Gediminas Jasionis

Alcatel-Lucent (NYSE: ALU) posts profit on assets sale

by Gediminas Jasionis July 30, 2009
alcatel-lucent-logo.jpgAlcatel-Lucent (NYSE: ALU) announced their quarterly results on Thursday. Telecommunication technology provider recorded net profit for the second quarter 2009. The company's financial performance was mainly boosted by gains from asset sales.

Net profit for the period totaled EUR14 million - a significant improvement from EUR1.1 billion loss over a year ago period when the company booked EUR810 million impairment charge. Analysts on average were expecting EUR169 million net loss. Considering only revenues from operations the company would have lost EUR62 million for the second quarter 2009.

Alcatel was saved by EUR255 million proceeds from the sale of its stake in Thales SA - French defense and aerospace company. Even with this exceptional gain the company's revenue dropped 4.8%. The company suffered from still weak network equipment demand but published expectations of sustained improvement if Alcatel's key metrics.

"Operationally, we are seeing positive trends in our top-line, gross margin and operating expenses," Chief Executive Ben Verwaayen pointed out. The company said they expect moderate profit in 2010, but 2009 is still time to fully harmonize Alcatel's merged corporation.

Alcatel's stock price jumped 8% on announcement but failed to rally above $2.8 mark on New York Stock Exchange amid Thursday's trading session.

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