Alcatel-Lucent posts a net profit in Q4 2014 and confirms Enterprise sell off

For the full year revenue losses were reduced to €1.3bn down from €2.0bn in 2012 on revenues of €14.4bn, up 2.9%; China Huaxin to buy Enterprise division for €268 million with A-L retaining a 15% share

Alcatel-Lucent posts a net profit in Q4 2014 and confirms Enterprise sell off

Alcatel-Lucent showed a ‘significant improvement in operating profitability’ in Q4 2013, posting a net profit of €134 million (£111.5m), a huge improvement on the €1.5bn (£1.2bn) loss it posted in Q4 2012.

Revenue for the quarter was almost flat yr-on-yr at €3.9bn (£3.2bn), but up 8.8% on Q3 2013. Revenue for the Core Network division was down 3.6% yr-on-yr at €1.7bn (£1.4bn); while the Access division was up 4.2% at €1.9bn (£1.5bn).

Revenues for the full year 2013 were up 2.9% to €14.4bn (£11.9bn), while group net losses were reduced from €2.0bn (£1.6bn) in 2012 to a loss of €1.3bn (£1.0bn) in 2013. Revenue for the Core Networking division was up 1.9% to €6.0bn (£4.9bn), while operating profit rose from €142 million (£118m) in 2012 to €472 million (£393m) in 2013.

The Access division saw revenues increase by 5.1% to €7.4bn (£6.1bn), but posted an operating loss of €85 million (£70m) – a marked improvement on 2012, which saw an operating loss of €323 million (£268m).

In terms of geographic breakdown, A-L’s most lucrative region was North America where revenue rose yr-on-yr by 13.8% to €6.0bn. Europe was next, down 2.9% to €3.6bn, followed by Asia Pacific up 0.5% to €2.4bn with the rest of the world bringing up the rear with a contribution of €1.9bn – down 11.8%.

Alcatel-Lucent has signed a binding offer with China Huaxin, a technology investment company, to sell Alcatel-Lucent Enterprise for €268 million (£223m) with A-L retaining a 15% minority share.

Reporting on the company’s Shift Plan, designed to reposition A-L as a specialist in IP and Cloud networking and fixed and mobile ultra broadband access, CEO Michel Combes (pictured), said: ‘We have demonstrated today that we are well on track to meet The Shift Plan’s objectives.’

The company made fixed cost savings of €104 million in Q4, bringing the total for 2013 to €363 million. The aim is to make €1.0bn of fixed cost savings by the end of 2015, along with at least €1.0bn of asset disposals over the 2013-15 period.

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