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.
