Alcatel (ALU) CEO Expects to Hit FY12 Cash Targets...Maybe with Room to Spare
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We'll have what Alcatel-Lucent CEO Ben Verwaayen is having.
Alcatel (NYSE: ALU) is no longer "on a financial precipice," said the CEO in a recent Bloomberg interview. Verwaayen noted although the cash balance target set for Alcatel in 2011 was missed, he expects to end 2012 in a better cash position.
In February, Alcatel reported negative free cash flow of €458 million for 2011 as sales in the period dipped 1.9 percent to €15.7 billion.
With the report, Alcatel also aimed to trim costs by about $661 million, expand profit margins, and cut its headcount by 1,800 positions (though Verwaayen said many would be "redistributed" within the company).
Since hitting a 52-week high of $6.63 last April, shares have slipped 64 percent to its pre-open price of $2.38 Tuesday. At the same time last year, Alcatel was trading at about $5.50 per share.
Shares are down about 2 percent early.
Alcatel (NYSE: ALU) is no longer "on a financial precipice," said the CEO in a recent Bloomberg interview. Verwaayen noted although the cash balance target set for Alcatel in 2011 was missed, he expects to end 2012 in a better cash position.
In February, Alcatel reported negative free cash flow of €458 million for 2011 as sales in the period dipped 1.9 percent to €15.7 billion.
With the report, Alcatel also aimed to trim costs by about $661 million, expand profit margins, and cut its headcount by 1,800 positions (though Verwaayen said many would be "redistributed" within the company).
Since hitting a 52-week high of $6.63 last April, shares have slipped 64 percent to its pre-open price of $2.38 Tuesday. At the same time last year, Alcatel was trading at about $5.50 per share.
Shares are down about 2 percent early.
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