4 billion and we will even try to do better

Except for coup de theatre, Alcatel and Lucent have presented yesterday, for the last time, their results as independent companies. The merger of the two telecom equipment is indeed expected "from here the end of the year", or "somewhere current November", said Serge Tchuruk, CEO of Alcatel.

The future entity is still awaiting the green light from the United States Committee on investments abroad (CFIUS) with that "discussions are continuing." "In terms of appointment of the management and operational organisation, we are almost ready," said the CEO. We are also extremely uncomfortable with our goal of generating synergies by year EUR 1.4 billion, and we will even try to do better.

The next two months menu looks loaded: in addition to the merger with Lucent, Alcatel finalize the takeover of Nortel's UMTS assets and transfer its satellites and Thales security activities. Because of these changes in perimeter, no forecast of results has been given for the fourth quarter.

In the meantime, the French manufacturer saw its net income blend of 42 in the third quarter (to 155 million euros). The operating margin contracted by 0.7 points over a year (at 7.7), but remained stable compared to the previous quarter, which reassured investors. However, turnover has increased by 1.4 (at 3.33 billion), where Alcatel anticipated growth "around 5. It has particularly suffered from pressure on prices exerted by competitors such as Ericsson in mobile networks. After progress 25 per cent these past two years, this activity is bent of 9 and its operating margin fell to 6.4 (10.6 a year ago).

Solid fixed infrastructure

"Emerging markets, where the number of 2 G deployment projects decreased, Alcatel continued to carry out a selective trade policy in deliberately failing to participate in major contracts on which the risks are high in the medium term", explained the CEO. In developed countries, Alcatel has invoked a delay in orders UMTS for some customers, "who prefer to wait for the integration of the assets of Nortel and Lucent. In contrast, fixed infrastructure remain very strong, Alcatel still benefiting from the mutation of the networks to the Internet Protocol (IP). This market, sales increased 6.3 and the operating margin was 11.1 (9.4 a year ago). Despite a disappointing net sales overall, Alcatel jumped 7,19 yesterday in scholarship, 10,29 euros, registering the largest increase of the CAC 40 and grow stronger over the past two years.

Because its fate is now closely tied to Lucent, has, pleasantly surprised on his last quarter of fiscal 2005-2006. For the first time of the year, its sales increased 5 over a year and 25 from the previous quarter. A $ 2.56 billion, they far exceed expectations. "The more good news came from the operating margin, who won 3.4 points in one year, to 10.6 without taking into account benefits related to pension funds," said Cheuvreux analyst Remi Thomas. Moreover, the net profit remained stable over one year, while some anticipated a downturn. What reassure the markets, on the eve of the creation of the world leader in networks fixed and number two in mobile.