Alcatel on the slide again
After making its first profit in five years last year, Alcatel-Lucent made a loss again in Q2, losing Euros 254m on sales of Euros 3.5bn.
The company’s shares are at their lowest level for over 20 years. The share price has fallen 80% since the current CEO Ben Verwaayen, formerly CEO of BT, took over in 2008.
The company has only got Euros 236m in cash.
Attempts to monetize its formidable patent portfolio have not, so far, brought anything in.
The company will make 5000 people redundant from its 78,000 workforce of which 9000 are based in France. President Hollande has made it plain he takes a dim view of mass firings and will try to stop them.
Verwaayen’s lunch is being eaten by China’s Huawei and ZTE.