Alcatel-Lucent Loses €8 Million in Q1, but Expects Strong Second Half

1:59 am on May 14, 2007 | Category: Business, Corporate

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Alcatel-Lucent, the telecom equipment giant formed by a trans-Atlantic merger last year, posted a loss of €8 million ($10.8 million) for the first quarter on Friday, but promised a strong second half as merger-related costs subside.

The company’s Q1 revenue fell 12.4% to €3.88 billion, compared with a combined total of €4.43 billion generated by France’s Alcatel and U.S.-based Lucent in the first quarter of 2006.

Chief Executive, Patricia Russo, however, says that she expects revenue growth of 4% to 6% for the year as a whole. Russo admitted that the target “implies we’ll have a very strong second half,” but added that “we ought to be able to grow faster than the market,” due to merger-related cost savings and restructuring.

The company is reportedly on track to achieve €600 million in cost savings over the course of this year, which is in line with its three-year pretax savings target of €1.7 billion.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock