Boston, MA 02/10/2014 (wallstreetpr) – Alcatel Lucent SA (ADR) (NYSE:ALU) looks like it is regaining back its mark in the market having posted improved Q4 results as compared to Q4 results of F2012. The company had been grappling with net losses totaling €1.56 billion in the same quarter of F2012 but has shown signs of improvement posting net profits of €134 million for the same quarter in F2013. The high losses posted in F2012 were mainly caused by a total of €1 billion in impairment and restructuring charges.
ALU Q4 analysis
Despite posting profits totaling €1 billion the company saw its revenue slump by 4.1% to reach a low mark of €3.93 billion against forecast estimate of €4.1 billion. Its adjusted operating profits of €307 million against €115 million was mainly boosted by higher gross margins that the company recorded in the fourth quarter complemented by a reduction in fixed costs.
Alcatel Lucent SA (ADR) (NYSE:ALU) operating margin stood at 7.8% an increase of +5 an improvement the management expects to continue in the coming quarters. The company main goal at the moment is to try and reach its 2015 target of being a cash flow positive enterprise with sustainable profits. Having recorded profits of €134 million one can say the company is on the right patch to achieve its targets.
Alcatel plans to sell its phone business
Alcatel Lucent SA (ADR) (NYSE:ALU) has been striving to dispose of, its phone business enterprise to existing china partner Huaxin. The investment partner had made a bidding for the enterprise of which Alcatel Lucent would wish to let go of 85% of its holding. Given the concerns that the US government has over Chinese telecom gear, it leaves a lot to be seen as to whether the deal will go through. Alcatel plans to let go of some of its enterprise as it tries to focus more on profitable ventures.
Alcatel Lucent closed Friday trading session at a stable price of $4.48.
