Alcatel Shares Double Since Combes Became CEO

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Nov. 04 (Bloomberg) -- Bloomberg’s Marie Mawad reports on Alcatel-Lucent’s new CEO and his strategies to make the company more profitable. She speaks on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)


This has got shares down but if you put that into context of since he has a right of the company, shares have actually more than doubled since then.

Nearly tripled.

What he is doing is delivering on his promise to turnaround alcatel lucent.

After accumulating your than -- nearly $10 billion of losses since it merged, when he is doing here is reducing debt or seeking to reduce debt to alleviate the company's debt structure.

That is step three of his plan.

The first step was to cut jobs.

He is announced he will cut positions at the company.

Step two was to show he could deliver on earnings.

He has beat expectations two quarters in a row.

Now he is moving to the debt side of the equation.

Hans nichols here.

To go back to the first part of the plan, the 10,000 job cuts, what is the timeline for that?

Is there any give at all given what they are seeing on the private side?

Are they sticking with that $10,000 target?

They are sticking with that target.

They have announced a few months back and right now that is being negotiated within the company.

In some countries, it is tougher than others that they have to go through works council associations.

They are sticking with that target.

The hope that alcatel lucent is that those 10,000 job cuts will bring the company one billion euros in savings by 2015. give us a sense -- alcatel lucent has been trying to be profitable since 2006. this is when the two companies merged.

Why has it been so difficult?

It has been tough since the merger because of a multitude of factors.

The company has tried to cut jobs.

It has tried to sell assets.

It has tried to cut costs.

It has hired multiple ceo's to try to turn things around.

The market is not easy on one hand.

Competitors are also suffering.

There is very tough competition including from asian rivals like huawei technologies which has come into that market in the past decade with low prices and a lower cost structure.

We have seen rivals also try to cut costs by cutting jobs.

Maybe alcatel has been more slow at doing that.

What the new ceo is trying to do is catch up to rivals and that is what he has promised to do in the next two or three years.

Cut jobs, sell assets, get back to the level that his rivals like nokia solutions or ericsson are at.

Catching up to rivals is the story of new ceos everywhere.

Thank you.

Diageo is betting big on small levels in africa.

The maker of smirnoff vodka and johnnie walker whiskey has introduced a 20 centimeter container in sub-saharan africa.

For more, let's bring in clementina fletcher.

Thank you so much for coming on.

Why is diageo's targeting africa?

It is the next big growth market.

We have heard all about europe

This text has been automatically generated. It may not be 100% accurate.


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