dropped 11% after the struggling French telecom equipment giant cut its financial targets once again.
The Paris-based company said it expects to post a breakeven third quarter on an operating basis and trimmed its 2007 revenue growth forecast. Alcatel-Lucent said it sees revenue for the year flat to slightly up at a constant euro-dollar exchange rate. Previously the company projected mid-single-digit growth for the year, percentagewise.
The company blamed a slowdown in purchases by North American wireless customers but said it expects to keep cutting costs. The news comes as rivals such as
push to expand their market share in a fiercely competitive market for telecom gear.
"Given ongoing dynamics in the rapidly changing telecom industry, the company is taking steps to accelerate the execution of its current restructuring program and to implement additional focused cost reduction plans in markets which require further actions to be taken," said CEO Pat Russo. "While the company acknowledges that it is competing in a challenging market environment and executing a complex merger, it remains confident that it has the right combination of people and assets to position the company as a leading player in the industry."
Shares fell $1.11 to $8.93.