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Last Update: 04-Nov-11 09:58 ET
Alcatel-Lucent Beats Third Quarter Earnings Consensus
Alcatel-Lucent (ALU $2.31 -0.45) reported third quarter earnings of $0.08 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.03.
Revenues fell 6.9% year/year to $3.79 billion versus the$4 billion consensus.
"And given economic uncertainties, we will take more radical actions to accelerate our transformation and reduce quickly our costs structure, especially in Europe. This will generate additional savings in 2012 of € 200 million in fixed costs addressing mainly our SG&A spending and EUR300 mln in variable costs addressing mainly project and delivery efficiency. For the remaining part of 2011, given these market uncertainties, and selective spending from our customers, especially in Europe, we now expect weaker revenues there than initially planned in the fourth quarter of 2011. Therefore, we now are aiming for an adjusted operating margin of around 4% of 2011 sales taking benefit of the fixed costs savings already achieved in 2011, at an exit run-rate level of around EUR300 mln a year."
Revenues fell 6.9% year/year to $3.79 billion versus the$4 billion consensus.
"And given economic uncertainties, we will take more radical actions to accelerate our transformation and reduce quickly our costs structure, especially in Europe. This will generate additional savings in 2012 of € 200 million in fixed costs addressing mainly our SG&A spending and EUR300 mln in variable costs addressing mainly project and delivery efficiency. For the remaining part of 2011, given these market uncertainties, and selective spending from our customers, especially in Europe, we now expect weaker revenues there than initially planned in the fourth quarter of 2011. Therefore, we now are aiming for an adjusted operating margin of around 4% of 2011 sales taking benefit of the fixed costs savings already achieved in 2011, at an exit run-rate level of around EUR300 mln a year."
