Boston, MA 11/04/2013 (wallstreetpr) – Alcatel Lucent SA (ADR) (NYSE:ALU) has posted net losses totaling €200 million translating to 9 cents a share for the third quarter compared to same quarter a year ago of € 316 million or 14 cents a share. The decline in losses can be attributed to the company increased sales in IP routing and wireless divisions. The Company operating profits for the third quarter stood at € 316 million with its cash flow losses lowering to a low of € 218 million from the high of € 366 million a year ago.
The financial result for the third quarter show signs of growth for the company according to its Chief Executive Officer Michel Combs. The company looks set to slim down its workforce by up to 15% approx. 10,000 in efforts of reducing its wage bill to boost its net profits. The company current priority is to improve its cash flow which improved to a high of € 150 million in the third quarter. Alcatel has a good traction of its LTE overlay strategy and continues to enjoy good wins with sprint Telefonica and in China
Alcatel Lucent currently boosts of fixed cost savings totaling € 260 million as it continues to reduce its bonds maturity to less than € 900 million. The company projects strong seasonal activities for the fourth quarter that could see its fixed cost savings reaching a high of € 300 million for the full year. The company Revenues for the third quarter stood at € 3.67 billion an increase of 1.9% with revenues of its core segments rising by 6%at constant exchange rates. The company operating income stood at 6.1% of revenues as compared to 0.2% a year ago. The company considers North America as a base for its largest clients who it will focus on in the fourth quarter to boost its revenue reserves.