Alcatel-Lucent Net Drops

Alcatel-Lucent posted a net loss 8 million euros, or $10.8 million, during the first quarter mostly because of the companys $11 billion dollar merger.

The French-American equipment maker reported first quarter net income of 199 euros ($268 million), or 9 cents per European share, compared with 306 million euros, or 13 cents per share, during the same period a year ago. Revenue fell 12.4 percent to 3.88 billion euros ($5.2 billion) from 4.43 billion euros in 2006.

The company also reported a net operating loss of 244 million euros or $330.4 million.

Alcatel and Lucent announced merger plans last spring and finalized the deal in December.

Despite recent earnings warnings and restructuring, which includes the planned elimination of 12,500 jobs, CEO Patricia Russo said she expects full-year revenue growth of 4 percent to 6 percent. She also expects revenue growth around 10 percent during the second quarter and said the company should save at least 600 million euros this year.

Alcatel-Lucents shares rose 2.7 percent to 9.84 euros ($13.31) Friday.

The company saw first quarter declines in most areas. Its convergence business was down 31 percent and its carrier business was down 15 percent and wireless revenue was down 20 percent. Its enterprise division did rise 9 percent.


Leave a comment

Your email address will not be published. Required fields are marked *

The ID is: 76018