Alcatel-Lucent Posts Profit, Sales Fall 20%

PARIS (TheStreet) -- Alcatel-Lucent (ALU) earned 46 million euros ($63.4 million) in the fourth quarter as revenue fell almost 20% to 3.97 billion euros.

Alcatel-Lucent, a maker of telecommunications gear, said the latest fourth quarter had gains of 201 million euros, including a gain of 99 million euros from the sale of the motors and drives activity business.

A year earlier, Alcatel-Lucent posted a loss of 3.9 billion euros as it recorded hefty write-downs.

Alcatel-Lucent blamed the revenue decline on shortfalls in 2G wireless access, TDM switching, terrestrial optics and broadband access.

Alcatel-Lucent's board has recommended the company not pay a dividend for fiscal 2009.

Alcatel-Lucent said the "global economic environment ... appears to be stabilizing." It said the telecommunications equipment and related-services market "should recover in 2010."

"Given its improved product portfolio and the effectiveness of its cost reduction actions, Alcatel-Lucent feels confident in its ability to grow and increase its margins. However, in what remains a highly competitive environment, it is too early to have a firm view on the extent of margin expansion," the company said in a statement Thursday.

-- Reported by Joseph Woelfel in New York.

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