Alcatel sees lower sales, better income from operations

Alcatel SA said on Monday that first-quarter earnings from operations promise to be slightly better than in the previous quarter, although sales appear to have dropped further than expected.

The French telecommunication-equipment maker expects to post a first-quarter net loss of about €850 million (US$747 million as of March 31, the last day of the period being reported), its fourth-consecutive quarterly loss. That compares with a €1.5 billion net loss last quarter and a net profit of €210 million in the year-ago period.

Sales are expected to be down 32 percent compared to the previous quarter, slightly more than the 30 percent decline Alcatel anticipated. Income from operations should be a bit better than the €368 million loss in the previous quarter, the company said.

Alcatel of Paris has been restructuring to keep its head up in a down economy and aims to break even with quarterly sales under €5 billion. The company has set a target to slash costs by 20 percent and has cut over 30,000 jobs.

Alcatel released the preliminary figures ahead of its shareholders meeting later this week. Full first-quarter results are scheduled to be published on April 25.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about Alcatel-Lucent

Show Comments