Alcatel-Lucent posts loss of $3.74 b in Q4
Alcatel-Lucent, the world’s largest maker of telecommunications equipment, said its loss ballooned in Q4 and it will scrap the dividend after writing down the value of a wireless-networks unit.
By Bloomberg |
PARIS: Alcatel-Lucent, the world’s largest maker of telecommunications equipment, said its loss ballooned in Q4 and it will scrap the dividend after writing down the value of a wireless-networks unit.
The loss swelled to euro 2.58 billion ($3.74 billion) from e615 million a year earlier, Alcatel-Lucent said on Friday. Excluding e2.52 billion of writedowns, the net loss was e48 million. Analysts predicted a e181 million profit on that basis.
The company forecast a loss in the first quarter.
Alcatel-Lucent’s market value has plunged e13.5 billion since Alcatel bought Lucent Technologies in December 2006, as the merger and a plan to cut 16,500 jobs failed to compensate for price competition and falling orders. CEO Patricia Russo has yet to steer the Paris-based company back to health, said Frederic Hamm at Agilis Gestion.
“There’s a large gap between what analysts expected and what Alcatel-Lucent reported,” said Hamm, who helps manage e150 million in Paris.
“We expected a profit and it was loss. Again they report a loss, with a profit warning as well. It’s a little worrying.”
Alcatel-Lucent rose 17 cents, or 4.1%, to e4.30 euros as of 9:58 am in Paris, after dropping as much as 8%. Sales rose 18% to e5.23 billion from e4.42 billion in the year-earlier quarter. Sales had been seen at e4.87 billion, based on the median of 14 estimates.
The loss swelled to euro 2.58 billion ($3.74 billion) from e615 million a year earlier, Alcatel-Lucent said on Friday. Excluding e2.52 billion of writedowns, the net loss was e48 million. Analysts predicted a e181 million profit on that basis.
The company forecast a loss in the first quarter.
Alcatel-Lucent’s market value has plunged e13.5 billion since Alcatel bought Lucent Technologies in December 2006, as the merger and a plan to cut 16,500 jobs failed to compensate for price competition and falling orders. CEO Patricia Russo has yet to steer the Paris-based company back to health, said Frederic Hamm at Agilis Gestion.
“There’s a large gap between what analysts expected and what Alcatel-Lucent reported,” said Hamm, who helps manage e150 million in Paris.
“We expected a profit and it was loss. Again they report a loss, with a profit warning as well. It’s a little worrying.”
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Alcatel-Lucent rose 17 cents, or 4.1%, to e4.30 euros as of 9:58 am in Paris, after dropping as much as 8%. Sales rose 18% to e5.23 billion from e4.42 billion in the year-earlier quarter. Sales had been seen at e4.87 billion, based on the median of 14 estimates.
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