Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Alcatel Lucent Swings into Annual Loss, CEO Verwaayen to Quit (ALU)

Thursday, February 7, 2013 8:53 AM
alcatel-lucent-logo-1French telecom giant, Alcatel Lucent SA (ADR) (NYSE: ALU), which supplies telecommunications operators and corporations the technology required to build global communications networks, reported annual losses for the fiscal 2012 on Thursday. The beleaguered company also announced that its Chief Executive Ben Verwaayen will be resigning from his post. The search is on for Verwayyen’s replacement and he will continue to stay as the CEO until his successor is found, said the Company in a statement. The search for the new leadership will be done both within and outside the company, according to the sources familiar with the matter. Alcatel Lucent, which has been reeling under tremendous pressure due to rising competition from the likes of Ericsson of Sweden, Huawei of China and Nokia Siemens Networks, a Finnish-German joint venture along with burning cash since 2007, reported a loss of €1.37 billion or $1.85 billion, for the fiscal 2012, compared to a gain of €1.1 billion gain, in the year earlier fiscal. “(it was) clear to me that now is an appropriate moment” for Alcatel-Lucent to find new direction, said Ben Verwatten in a statement. The board of directors holds divided opinion over Verwaayen’s attempt to turnaround the Company. While some board members are apparently miffed with Verwaayen’s slow progress in turning around the operations, one person said that decision to leave the company was mutual and Verwaayen had succeeded in stabilizing the company, according to the Wall Street Journal. Verwayyen’s departure comes at time when Alcatel Lucent is going through turbulent phase.  France’s Alcatel merged with the U.S. based Lucent Technologies, more than six year ago to create a telecommunication-giant. However, the deal failed to make any impression in the fiercely competitive telecom landscape. Although its revenue is much lower than its rivals’, Alcatel Lucent is practically present in every line of business, which is not the case with competitors. As a result, Alcatel Lucent has been lacking efficiency.  The Company has suffered more recurring rounds of job cuts and restructuring. Alcatel-Lucent shares rallied in premarket trading following the announcement.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Wal-Mart to expand discounts as retail price war heats upWal-Mart to expand discounts as retail price war heats up
(Reuters) - Wal-Mart Stores Inc said it will expand its offering of discounted products during the holiday season and may broaden a price-matching scheme to include online rivals, in the latest sign o...
Samsung Electronics seeks China turnaround, unveils mid-tier handsets with premium feelSamsung Electronics seeks China turnaround, unveils mid-tier handsets with premium feel
SEOUL (Reuters) - Samsung Electronics Co Ltd unveiled two new mid-tier handsets with a premium design as it prepared to deliver a riposte to its low-priced Chinese rivals and reclaim its title as the ...
Benzinga's M&A Chatter for Thursday October 30, 2014Benzinga's M&A Chatter for Thursday October 30, 2014
The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday October 30, 2014: SoftBank Looking at America Movil Assets The Rumor : Shares of America Movil S...
Asia shares rise on brightening U.S. prospects, BOJ awaitedAsia shares rise on brightening U.S. prospects, BOJ awaited
TOKYO (Reuters) - Asian shares ticked higher on Friday as investors cheered upbeat U.S. growth data, while the dollar held near four-week highs against the yen as markets awaited the outcome of the ...
UK consumer morale edges down as economic outlook clouds: GfKUK consumer morale edges down as economic outlook clouds: GfK
LONDON (Reuters) - British consumer morale edged down for a second month in October as households showed less faith in the outlook for the economy, a survey by researchers GfK showed on Friday. GfK`...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.