Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
French telecommunications equipment maker Alcatel-Lucent/AFP


Alcatel cuts 2012 operating margin estimate

French telecommunications equipment maker Alcatel-Lucent/AFP

PARIS, Jul 17 – The French telecommunications equipment maker Alcatel-Lucent said Tuesday that it no longer expects to post a stronger operating margin this year, as it unveiled a third-quarter operating loss.

“In light of year-to-date performance and the difficult macro-economic environment, Alcatel-Lucent will not be able to achieve its previously announced adjusted operating margin guidance for the full-year 2012,” a statement said.

Shares in the company plummeted by 11.73 percent to 1.00 euro in early trades on the Paris stock exchange, while the CAC index of leading stocks was 0.15 percent higher overall.

The group had initially said that its operating margin this year would surpass the 2011 figure of 5.64 billion euros ($6.93 billion).

That number represented 36 percent of total revenues last year.

But the company added that “based on the current order book, Alcatel-Lucent expects the second half of 2012 to be better than the first half.”

It posted a provisional second-quarter adjusted operating loss of around 40 million euros, compared with a profit of 108 million euros in the same period a year earlier.

Sales in the period fell to 3.5 billion euros from 3.9 billion.

Full details of the second quarter exercise and annual targets are to be published on July 26.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...