Alcatel-Lucent Posts Rise In Q4 Profit

reported a rise in its fourth-quarter profit. Alcatel-Lucent posted a quarterly net profit of EUR271 million ($311 million), or $0.08 per share, versus a year-ago profit of EUR134 million, or $0.05 per share. Operating profit, excluding items, surged to 284 million euros ($325 million). Overall revenue shrank to EUR3.68 billion from EUR3.93 billion. Analysts were expecting net income of 201 million euros on revenue of 3.69 billion euros. Revenue at its wireless division declined 9% y/y at constant exchange rates to EUR1.21 billion while revenue at IP transport division climbed 3% to EUR649 million. IP Platforms revenue fell 15% to Euro 489 million, while IP Routing revenue climbed 15% to Euro 664 million. Gross margin widened to 34.7% from 33.4%. Michel Combes, CEO of Alcatel-Lucent said, "Our fourth quarter and full year 2014 results underline the success of our turnaround. Through the execution of The Shift Plan, we have improved our underlying profitability and free cash flow profile while we have solidified the entire organization. Entering 2015, we are in a strong position to capitalize on profitable growth opportunities and will focus on operational excellence and quality of service. The achievements we have made in our product portfolio and operational transformation make us confident we will reach our positive free cash flow target in 2015." Alcatel-Lucent shares gained 1.66% to close at $3.67 yesterday.