Telecom Lead Asia: Alcatel-Lucent on Thursday said
it is ready to exit non-profitable telecom markets.
Alcatel-Lucent did not share details of non-profitable
Alcatel-Lucent will also be exiting or restructuring
unprofitable Managed Services contracts with associated headcount reduction.
Alcatel-Lucent has managed services contracts with
Reliance Communications and Bharti Airtel in India.
The telecom gear maker has posted 7.1 percent dip in
second quarter revenue year-over-year to 3,545 million euro.
Decline in North America was 8.3 percent.
Revenue in Asia Pacific telecom markets declined 4.8
In Europe, Alcatel-Lucent had the worst performance,
among the regions, with revenue dipping 15.6 percent. Income from rest of the
world decreased 11.7 percent.
These times demand firm actions, but as this will
involve shrinking our employee base and exiting certain non-profitable
contracts we will use The Performance Program to execute in a measured fashion.
However we are taking aggressive action that will improve our agility in the
marketplace while remaining fully committed to both our customers and
continuing to deliver world-class innovation,” said Ben Verwaayen, CEO,
Networks witnessed a double-digit decline this quarter
compared to the year ago period.
The second quarter 2012 adjusted net loss was 221 million
The second quarter performance confirms our strong
positions in many attractive market segments including IP, Next-Generation
Optics and Broadband Access, all of which are key investment areas that support
our High Leverage Network Strategy,” Verwaayen added.
Alcatel-Lucent India revenue dips 41% in 2011
Alcatel-Lucent India posted 41 percent decrease in 2011
revenue primarily because of uncertainties about telecom investment in the
country. Alcatel-Lucent CEO Ben Verwaayen had expressed concerns about
uncertainties in Indian telecom market.
Alcatel-Lucent’s APAC revenues were down 4 percent for
the full year. Revenue in China was up 7 percent for the full year. India was
down 41 percent, and Australia was up 14 percent.