New losses at Alcatel-Lucent amid rehaul

Oct 31, 2013

Telecommunications equipment maker Alcatel-Lucent SA lost 200 million euros ($274,000) in the third quarter, including costs of restructuring efforts aimed at turning around the long-struggling company.

It's the latest in a series of losses for the France-based company, and compares with of 316 million euros in the same quarter in 2012.

Alcatel-Lucent in a statement Thursday attributed the latest loss to a financial charge and costs of restructuring, which includes thousands of , ending unprofitable contracts and focusing on newer technology.

Sales in the quarter were 3.67 billion euros, up from last year's third quarter of 3.6 billion euros. The company reported a stronger contribution from broadband and other internet activities, offsetting shrinking activity in older technology. It said sales growth was driven by North America, while sales fell in Latin America and Asia.

Alcatel-Lucent supplies companies such as AT&T, Verizon and France Telecom.

CEO Michel Combes, whose predecessor struggled to turn the company around and who recently warned the company could "disappear" if it's not overhauled, said it is continuing asset sales to focus on developing new broadband. "We are seeing the first positive signs of our new operating model in our day-to-day business," he said.

The has lost money nearly every year since the 2006 merger of New Jersey's Lucent Technologies and France's Alcatel.

Explore further: Amazon to offer free same-day delivery to Prime members

Related Stories

Telecoms firm Alcatel-Lucent to cut 10,000 jobs

Oct 08, 2013

Telecommunications equipment maker Alcatel-Lucent SA said Tuesday that it plans to cut 10,000 jobs worldwide over the next two years, the latest cost-cutting drive from the loss-making company.

Troubled telecoms: Alcatel-Lucent job cut protest

Oct 15, 2013

Wearing black trash bags marked with crosses, more than a thousand Alcatel-Lucent workers marched to the Eiffel Tower on Tuesday, staging a mock funeral that the chief executive warned could easily become a reality for a ...

Alcatel-Lucent loss narrows in 1st quarter

May 06, 2011

(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.

Alcatel-Lucent boss leaving as losses mount

Feb 07, 2013

Alcatel-Lucent CEO Ben Verwaayen is leaving the loss-making French-U.S. telecommunications gear maker after a failed four-year bid to turn the business around.

SAP profits up 23 percent as cloud computing grows

Oct 21, 2013

Business management software company SAP AG says net profit rose 23 percent in the third quarter as its cloud computing business grew rapidly and the company kept down costs by holding down hiring of new employees.

Recommended for you

GoPro gets real ... virtually real

26 minutes ago

Shares of GoPro's are rising before the opening bell after the company's CEO said the company is getting into the drone and virtual reality business.

Jawbone files lawsuit against rival Fitbit

5 hours ago

In a clash of rival makers of fitness trackers, Jawbone is suing Fitbit and a group of employees who quit Jawbone to work for Fitbit, saying they stole trade secrets, business plans, market research, and other information.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.