per share (USD 0.02 per ADS).

Serge Tchuruk, Chairman and CEO said: “Current trends clearly signal a confirmation of our growth potential for the year, whether materializing in revenues (up over 7% year on year in the second quarter at constant €/USD), or in order intake, pointing to an acceleration of growth in the second part of the year.

“In addition to the good underlying performance in cellular infrastructure, which should result in a substantial increase in revenues in the second half, and also to the continued strength in private communications, the second quarter highlighted the validity of two other key strategic directions.”