Alcatel-Lucent continues its annual forecast, after presenting its results for the second quarter. The telecoms equipment maker has finished the past three months with a net loss of 184 million euros, equivalent to a net loss per diluted share of 0.08 euro. This net loss is worse than the result recorded in the same period a year ago, which then displayed in the green, to 14 million euros. But the quarterly net loss marks a clear improvement over results reported in the previous quarter, during which the group had lost 515 million euros.
Alcatel-Lucent is delighted especially to see its operating profit return to equilibrium. Adjusted data, it is 28 million euros, or 0.7% of revenues.In published data, it remains negative, at -45 million euros, against 130 million euros a year ago, and -263 000 000 euros at the end of first quarter 2010.
Low activity in China
The group's turnover was slightly lower on a year. In fall of 2.4% over the second quarter of 2009, it stood at 3.813 billion euros, or 17.4% more than during the previous three months. The effects of consolidation and exchange rates were favorable to the group on the quarter. Adjusted data, the turnover of the second quarter is apparent down 6.9% year on year, but it remains up from the previous quarter (+11.8%).
"The momentum has been strong in North America with a double-digit growth and the trend has improved in the world, lower income there is much less marked than in the first quarter.The revenue decline in Europe has remained the order of almost 10%. Finally, Asia Pacific has experienced a double digit decline, due to low activity in China, partly offset by significant growth in India, "the company said.
An improvement in adjusted gross margin
The group's adjusted gross margin rebounded to 36.1%, an improvement of three points over one year and by 3.5 points compared with the margin achieved during the first three months of 2010.
Alcatel-Lucent is confident for the second half. Ben Verwaayen, the CEO of Alcatel-Lucent, promises to "maintain a strict control of costs and expenses." He anticipates a "second half of 2010 supported, thanks to a growing backlog.Additional benefits are expected in the coming quarters. "
The group believes that "despite the shortage of components that still impact our supply chain, demand for telecommunications equipment and related services is recovering." He believes that the growing market for telecommunications equipment will be between 0% and 5% this year. In this context, Alcatel-Lucent intends to achieve an operating profit Adjusted between 1% and 5% of its revenues.