Losses mount, CEO out at Alcatel-Lucent
Alcatel-Lucent chief executive Ben Verwaayen has stepped down from his post just as the vendor posted a fourth-quarter net loss of almost $1.9 billion
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Alcatel-Lucent CEO Ben Verwaayen has stepped down from his post just as the vendor posted a fourth-quarter net loss of almost $1.9 billion.
For the three months to the end of 2012, the telecoms vendor posted sales of about $5.57 billion, down 1.3 percent on an annual basis. Net losses stood at $1.86 billion, compared with a net profit of 1.18 billion in the corresponding period last year.
In 2011 Alcatel-Lucent posted its first ever annual profit, six years after being formed through the merger of U.S. player Lucent with French rival Alcatel. But in 2012 it has returned to loss making, with net losses for the full year standing at more-or-less the same amount as those for the fourth quarter. Full-year revenues declined 5.7 percent year on year to just under $19.72 billion.
Former BT CEO Ben Verwaayen, who has been in the Alcatel-Lucent hotseat since 2008, announced today that he will step down from the firm after handing over the reins to his successor. A search committee has been set up to identify a new leader.
"The combination of our recent refinancing and the implementation of our restructuring plan will put the company on a secure footing for the successor the board will seek to appoint," said Verwaayen.
Board chairman Philippe Camus added: "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."
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