Alcatel-Lucent loss narrows in Q1

PARIS - Alcatel-Lucent SA, said Friday its net loss reduced significantly in the first quarter from the previous year, when a shortage of components telecommunications equipment manufacturer's losses due to the bubble.

Based in Paris Alcatel-Lucent said that the increase in the demand for the broadband networks around the world who has lifted sales at the end of last year continued in 2011.

It reported a net loss of euro10 million ($14.8 million), compared to euro515 million a year earlier and confirmed its financial Outlook for this year.

Adjusted - measurement preferred for profitability - operating margin is expected to rise to more than 5% this year, compared to 1.8% in 2010.

The company said years of restructuring following the 2006 Alcatel merger and Lucent, based in the United States have begun to repay.

Shares of Alcatel-Lucent cast at the beginning of trading on the Paris stock exchange, falling from 4.2% to euro4.11.

Chief Executive Ben Verwaayen called the first quarter performance "a strong start of the year" and forecasts more improvement on the rest of the year.

"Market momentum remains strong, driven by the demand for more capacity and service capabilities in several geographical areas" said Verwaayen.

Alcatel-Lucent sales grew by 15.2% to euro3.74 billion, with particularly strong growth in North America, its largest market.

Sales grew up 40 per cent to euro1.56 billion in the first quarter, boosted by demand for telephone companies that upgraded their networks to meet the growing demand for smart phones such as iPhone and BlackBerry.

Alcatel-Lucent, which has its North American headquarters in Murray Hill, New Jersey, has struggled for years to return to profit, with total losses since the company topping transatlantic tie-up now euro9 billion.

In addition to the restructuring in the first half of last year offset a return to profit in the second half, leaving euro334 million net loss for the whole of the year of Alcatel-Lucent. Verwaayen is committed to return to the company's annual profit this year.

Alcatel-Lucent provides telecommunications such as AT & T, Verizon and France Telecom carriers. It is in competition with European rivals such as LM Ericsson AB of Sweden and Nokia Siemens Networks of Finland.