Analysts have warned that Alcatel-Lucent must return to profitability soon to avoid a cut in its debt rating, after the equipment manufacturer revealed in its first-quarter results that it is still suffering from high cash burn.
Restructuring costs and a wait for payments on commercial contracts slammed Alcatel-Lucent's cash flow figure, as the company burned through $694 million in cash during 2013's first quarter, worsening the year-earlier free cash flow loss of nearly $211 million.
Our sister publication FierceWirelessEurope reports that Deutsche Bank thinks Alcatel-Lucent's prospects have improved, thanks, in part, to the appointment of new CEO Michel Combes, who is known for slashing costs.
Analysts at Deutsche Bank is revising its view of Alcatel-Lucent, and think the vendor now has the "key ingredients" for a turnaround, helped by the appointment of a new CEO with a track record for reducing costs.
Alcatel-Lucent's new CEO Michel Combes is expected to accelerate the company's €1.25 billion cost-cutting plan, which includes 5,500 job cuts, a labour union source told Reuters .
Alcatel-Lucent named Michel Combes, a former CEO of Vodafone Europe, as its new CEO, charging him with returning the company to consistent profitability after the tumultuous tenure of Ben Verwaayen, who announced earlier this month he would step down.
Alcatel-Lucent on Friday named Michel Combes as the company's new CEO, taking the reins from Ben Verwaayen, who announced earlier this month that he would step down amidst ongoing financial struggles. He will begin on April 1.
Alcatel-Lucent named Michel Combes as its new CEO. The Frenchman, best known for navigating Vodafone's European operations through the financial crisis, will take over the CEO role starting April 1, and will replace Ben Verwaayen, who announced earlier this month he would step down.
Vivendi CEO Jean-Bernard Lévy unexpectedly resigned Thursady amid a disagreement with the board about the strategic direction of the company. The move, which could lead to Vivendi disposing of various assets, has forced the company to hurriedly promote Stéphane Roussel, currently the head of human resources at Vivendi, to become the CEO of operator SFR.
The departure of Vodafone's European head, Michel Combes, could trigger a dramatic reshaping of the company's European operations, according to a Bloomberg report. The report, citing unnamed...