Alcatel-Lucent posts first-quarter operating loss

24th April 2007, Comments 0 comments

PARIS, April 24, 2007 (AFP) - Recently merged telecommunications equipment giant Alcatel-Lucent Tuesday reported a first-quarter operating loss of about 260 million euros (353 million dollars) due to declining sales in mobile and core networks.

PARIS, April 24, 2007 (AFP) - Recently merged telecommunications equipment giant Alcatel-Lucent Tuesday reported a first-quarter operating loss of about 260 million euros (353 million dollars) due to declining sales in mobile and core networks.

Sales fell 12 percent to 3.9 billion euros in the quarter, the company said in a statement of preliminary results. The first-quarter loss compared with a pro forma operating profit of 246 million euros a year earlier.

"Our first quarter results were impacted by lower volumes in traditional wireless and core networks at a time when considerable investments were made in the next generation of these technologies," chief executive Patricia Russo said.

Russo also said that equipment orders were up by the end of the quarter "which makes us confident of our capacity to return to growth during the year."

First-quarter results, to be released in more detail on May 11, are expected to include a pre-tax gain of 780 million euros from the sale of satellite, transport and security assets to French defence manufacturer Thales.

The group faces stiff competition and job cuts during the first quarter totalled 1,900, or 15 percent of the three-year target of 12,500.

"Associated cost savings will be incorporated in our operating results going forward," Russo said.

Shares in Alcatel-Lucent fell in early trading Tuesday.

In opening deals, Alcatel-Lucent was down 0.29 euros, or 2.1 percent at 9.01 euros. The Parisian CAC-40 Index was down 4.18 points at 5,913.14.


Copyright AFP

SUbject: French news

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