Alcatel-Lucent announced today it would cut 4,000 more jobs by 2009 and forecast flat sales for this year as it posted lower revenues and adjusted operating profit for the third quarter.
The French-American group also said it would make additional savings of €400 million ($576.2 million) in gross margin and comparable operating expenses by the end of 2009, bringing the total to €2.1 billion.
Alcatel-Lucent, which has issued three profit warnings since merging in December 2006, made an adjusted operating profit of €70 million ($100.8 million) in the three months to September 30th against an operating profit of €430 million last year.
The operating profit figure leaves out restructuring costs, impairment of assets, disposals and post-retirement benefit plan amendment and excludes impacts of Lucent's purchase price allocation.
The third-quarter adjusted operating profit beat expectations of a €2.1-million loss based on a Reuters poll.
In a conference call, the group also announced the departure of its finance director in the coming weeks. "These are difficult but necessary decisions," chief executive Patricia Russo said in a statement.
"With this plan, the company is targeting gross margins in the high 30s and (adjusted) operating margins of 10 per cent or better in the post-integration phase beginning 2010."