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Alcatel-Lucent CEO: Turnaround just needs time

Thursday, 31 Oct 2013 | 3:02 AM ET
Alcatel-Lucent needs more time to 'turn around': CEO
Thursday, 31 Oct 2013 | 3:15 AM ET
Michel Combes, CEO of Alcatel Lucent, says the company needs "a few extra quarters" to "really turn around".

Alcatel-Lucent , the French telecoms giant, just needs "a few additional quarters to really turnaround," its chief executive told CNBC as it announced reduced losses in the third quarter.

Michel Combes said: "We are still at the beginning of our plan. We need a few additional quarters to really turnaround." The company's share price rose by 14 percent in early trading Thursday as the market welcomed the news.

Bloomberg/Contributor | Bloomberg | Bloomberg via Getty Images

The telecom equipment maker posted revenue up by 7 percent on a constant currency basis, and a narrower net loss of 200 million euros ($274 million) in the third quarter compared with the same period last year. It was boosted by double-digit growth in the highly profitable U.S. market. Analysts had expected a net loss of 139.4 million euros, according to Reuters.

Combes added that the company, which is getting rid of 10,000 employees, was ahead of their plans in reducing costs and is "strongly reducing" cost structure.

"This plan will be successful," he argued.

Asked about rumors cellphone giant Nokia may buy the company's wireless unit, he said: "My focus is to reposition Alcatel-Lucent to win and I am 100 percent focused on the execution of this plan."


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