ALCATEL TO START PAYING DIVIDENDS AGAIN.

After three bleak years, Alcatel posted an increase in net profits in 2005 and has decided to pay dividends to its shareholders. CEO Serge Tchuruk said on February 2 that the group henceforth intended to follow a gradual "policy with regard to paying dividends" but did not reveal any further details about the future. The French manufacturer recorded net profits of euro 930 million in 2005, a 61% increase compared to 2004. The fourth quarter it increase almost 50 fold to euro 344 billion.

Mr Tchuruk was cautious about prospects for 2006, adding only that they predicted a slight increase of 5% in annual turnover. Turnover for fixed lines is expected to go up thanks to the new technologies offering television via the Internet and on which the group is banking strongly. Alcatel also hopes to profit from its activities in the DSL market (broadband Internet via phone lines) in which it is the...