Alcatel-Lucent plunges after third warning |
| MSNBC - Sep 13, 2007 |
Shares in Alcatel-Lucent plunged by as much as 14 per cent in Paris on Thursday after the troubled Franco-American telecommunications equipment maker stunned the market with its third outlook warning this year.
The group, formed last year from the €11.1bn merger of France's Alcatel and Lucent of the US, said it was forced to slash its forecast for full-year revenue growth from mid-single digits to nearly zero as a result of a slowdown in capital spending among its wireless customers in North America.
The group had counted on higher volume sales to compensate for the aggressive price cuts it has undertaken this year in order to compete with Ericsson for clients. Although the group is the market leader for fixed-line network equipment, it lags behind its Swedish rival in wireless hardware.
Read Full Article from MSNBC
- Posted: 2007-09-13 10:11:21
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