Alca-Lu posts €1bn loss, Verwaayen steps down

Paris-headquartered telecoms equipment vendor Alcatel-Lucent has posted a net loss of €1.374bn for 2012, compared to a net profit of €1.095bn for 2011, and revealed that Ben Verwaayen will be standing down as CEO after four years at the helm.

Total revenues for 2012 reached €14.446bn, down 5.7% from the previous year, with a small improvement by its Software, Services and Solutions (S3) division unable to compensate for bigger declines for both its Networks and Enterprise businesses.

The Networks division posted a 9% fall in full-year revenues to reach €8.819bn, while the S3 division saw a 2% gain to reach €4.564bn, and the Enterprise business posted a 7% decline with 2012 revenues reaching €764mn.

Ben Verwaayen, outgoing CO of Alcatel-Lucent

Ben Verwaayen, outgoing CO of Alcatel-Lucent

Verwaayen commented: “Our fourth quarter reflects the early progress of The Performance Program announced last July. We announced clear choices on where we would operate, how we would operate and where we would differentiate.”

“We have seen progress on all these choices, and close 2012 ahead on our cost reduction plans. We have addressed half of the previously margin-diluting Managed Services contracts, and show continued and strong growth in IP and Next Generation Wireless. We can see a clear statement of customer confidence through growth in both our order book and backlog.”

The outgoing CEO added that this year Alcatel-Lucent will remain focused on completing The Performance Program, which involves reducing the firm’s overall headcount by 5,500 jobs by the end of 2013, and plans to deploy resources to customer relationships and in product areas where Alcatel-Lucent can “drive an economic return for our shareholders”.

Commenting on the Verwaayen’s resignation, Chairman of the Board Philippe Camus said “After due reflection, the Board has accepted Ben’s decision to step down as CEO. Over the last few years, Ben has set a new direction, created one company out of two, and has recently seen through the completion of the stabilisation of the company’s balance sheet, enabling us to move forward with confidence.”

Camus added: “The Board wishes to record its thanks to Ben, and will take full advantage of him remaining in the role as CEO whilst the Board runs a full and independent process to find a successor, looking at both internal and external candidates”.

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