Alcatel 2Q06 results

Net profit was down 8% to €180m and operating profit at €263m. Sales rose 7.6% to €3.4bn while operating margin came below 8%. Growth is mainly driven by broadband Internet equipment growth, while intense price competition in the competitive wireless infrastructure business hit margins. NA was a growth area with +40% in reveneus and China reported a 20% increase in sales. Segment breakdown gives the following figure: €1.4bn in fixed communications (+11%); €1bn in Mobile (+5%); and €1bn in Private (+5.5%).

Alcatel saw the overall global market for equipment sold to carriers growing around 5% in 2006.