Alcatel-Lucent loss narrows in 1st quarter

May 06, 2011 By GREG KELLER , AP Business Writer

(AP) -- Alcatel-Lucent SA said Friday its net loss narrowed sharply in the first quarter compared with a year earlier, when a components shortage caused the telecommunications gear maker's losses to balloon.

Paris-based Alcatel-Lucent said in a statement that rising demand for across the globe that lifted sales at the end of last year has continued into 2011.

It reported a net loss of euro10 million ($14.8 million), down from euro515 million a year earlier, and confirmed its financial guidance for this year.

Adjusted - its preferred measure for profitability - is expected to rise to above 5 percent this year, compared with 1.8 percent in 2010.

The company said years of restructuring following the 2006 merger of Alcatel of France and U.S.-based Lucent have begun to pay off.

Shares in Alcatel-Lucent sunk in early trading on the Paris stock exchange, falling 4.2 percent to euro4.11.

Chief Executive Ben Verwaayen called the first quarter performance "a strong start to the year," and forecast further improvement over the rest of the year.

"Market momentum remains robust, driven by demand for more capacity and service capabilities in many geographies," Verwaayen said.

Alcatel-Lucent's sales grew 15.2 percent to euro3.74 billion, with growth particularly strong in North America, its largest market.

Sales there grew 40 percent to euro1.56 billion in the first quarter, boosted by demand from phone companies who are upgrading their networks to cope with growing demand for like the and BlackBerry.

Alcatel-Lucent, which has its North American headquarters in Murray Hill, New Jersey, has struggled for years to return to profit, with total losses since the company's trans-Atlantic tie-up now topping euro9 billion.

Further restructuring in the first half of last year offset a return to profit in the second half, leaving Alcatel-Lucent's full-year net loss at euro334 million. Verwaayen has pledged to return the company to annual profit this year.

supplies telecommunication carriers such as AT&T, Verizon and France Telecom. It competes with European rivals such as LM Ericsson AB of Sweden and Nokia Siemens Networks of Finland.

Explore further: Out-of-patience investors sell off Amazon

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Alcatel, Lucent pull trigger on big merger

Apr 03, 2006

Sunday's merger of France's Alcatel and U.S. telecom manufacturer Lucent will be finalized in six to 12 months, assuming regulatory approval is granted.

Verdict spares Microsoft $358M in patent damages

Sep 11, 2009

(AP) -- A federal appeals court said Friday that Microsoft Corp. does not have to pay Alcatel-Lucent $358 million for patent infringement because of problems with how the damages were calculated.

Alcatel-Lucent announces Internet contract in China

Jul 21, 2010

French-US telecom equipment maker Alcatel-Lucent said on Wednesday it had been chosen by mobile operators China Mobile and China Telecom to install a fiber optic network in China enabling high-speed Internet ...

AT&T picks Alcatel-Lucent, Ericsson for network

Feb 10, 2010

(AP) -- AT&T says it has picked Alcatel-Lucent and Ericsson to supply the equipment for its next wireless network, which will provide faster data speeds starting next year.

Recommended for you

Out-of-patience investors sell off Amazon

Oct 24, 2014

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0