Alca-Lu's losses widen as sales fall in core markets

6 May 2009

French-US equipment maker Alcatel-Lucent, or Alca-Lu as it is also known, said net losses for the three months ended 31 March 2009 widened on the back of falling sales in the US and in its other core profitable businesses. The vendor posted a net loss of EUR402 million (USD538.8 million) in the period under review, compared with a loss of EUR181 million in the year-ago period. The company’s bottom line was adversely affected by charges on certain assets related to the USD11.6 billion merger of Paris-based Alcatel and US-based Lucent Technologies in 2006, it said. In addition, the vendor was also impacted by a strengthening dollar which increased some of the firm’s costs. Quarterly revenues dipped 6.9% year-on-year to EUR3.6 billion, Alca-Lu said, as turnover fell at its core carrier division (including mobile and fixed line equipment). Despite the poor performance, Alca-Lu expects to return to profit during the second half of 2010.

France, United States, Alcatel-Lucent