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Alcatel-Lucent improves margins, cash flow in Q3
2015-10-29 09:08:00| Telecompaper Headlines
(Telecompaper) Alcatel-Lucent reported third-quarter revenues down 5 percent year-on-year to EUR 3.43 billion. Adjusted operating profit improved to EUR 212 million from EUR 170 million a year ago, as the company completed about 90 percent of the cost savings targeted under its 'Shift Plan'. The gross margin was up 50 basis points year-over-year to 34.5 percent, and the adjusted operating margin expanded 100 points to 6.2 percent. The net result was still a loss of EUR 206 million, widening from EUR 18 million a year ago due to a goodwill impairment charge on ASN. Operating cash flow moved to a positive EUR 83 million versus negative EUR 61 million a year earlier. For 2015 as a whole, Aclatel-Lucent forecast Core Networking revenues of EUR 6.8-7.0 billion and an adjusted operating margin similar to 2014, owing to the dilutive contribution from ASN. The submarine networks division has suffered from delays in contractual implementation of awards and continued softness in some geographies, notably Japan, the company said. The Access division, after reaching record profitability in Q3, is expected to largely exceed the operating cash flow target of EUR 200 million for 2015.
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Category:Telecommunications