PARIS-On the heels of a 61-percent increase in yearly net income from 2004 to 2005, Alcatel Corp. is proposing a dividend payout to its investors for the first time in four years.
The company reported 2005 net income of $1.12 billion on revenues of $15.85 billion, a marked improvement from 2004’s net income of $694 million with revenues of $14.76 billion.
“By mid-year 2005, we saw a turnaround in our wireline business due to the success of our triple play strategy coupled with a breakthrough in our IP carrier data solutions,” stated Serge Tchuruk, chairman and chief executive officer of Alcatel.
Strong fourth-quarter results in particular helped the company’s financials. Alcatel posted net income of $415 million from revenues of $4.93 billion for the quarter, whereas the company posted just $8.5 million net income in the same quarter a year ago.
“In addition, we registered continued expansion in our wireless business fuelled by our radio multi-standard product strategy, which is well aligned with market trends, and a very efficient (research and development) program. In 2005, we grew our carrier business by over 10 percent, outpacing the market growth.”
Tchuruk said the dividend payment of 19 cents per share would be proposed at the company’s annual shareholders meeting scheduled for June 1.
“We anticipate that the carrier market will continue to grow in the mid single digit range for the full year 2006,” noted Tchuruk.
Wall Street reacted favorably to the earnings report, boosting Alcatel’s stock up 42 cents to $14.07 per share in morning trading on the New York Stock Exchange.
