French telecoms equipment maker Alcatel-Lucent has announced CEO Ben Verwaayen is to step down, as the company reports revenues for 2012 of €14.45bn, down 5.7% year-on-year.
Verwaayen said in a company statement today that, while the decision not to…
French telecoms equipment maker Alcatel-Lucent has announced CEO Ben Verwaayen is to step down, as the company reports revenues for 2012 of €14.45bn, down 5.7% year-on-year.
Verwaayen said in a company statement today that, while the decision not to seek a further term in the role was difficult, “it was clear to me that now is an appropriate moment for the board to seek fresh leadership to take the company forward”.
A former CEO of the UK’s BT, Verwaayen became head of Alcatel-Lucent in 2008 – two years after the merger between France’s Alcatel and the US’s Lucent.
Post-merger, the company has continued to struggle financially and, last December, left France’s CAC 40 index of leading companies.
Announcing its Q4 and full-year results today, Alcatel-Lucent said net loss for the final quarter amounted to €1.37bn. Adjusted gross profit for the full year stood at €4.35bn, adjusted operating loss at €260m, and operating cash flow at €693m.
Commenting on Verwaayen’s imminent departure, board chairman Philippe Camus thanked the CEO for setting a new direction for the company following the merger and helping it stabilise its balance sheet, thereby “enabling us to move forward with confidence”.
Verwaayen will remain in his role until after the board finds a successor and help with the transition process. The company plans to consider both internal and external candidates and a search committee will monitor the process.
Commenting on his departure, Verwaayen said: “The combination of our recent refinancing and the implementation of our restructuring plan will put the company on a secure footing for the successor the board will seek to appoint”.
Alcatel-Lucent said cost savings for 2012 were in line with guidance at close to €650m.
Verwaayen said the Q4 results reflect the “early progress” of the ‘Performance Programme’ announced last July.
“We have addressed half of the previously margin-diluting managed services contracts, and show continued and strong growth in IP and next-generation wireless. We can see a clear statement of customer confidence through growth in both our order book and backlog.”
He noted that the company’s recently completed €2bn financing package will enable it to extend soon-to-mature debt, further stabilise the balance sheet and finalise the performance programme.
“Through 2013 we will remain focused on completing The Performance Program. We will deploy our resources to customer relationships where we are a true partner and in product areas where we can drive an economic return for our shareholders,” he said.
