je.st
news
Alcatel-Lucent improves margins, agrees Enterprise sale
2014-02-06 09:19:00| Telecompaper Headlines
(Telecompaper) Alcatel-Lucent reported stable revenues and improved operating profit in the fourth quarter, while also taking the next step in narrowing its focus with the agreed sale of its enterprise business. Revenues were down just 0.1 percent at constant exchange rates to EUR 3.930 billion, and adjusted operating profit improved to EUR 307 million from EUR 115 million a year ago. The company posted a net profit of EUR 138 million, versus a loss of EUR 1.56 billion a year ago when it took a number of asset writedowns. Alcatel said it achieved EUR 363 million in cost savings last year, beating its target of EUR 250-300 million. The group also posted free cash flow of EUR 363 million in Q4, up slightly from a year ago and leaving it with net cash of EUR 149 million at year-end. In addition, the company reached an agreement to sell its Enterprise business to China Huaxin, a technology investment company. The deal values the activities at EUR 268 million, and Alcatel will retain a 15 percent stake in the operations. Alcatel-Lucent reiterated its targets for 2015, including revenues for the Core Networking segment of more than EUR 7 billion (versus EUR 6.1 billion in 2013) with an operating margin over 12.5 percent (7.7 percent in 2013), EUR 1 billion in cost reductions by the end of 2015 and at least EUR 1 billion in asset disposals.
Tags: sale
enterprise
agrees
improves
Category:Telecommunications