Alcatel cuts expectations despite profitable 2000

French telecom equipment maker Alcatel has announced a 77 per cent year-on-year rise in profit but has still been moved to downgrade its forecasts for 2001.

Fourth-quarter profits rose 26 per cent to E426m (£270m), compared with E338m (£214m) for the same quarter the previous year. However, the company announced it expects sales growth in its telecoms division to fall as much as five per cent on earlier predictions of 25 per cent for the coming year. In a statement, Serge Tchuruk, CEO of Alcatel, added: "Alcatel's Telecom business will continue to expand even if a continually strengthening Euro could mechanically impact top line growth."