Boston, MA 10/31/2013 (wallstreetpr) – French networking equipment manufacturer Alcatel Lucent SA (ADR) (NYSE:ALU) is expected to publish its earnings for the third quarter on October 31. Analysts’ have forecast earnings per share to be around $-0.08, a continuing disappointment from its reported $-0.06 earnings per share for the corresponding FY2012 quarter, posting five consecutive recent quarters of net losses. The result of an ambitious 2006 merger between USA-based Lucent Technologies Inc. and France-based Alcatel, the company has perpetually remained in troubled waters since its inception owing to fierce competition, turbulent European market conditions and economic slowdowns, amid others, desperate to uplift revenue levels and sagging bottom lines. Existing industry competition and intensifying competition from upcoming Asian rivals ZTE Corporation and China’s Huawei Technologies have also jolted the ailing tech giant’s already-eroding revenues.
The continually sinking technology giant recently disclosed extensive restructuring plans including slashing around 10,000 jobs, roughly 15% of its global workforce, as part of a $1.4 billion cost-cutting plan to revive its sagging bottom line and revenues. The layoffs have not particularly gone down well with the French government, with French president Francois Hollande stepping in and asking Alcatel Lucent to salvage maximum jobs in France. The French government is presently battling huge unemployment levels across the country. Alcatel CEO Michel Combes emphasizes that the layoffs are essential and mission-critical to its final damage control measures to turn around and control losses and already-dwindled revenues.
Last year, the group netted its highest loss since 2008 of $1.64 billion, largely due to a write-down on its mobile unit and costs incurred on laying-off 5,000 employees. Recently, investors got a short-lived relief with Alcatel posting encouraging revenues of $4994 million for the second quarter, with an adjusted gross profit of about $1591 million. But this was totally eclipsed by the sinking conglomerate’s huge long-time losses. Though the French government’s intervention showed a negligible 2% revival in Alcatel’s stocks recently, they again dipped.
At the end of October 30 trading, Alcatel shares closed at $3.30, a negligible rise by 0.3% from previous close of $3.29. After-hours trading saw a small spike to $3.34.
