Alcatel operating profit in line, trims margin goal

PARIS (Reuters) - Alcatel posted a 25.2 percent drop in third-quarter operating profit on Thursday that was in line with forecasts as higher costs offset stronger trading in the United States and emerging markets.

Europe's second-largest telecoms equipment provider forecast full-year sales would rise at the top end of the 5 percent to 8 percent range previously indicated at constant exchange rates.

However, it cut its operating margin target for the year to around 9 percent from 10 percent.

Alcatel said it had generated earning before interest (EBIT) and tax of 278 million euros (US$335.4 million), which compared with an average of 279 million euros from a Reuters poll of 10 analysts and 372 million euros in the year-ago period.

The company said on a conference call that last year's performance benefited from one-off gains totalling 110 million euros, some related to the disposal of real estate.

Third-quarter net profit rose to 266 million euros from 195 million euros, or 0.19 euro in diluted earnings per share for the period, beating a Reuters poll of 0.12 euro.

Alcatel maintained its target of diluted EPS of 0.60 euro for the full year.