Alcatel-Lucent board pledges support for Russo

Alcatel-Lucent board pledges support for Russo

Alcatel-Lucent's board voiced support for CEO Patricia Russo but disappointment in the company's financial forecast.


The board of Alcatel-Lucent voiced support for the company's embattled CEO, Patricia Russo, while acknowledging it is "clearly disappointed" with declines in Alcatel's financial outlook.

Last month, Alcatel-Lucent said its revenue would be flat or up just slightly this year, after it had previously forecast growth in the mid-single digits. As a result, the company said, it would only break even this quarter.

Alcatel and Lucent carried out a controversial trans-Atlantic merger last year as both telecommunications infrastructure vendors struggled with a consolidating carrier market and growing low-cost competition from Asian manufacturers. Russo, who had been CEO of Lucent since 2002, moved to Paris to run the new company amid a merger process that brings together different national cultures and even employment laws.

Former Alcatel chief Serge Tchuruk was named non-executive chairman. Alcatel-Lucent cut 3,800 jobs in the first half of this year, and Russo said last month the company would speed up its restructuring and carry out more cost-cutting plans.

The company's American Depositary Receipts on the New York Stock Exchange (ALA), which were around US$15 earlier this year, now hover around US$10. After the board's statement Tuesday, they were up US$0.21 at US$10.33.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.


Show Comments