Alcatel Chief Looks to Ericsson for Lessons in Turnaround

Alcatel-Lucent SA Chief Executive Officer Michel Combes, taking the reins after his predecessor’s turnaround plan failed, told shareholders today keeping the pace of cash consumption under control and focusing on fewer businesses are among the network-equipment maker’s priorities.

In his first address to investors, Combes said Alcatel-Lucent could emulate Ericsson AB, which a decade ago focused on mobile equipment and reorganized its workforce to grow the Swedish company into the world’s largest vendor of wireless networks. Alcatel-Lucent will use divestments and partnerships to help stem losses, said the 51-year-old Frenchman, who took over from Ben Verwaayen last month.