Alcatel-Lucent Posts Profit In Q4; Backs Shift Plan 2015 Targets - Quick Facts

(RTTNews) - French telecom equipment maker Alcatel-Lucent SA (ALU) reported Thursday a profit in its fourth quarter, compared to prior year's hefty loss. Further, the company said it is on track to achieve The Shift Plan 2015 targets, focusing on continued cost reductions, cash generation and profitable growth.

For the fourth quarter, net income group share was 134 million euros or 0.05 euros per share, compared to prior year's loss of 1.56 billion euros or 0.69 euros per share.

Adjusted operating income climbed to 307 million euros from last year's 115 million euros reflecting a significant improvement in profitability of both Core Networking and Access segments. Adjusted operating margin grew to 7.8 percent from 2.8 percent last year.

Revenues for the quarter edged down 0.1 percent at constant exchange rates to 3.93 billion euros from 4.10 billion euros a year ago.

Meanwhile, revenues of Core Networking and Access edged up 0.4 percent at constant exchange rates to 3.70 billion euros.

The Board has recommended not to pay a dividend for fiscal year 2013.

Looking ahead, the company continues to expect revenues for the Core Networking segment of more than 7 billion euros with an operating margin exceeding 12.5 percent by 2015.

The company also announced that it has received a binding offer from, and is entering exclusive discussions with, China Huaxin, a technology investment company, for the acquisition of Alcatel-Lucent Enterprise.

The contemplated transaction values Alcatel-Lucent Enterprise at 268 million euros on an enterprise value basis and at a currently estimated 237 million euros on an equity value basis. Alcatel-Lucent will retain a minority stake of 15 percent.