Telecom equipment maker Alcatel-Lucent has just posted its first annual net profit and is promising improved margins this year.
However reduced spending by telecoms operators, especially in debt burdened Europe, is handicapping its turnaround efforts.
The Franco-American group’s fourth-quarter results were in line with forecasts at the end of a year in which it managed a net profit of 1.1 billion euros.
Chief Executive Ben Verwaayen admitted that there was more work to be done.
“Our aim was to be a so-called normal company by the end of 2011, and we didn’t make all our targets there, that is fair to say,” Verwaayen said.
“So we are moving on, and we are confident that we will make more improvements this year and more progress.”
Alcatel-Lucent confirmed an earlier goal that the group planned to reduce costs by 500 million euros this year. Unions have said the company plans to cut 1,800 jobs, and the company said some staff would be relocated or repositioned.