Alcatel reported Q4 sales of EUR 4.508 billion, up 28% compared to the previous quarter, but down 33% from the EUR 6.766 billion in Q4 2001. Alcatel cited seasonality as well as strong advances in broadband and mobile infrastructure for the gains. Sales for Q4 were up sequentially across all of Alcatel’s business segments and in all geographic regions. Income from operations was EUR 20 million but there was a net loss of EUR 1.1 billion due primarily to restructuring charges. Some highlights:
- Revenue for carrier networking equipment rose sequentially by 40.5% to EUR 2.417 billion due primarily to a high level of DSL sales in Europe and in China, as well as mobile network sales.
- Gross margins in Q4 were 27.3%
- During 2002, Alcatel reduced its breakeven level of quarterly sales by more than EUR 2.0 billion to reach EUR 4.1 billion at the end of 2002. The company plans to reduce the quarterly sales breakeven target to EUR 3.0 billion by year-end.
- Employee headcount was 77,000 at the end of 2002, compared to 101,000 at the end of 2001.
- The company anticipates further cuts to 60,000 employees at the end of 2003.
- Geographically, Western Europe accounts for 43% of revenues, Eastern Europe 7%, North America 18%, Asia 19% and the rest of the world 13%.
- Alcatel’s outlook for 2003 calls for revenues to be down 15% year-on-year due to the strong EUR and the lower level in world demand for telecommunications equipment.
- Sales for Q1 2003 are expected to be down 25% to 30% compared with Q1 2002.
- Alcatel expects to reach its operating breakeven target in 2003.
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