Alcatel-Lucent posts €11m operating loss

Telecoms equipment maker Alcatel-Lucent today posted its twelfth straight quarterly net loss, hit hard by telecoms operators' …

Telecoms equipment maker Alcatel-Lucent today posted its twelfth straight quarterly net loss, hit hard by telecoms operators' sharp cutbacks in network investments.

The French-American group suffered an adjusted operating loss of €11 million on revenues of €3.687 billion in the three months to September 30th.

Chief executive Ben Verwaayen said the market environment "remained challenging" and confirmed his forecast that the addressable market for telecoms gear would drop by 8 to 12 per cent this year.

Mr Verwaayen said the group had already realised 80 per cent of the €750 million in cost cuts it was aiming for this year.

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He confirmed that he hoped Alcatel-Lucent would reach break-even on an adjusted operating basis this year.

Alcatel's chief financial officer said he expects the market to grow by 5 per cent or less in 2010.

Alcatel-Lucent's rivals Ericsson reported lower-than-expected earnings last week, citing tough pricing conditions and slower spending by customers in emerging markets.

Reuters