Alu margins suck,,,,cost cutting is anemic....sales outside of USA suck....They need serious cost cuts,,,not BS...Sell a lot of products but cannot make any money
HhaaaaaAA. Haaaaawwwww... Looks like u are getting roasted.
alu is not a trade dude...it's an investment for 2015. Wait till they sell low margin sub ...you'll be roasted.
Oh.. And another thing..combs upped his target this year by min additional 50 million.
Yeah yeah yeah... Alu is in the billions in sales dude.. Stock sees daylight it will be double digits.
Actually, margins are much improved, and cost-cutting is accelerating....but I agree that sales outside the US suck....and represent a huge problem that must be addressed.
Were it not for the US, the Q would NOT have been good. And we would not be celebrating right now. It is not good for a global company to rely upon just one market. If the US market were to stumble even for a Q, it would be a pretty big problem.
Now, don't get me wrong, I am happy to benefit from a good Q, no matter how it comes about. But ALU needs to do something about lessening their reliance upon the US.
I am sure the company recognizes this. But reality is that they probably hope to rely upon the US market for another year or so, as they continue to apply solutions to cut their cost structure....which will make them more competitive on a global basis.
Thus far, Michel is off to a very good start.
Let's keep it simple:
"Alcatel-Lucent (NYSE:ALU) saw second-quarter profit of $32 million and a 1.9 percent increase in sales, smashing analyst expectations that the network equipment maker would see a loss and revenue decline. The company’s earnings were helped by a recent investment from Qualcomm (NASDAQ:QCOM). The Paris-based company still has to undergo reorganization in the coming months, facing job cuts and asset sales in the process."