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Alcatel Jan 04
Standard & Poors, Jan 2004
Abstract
The severe contraction affecting the global telecoms equipment industry since early 2001, although market conditions have improved over the two quarters to Sept. 30, 2003. Alcatel's high restructuring costs, which negatively affect its cash flow generation profile and whose extent will not be clearly known until revenues stabilize. The industry's significant overcapacity, strong price pressures, and exposure to the current revaluation of the euro in relation to the U.S. dollar. The continued underperformance of the optics and handsets businesses--structural initiatives might be undertaken--and the continued weakness of the U.S. market. The industry's inherent high technological risk, strong competition, and high capital intensity. Solid liquidity, with gross cash and equivalents of -6.5 billion at Sept. 30, 2003, sufficient to cover cash...
Companies mentioned in this report are: Alcatel-Lucent
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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