ALCATEL RAISES FORECASTS FOR 2000.

The French Alcatel group announced a net profit of Euro 258 million for the first quarter of 2000 on May 4, compared with a loss of 18 million over the corresponding period last year, permitting the group to raise its forecasts for the year as a whole. The group has also announced that it plans to float more than half of its cable activities on the stock market, creating a new company combining its energy cable and copper telecom cables and systems divisions. Alcatel does not plan to retain any stake in this limited company. The group is now anticipating growth of 30% for its four telecom segments over 2000, compared with an initial forecast of 15%. Finance Director Jean-Pierre Halbron is confident that operating margins in telecoms will increase twice as fast at about 60%, yielding an additional operating return of Euro 700 million over the year.Alcatel expects to secure an operational profit of Euro 2 billion for 2000, compared with 1.275 billion in 1999. First quarter turnover is up 42% (47% in telecoms) from Euro 4.319 to 6.124 billion. With less seasonal influence in group sales, Alcatel has secured an operational profit of Euro 113 million for the first quarter, compared with a loss of 154 million over the corresponding...