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Alcatel sounds a cautious note on prospects

With the release of lower-than-expected first quarter earnings, Alcatel has cut its growth forecast for the rest of the year.

By Mark Graham

Published: 26 April 2001 14:29 BST

The French telecoms equipment maker's profits slid 19 per cent in the first quarter to E210m (£131m). However, total revenue rose 21 per cent to E7.4bn (£4.6bn).

Company CEO Serge Tchuruk said: "Poor visibility dictates that we sound a cautious note about the industry's short-term prospects. The unfavourable US economic context is continuing."

Alcatel has now outsourced the European manufacturing of its GSM handsets to Singapore-based electronics manufacturing company Flextronics. Flextronics has acquired the assets of Alcatel's Laval manufacturing plant and 830 Alcatel employees have also been transferred.

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