Alcatel-Lucent posted its first quarterly net profit in two years in the fourth quarter of 2013, and said its turnaround under the "Shift" plan led by CEO Michel Combes is on target. In the fourth quarter the vendor's North American sales inched up and the company's overall margins widened.
Alcatel-Lucent said it will cut fewer jobs in France than originally planned, indicating that the US-Franco equipment manufacturer and the country's mobile operators have been influenced by pressure from the French government.
The Alcatel-Lucent rumour mill continues to grind as 2014 gets underway, with a new report saying the equipment manufacturer is in talks with potential buyers on the sale of its enterprise unit.
As another year comes towards its end, it would be remiss of me to not to look back at what has been an incredibly eventful year in European telecoms in order to highlight some of the main trends that have not only emerged in the past 12 months, but also look set to dominate the market in the coming year and beyond.
As was widely anticipated, Alcatel-Lucent is to rejoin the French blue-chip index CAC 40 on Dec. 23 in a move that reflects the continuing recovery of the telecoms equipment manufacturer after several torrid years.
There are growing indications that Alcatel-Lucent is increasingly reaping the benefits of its turnaround efforts with reports suggesting the equipment manufacturer could rejoin the France's blue-chip CAC 40 index next month.
Alcatel-Lucent has hatched a plan to raise $1.3 billion from its shareholders and $750 million from a high-yield bond that company CEO Michel Combes says will reduce debt and save the company, reports Reuters.
Alcatel-Lucent said it is seeking to raise around $2.7 billion in fresh capital via a combination of new shares and debt, as the equipment vendor takes advantage of a rising stock price and optimism that it will be able to reverse its business situation.
Alcatel-Lucent reported a narrower loss for the third quarter amid rising revenue. The results indicate that the vendor's massive new cost-cutting plan is starting to take hold as it tries to nurse itself back to health as a smaller company.
Alcatel-Lucent CEO Michel Combes warned that the company is facing a dire situation and that its recently announced job cuts and restructuring moves are necessary to keep the vendor afloat.