Alcatel Revenues Rise to EUR 3.289 Billion

Alcatel reported Q3 2005 revenue of EUR 3.289 billion, an increase of 8.8% over the same period last year at a current EUR/USD exchange rate. Operating profit was EUR 278 million, an 8.5% operating margin. Net income (group share) was EUR 266 million, with EPS at EUR 0.19, including EUR 0.07 of net one-time capital gains. However, citing higher investment costs in its mobile division and weaker sales in China, Alcatel trimmed its margin target for the year.

Serge Tchuruk, Chairman and CEO, said: “We were particularly pleased to see our fixed communication revenues start increasing again, as anticipated, reversing a four year decline. Also satisfactory was the continuation of our strong performance in mobile communications where revenues grew by 22%, way above the market for the fifth consecutive quarter. At the same time, the revenues of the private communications business were down by 3% year over year as a weak satellite market offset gains in enterprise and transport.”

Some highlights:

Segment Breakdown	Third Qtr	Third Qtr	Second Qtr
In EUR million	2005	2004	2005

Revenues
Fixed Communications	1,282	1,203	1,224
Mobile Communications	1,092	893	958
Private Communications	928	957	981
Other & Eliminations	(13)	(29)	(18)
Total	3,289	3,024	3,145
Operating Profit
Fixed Communications	121	184	120
Mobile Communications	116	119	115
Private Communications	64	92	59
Other & Eliminations	(23)	(23)	(31)
Total	278	372	263