Telecoms equipment company Sagem reported an E14.2 million loss for 2001, down from an E152 million profit in 2001. The company said the biggest problem was the slowdown in the mobile handset market.
However, the French group thinks things will get better in 2002. It expects 10-12% growth in its defense activities, while its telecoms activities will not get any worse. Recovering mobile phone sales will offset stagnant a network equipment market and declining demand for set-top boxes.
Sagem has also made some positive strategic moves. Its cost-cutting program should get costs down by as much as 20% by the end of this year. Its alliances in the mobile handset market – with Alcatel for GPRS phones and Fujitsu for 3G – should also improve its position.