French telecommunication equipment maker Alcatel SA said on Thursday it will restructure the company in light of its sluggish first quarter financial report and expectations of slower sales in the telecommunication sector for the year.
Net income for the quarter ending 31 March was 210 million euros ($US188 million), down from 258 million euros in the year-ago quarter, Alcatel said in a statement. In the all-important telecommunication sector, quarterly net income rose 6 per cent year on year, from 79 million euros to 84 million euros.
The company reported a 21 per cent year-on-year increase in net sales for the quarter, from 6.1 billion euros to 7.4 billion euros. Telecommunication equipment sales in the first quarter increased to 6.2 billion euros, up 24 per cent compared to last year, the company said.
But Alcatel warned that it was revising its forecast for the year in light of current market uncertainties. The company now expects revenue from its telecommunication business to grow between 5 per cent and 15 per cent for the year, compared to its previous forecast of 20 per cent growth in the sector, Alcatel said.
As a result of its lowered expectations, the company will be accelerating the streamlining of its operations, Alcatel said.