Alcatel-Lucent Returns to Quarterly Profit on Cost-Cutting Measures
Published on: 7th Feb 2014
By: Ian Mansfield
Alcatel Lucent yesterday announced its financial results and returned to profit after several quarters of losses.
The company reported revenues for the fourth-quarter that were down a fraction of a percentage point at EUR3.93 billion, while it turned in a profit of EUR134 million compared to a loss of EUR1.6 billion a year ago.
For the full year, revenues rose slightly to EUR14.4 billion, while the net loss shrank to EUR1.3 billion, compared to a loss of EUR2 billion in 2012.
From a geographic standpoint, at constant exchange rates, North America grew 2% year-on-year, moderating its pace compared to previous quarters, while Asia Pacific moved into positive territory by rising 10% year-over-year, driven by network roll-outs in China. Encouraging trends continued in Western Europe while Russia returned to growth. The Rest of World area witnessed a decline in the mid-teens.
The Board has recommended not to pay a dividend for fiscal year 2013.
In related news, the company also announced an agreement to sell its Enterprise business to China Huaxin for EUR268 million.