PARIS-Alcatel Alsthom witnessed improved sales for the third quarter, although its net income was low compared with the same period a year ago. Alcatel’s mobile infrastructure business also bounced up in sales from last year.
The company’s net sales stood at $3.8 billion for the third quarter, a 3-percent increase from $3.4 billion in the year-ago period. In the second quarter, the figure was $3.6 billion.
Income from operations was $345.7 million compared with $$219 million a year ago. The company’s net income was $107 million, a sharp drop from the year-ago figure of $362 million, although it improved sequentially as it had a net income of $29 million in the previous quarter.
In its mobile business, it had revenue of $1.14 billion compared with $889 million in the same quarter last year, citing accelerated demand for products across all business lines. Its income, however, fell to $131.3 million for the quarter from the figure of $136 million in the third quarter of 2003.
“Alcatel registered a solid performance in the third quarter,” said Serge Tchuruk, chairman and chief executive officer of the company. “In a competitive environment, our current business model involves substantial investments in business development, which are directed where potential is clearly attractive to Alcatel and where market buildup costs remain compatible with our gross margin target of around 38 percent for the full year 2004.”
