Alcatel Cost Cuts Help Combes Show Network Maker Can Survive

Alcatel-Lucent SA’s Michel Combes prompted a 19 percent jump in his company’s shares, the biggest increase in five years, by reporting earnings that helped show the French network-equipment maker can scale down to survive.

Seven months into his reorganization efforts, the chief executive officer beat analysts’ estimates for a second straight quarter, posting a narrower-than-expected 200 million-euro ($274 million) loss for the period through September. Combes will have to execute on plans to cut jobs and sell assets in the coming months to further his attempt to turn around the Paris-based company, which has lost more than $10 billion in seven years.