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Alcatel-Lucent merger results disappoint

Flat revenues

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Alcatel-Lucent said today it expects revenues for the fourth quarter of 2006, ended 31 December, to be about €3.87bn - essentially flat on last year.

The firm blamed spending shifts in north America, expecially in the last quarter, for the shortfall.

The company expects to make revenue of €12.3bn for the full year and reported operating income of €0.71bn.

On an adjusted pro-forma basis it expects fourth quarter revenue of €4.42bn, compared with €5.25bn in 2005. Operating profit for the quarter will be zero rather than €570m in the same period of 2005.

Restructuring costs, mainly related to laying people off and "product rationalisation", were €800m. Alcatel shares fell heavily on the news.

Alcatel and Lucent merged in April 2006 after a $13.6bn share swap.

It will provide audited results on 9 February. ®

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