Alcatel-Lucent slashes 2007 revenue forecast

PARIS -- Alcatel-Lucent SA shares fell nearly 9 percent Thursday after the telecommunications equipment maker slashed its full-year revenue growth forecast and said it expects third-quarter operating profit to be "around break-even."

In a statement, Alcatel-Lucent said it expects revenue growth in 2007 to be flat to slightly up at a constant exchange rate. Alcatel-Lucent said the revision reflects recent discussions with wireless customers in North America.

"Alcatel-Lucent is now seeing a change in capital spending with those customers in 2007, compared to what it had anticipated," the company said.

U.S.-traded shares of Alcatel-Lucent fell 8.8 percent to $9.16 Thursday, down 88 cents.

HPC research head Andre Chassagnol said Alcatel-Lucent has been unable to enact its restructuring plan in France and cut costs due to recent senior management departures. The restructuring plan was approved by unions only days ago, Chassagnol said.

"Alcatel-Lucent is faced with a drop in product prices but the costs remained the same," Chassagnol said.