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Telecommunications giant suffers big losses

Telecommunications giant suffers big losses
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Shares in Alcatel-Lucent the world’s biggest maker of telecommunications equipment have dived ten percent after the company cut its full-year revenue forecast. The stock was the top loser on France’s CAC-40 index, trading at six euros fifty per share. The company issued a statement that it expects 2007 revenue growth to be flat or slightly up.

Alcatel Lucent shares have fallen by some forty percent since the start of this year, but are down eighty percent since Alcatel’s peak in August 2000. The latest cut in its revenue forecast comes after Alcatel Lucent issued a profit warning in January and then followed it up with a sales warning in April.

Rumours of a new profit warning had caused Alcatel shares to fall last week. Alcatel Lucent was created in December by the takeover of U.S.-based Lucent by France’s Alcatel. The new group has been dogged by merger-related costs and uncertainty over product integration.

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