Alcatel-Lucent Sticks With Growth View

Alcatel-Lucent reported a second-quarter loss that was wider than expected, but said it was sticking with its growth outlook for the year.
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PARIS (

TheStreet

) --

Alcatel-Lucent

(ALU)

reported a second-quarter loss that was wider than expected, but said it was sticking with its growth outlook for the year.

The loss in the quarter was €184 million ($240.2 million), compared with a year-earlier profit of €14 million. Analysts had expected Alcatel-Lucent to lose €44 million in the quarter.

Alcatel-Lucent said for 2010 it aims to reach an adjusted operating margin of between 1% and 5%. Its margin for the second quarter was 0.7%.

The maker of telecommunications gear said second-quarter revenue was €3.81 billion, up 17.4% sequentially, but down 2.4% from last year.

CEO Ben Verwaayen said that while the supply chain remains stretched "the demand for telecommunications equipment and related services is recovering."

"Alcatel-Lucent is preparing for a strong second half of the year, backed with a growing order book," Verwaayen said. "As sales trends continue to improve and we continue to see the benefits of our actions on costs, the leverage effect at the operating profit level will be significant. We maintain our full-year outlook."

-- Reported by Joseph Woelfel in New York.

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