Alcatel-Lucent’s Q2 results impacted by write-downs

Alcatel-Lucent has reported that its quarterly losses more than doubled in Q213 due to write-downs despite seeing an improvement in its revenues.

The company posted a net loss of €885 million (US$1.17 billion) for the three months to the end of June, which included a write down of €552 million on the value of its assets, along with €194 million of restructuring charges and a financial loss of €180 million.

Revenues were however up slightly at €3.6 billion, a rise of 1.9 per cent over the previous year. Of the total, the networks division posted revenues of €3.06 billion, although there was a slight decline in wireless networks sales.

The gross margin was 31.9 per cent, similar to last year and improving compared to Q113 as a result of higher volumes and a more favourable product mix.

Commenting on the Q2 results, Michel Combes, CEO Alcatel-Lucent said: "We are at the beginning of our journey towards 2015 and cash remains a challenge. Looking ahead, our clear focus will be maintaining a strict and disciplined approach to implementing The Shift Plan across all of its industrial, operational and financial dimensions."