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Alcatel-Lucent improves margin, sales still lower in Q3
2014-10-30 08:34:00| Telecompaper Headlines
(Telecompaper) Alcatel-Lucent reported third-quarter revenues down 5.9 percent year-on-year to EUR 3.254 billion, as growth in the Asian LTE market was offset by weaker managed services in Europe and slower equipment sales in North America. The company's adjusted operating profit still improved, to EUR 170 million from EUR 113 million a year ago, on ongoing cost cuts in the 'Shift Plan'. Alcatel cut costs by EUR 73 million in Q3, for cumulative savings of EUR 645 million. SG&A expenses were notably down 13.6 percent compared to Q3 2013. The company still recorded a net loss of EUR 18 million, versus a loss of EUR 200 million a year ago, and operating cash flow was a negative EUR 61 million versus a positive 38 million a year earlier. Excluding restructuring charges, Alcatel managed EUR 1 million in free cash flow, and the company said it still expects to return to recurring free cash flow in 2015. CEO Michel Combes said Alcatel had entered the second chapter of the Shift Plan and would now focus on innovation to drive growth.
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Category:Telecommunications