Alcatel swings to profit in Q2

PARIS: Alcatel, one of the largest telecoms equipment suppliers in Europe, reported a move into net profit amid improved prospects in all its key markets.

Alcatel made a net profit of 23 million euros ($27.69 million) for the three months to June 30, reversing last year's net loss of 675 million euros.

The French company, which has been slowly recovering from savage cuts in telecoms spending over the past three years, said it had benefited from strong growth in the United States and China.

It forecast like-for-like sales to grow by over 10 percent in the third quarter year on year -- at constant euro/dollar exchange rates -- with positive earnings per share before goodwill close to the level reported for the second quarter.

It reiterated its guidance of high single digit growth for the full year at constant exchange rates.

Second-quarter sales, which excluded the spun-off fibre-optics business, were lifted to 3.078 billion from 2.967 billion last year.

Alcatel is benefiting from an acceleration of investment in broadband Internet access and recovery of demand for corporate telecommunications services.

It said "the good underlying performance in cellular infrastructure ... should result in a substantial increase in revenues in the second half" and added that it expected "significant growth in fixed communications for the rest of the year".