Reply #8: Alcatel slips on downbeat news from Lucent

[ozymandius]

Alcatel on Tuesday said that second quarter sales rose in line with expectations but its shares fell after Lucent, with which it has agreed a merger, reported falling sales and earnings that missed analysts' forecasts.

Alcatel said that revenues in the second quarter rose 7.5 per cent over the same period last year to €3.38bn. The operating margin, including a 0.3 per cent impact from an exceptional gain from a disposal of fixed assets, fell from about 8.3 per cent to 8 per cent.

The French company also confirmed that its merger with US rival Lucent was on track, including the level of cost synergies expected to be achieved as the two telecoms equipment companies combine to create the world's biggest network infrastructure supplier.

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