Alcatel-Lucent CEO says profit warning does not undermine merger logic |
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Thu, 13 Sep 2007 16:41
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PARIS (Thomson Financial) - The merger between Alcatel and Lucent continues to make sense despite Alcatel-Lucent issuing today its second profit warning of the year, CEO Patricia Russo said.In an interview with Agence France-Presse, Russo said that the rationale behind the merger was and remains being a sector leader in terms of scale, product portfolio and geographical reach.But she acknowledged that Alcatel-Lucent is having a difficult year and that success is not easy in the sector.Regarding today's profit warning, Russo said it related to investment levels among US mobile phone customers and not a change in Alcatel-Lucent's market share.The company announced this morning that, following talks with North American wireless clients regarding their spending plans, third quarter sales growth is expected to be weak and will 'negatively impact' profitability in the period.The company cited a 'change in capital spending' among these customers and as a result, the company is 'not seeing the projected volume changes that would have mitigated the ongoing pricing pressures it is experiencing'.Patricia Russo told Agence France-Presse that Alcatel-Lucent had also observed a slowing in the mobile market linked to wider economic problems in the US.tfn.paris@thomson.comafp/gt/jfrCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Alcatel-Lucent post Q2 net loss as sales beat forecasts; no guidance UPDATE 