The telecom equipment maker has been hurt by a weak dollar and a lack of competitiveness in wireless. But the outlook for the sector overall is strongerIn an industry buffeted by slowdown, Alcatel-Lucent may be taking more than its share of lumps.
The world's largest maker of telecom gear on Apr. 30 reported a larger decline in sales than analysts were expecting and forecast a full-year drop in revenue. The Paris-based company blamed weakness in the U.S. dollar, which erodes the value of sales in the U.S. Excluding currency swings, sales would have risen 6.3%, Alcatel said.
Still, Alcatel is faring worse than other telecom equipment makers, keeping pressure on company CEO Patricia Russo to turn the company around. While Alcatel has focused on the 2006 Lucent acquisition, its rivals have been introducing new products and grabbing share from companies such as Nortel Networks (NT) in the fast-growing wireless market, where Alcatel lacks key products. Alcatel (ALU) shares slipped 5.5% on the New York Stock Exchange.
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