Alcatel hedges its bets on operating profit

Tchuruk tries to soften the blow...

French telecoms equipment maker Alcatel predicts its attempt to make an operating profit for the financial year will be challenged by the current economic climate. This is a climbdown from earlier predictions and investors responded by selling their stock. Reuters quoted the company's share price dipping by as much as 12 per cent through the day, but it ended slightly higher, losing only 7 per cent on the previous day's trading. Tchuruk told an investor conference: "As far as operating income goes, we hope to report a positive result this year, but the market is not helping us."