Alcatel-Lucent returned to an adjusted operating profit of EUR 33 million in the first quarter, compared to a loss of EUR 179 million a year earlier. The result was helped by cost reductions, with improved profitability at its Core Networking division and reduced losses in the Access division. The net loss narrowed to EUR 73 million from EUR 353 million a year ago, also supported by fewer restructuring charges and lower financial losses. Operating cash flow was still negative, at EUR 59 million versus a negative EUR 279 million a year earlier.
Revenues from continuing operations were up 0.3 percent year-on-year at constant exchange rates to EUR 2.963 billion. This excludes the Enterprise division up for sale. Core Networking revenues grew by 6.9 percent to EUR 1.352 billion, thanks to strength in IP routing and transport equipment. The division posted an adjusted operating profit of EUR 96 million, versus a loss of EUR 15 million in Q1 2013.
Sales at the Access division were down 4.2 percent to EUR 1.572 billion, mainly due to a 50.5 percent slide in managed services revenue after the company decided to exit some unprofitable contracts. Excluding Managed Services, the Access segment grew 2.1 percent year-over-year. Its operating loss narrowed to EUR 37 million from EUR 132 million a year ago.
CEO Michel Combes said the results provided a good basis to build on in the rest of 2014 and works towards the company's goal of positive free cash flow in 2015.
