Ben Verwaayen, Alcatel-Lucent’s (ALU) new CEO, is doing his best to turn around the world’s largest telecommunications network equipment maker.
He took a big step Wednesday by writing down $5.1 billion of intangible assets left over from the disastrous Lucent takeover in 2006. Verwaayen told analysts that the impairment charge was necessary because of the fourth quarter’s global economic outlook and “deterioration in the marketplace.”
The move, though, contributed to yet another terrible quarter at Alcatel-Lucent – in fact, the eighth consecutive quarter of losses. Sales were down by 5.3 percent. But outside of merger-related items and the write down, Alcatel-Lucent actually exceeded analysts’ operating profit expectations. The company came in at 297 million euros; observers were hoping for 269 million euros.
Alcatel-Lucent stocks were trading at $1.87 at 1:30 p.m. Eastern on Wednesday, down a penny.
