Alcatel-Lucent posts first ever annual profit

Franco-American PBX maker finally gets in the black six years after merger

Alcatel-Lucent posted the first annual profit of its up-and-down six-year history in 2011.

The Franco-American comms vendor's sales last year rose 1.9 per cent at constant currency to €15.7bn (£13.1bn). Adjusted operating income stood at €610m, equating to operational margins of 3.9 per cent. These figures have more than doubled from 2010, when they were €288m and 1.8 per cent respectively.

Net profit for 2011 was almost €1.1bn after Alcatel-Lucent benefited from an increase of deferred tax assets in the US.

The fourth quarter was one of squeezed revenue but healthy margins for the vendor, with sales falling 11.2 per cent annually on a constant currency basis to €4.25bn. Q4 operating profit and margins were down slightly year on year and stood at €316m and 7.4 per cent respectively.

Last year marks the first time the manufacturer has turned a yearly profit since coming into being through the merger of French outfit Alcatel and US firm Lucent in 2006.

Chief executive Ben Verwaayen said: "I am very pleased by the responsiveness of our company to adapt to a changing business environment. This has resulted in a significant improvement in free-cash flow and an acceleration of cost-reduction actions. Overall, this concludes a second year of strong improvement in our results.

"Although visibility remains limited, our aim for 2012 is to achieve an adjusted operating margin higher than the level reached in 2011, and reach a strong positive net cash position at the end of 2012."