Alcatel-Lucent (ALU): The Price of Failure

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Shares of Alcatel-Lucent (ALU) are down over 8% in European trading, as they should be. After the much heralded merger, the integration of the two companies has been a disgrace.

Revenue in the second quarter fell from 4.491 billion euros last year to 4.326 billion. The company swung to a loss of 336 million euros. Gross profit fell sharply.

ALU is a company where the merger and the benefits of the transaction to put the two telecom gear companies never seems to end. The deal promised big savings and improved revenue from a larger global marketing force.

The CEO, Patricia Russo, has achieved none of the above. But, she does get to stay in Paris a lot.

Douglas A. McIntyre