Shares in Alcatel-Lucent fell as much as 12 per cent after the world's biggest maker of telecommunications equipment said that it does not expect to make a profit in the fourth quarter. The company said that revenues had slipped in its first financial update since its $11.6 billion merger.
Pro-forma sales are expected to fall 16 per cent to €4.42 billion (£2.9 billion) in the quarter, from €5.25 billion a year earlier. The company expects to break even during the period, compared with operating profit of €570 million a year earlier.
Alcatel-Lucent, which also flagged restructuring charges of about €800 million, will report full earnings figures on February 9.
Alcatel SA and Lucent Technologies merged last year in an attempt to fend off competition from rivals such as China's Huawei and Sweden's Ericsson. However, the newly created company has since faced lower spending in the US and increased competition in wireless technology suppliers.
In mid-afternoon deals in Paris, shares in Alcatel were down €1.10, or 10 per cent, at €9.85.
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