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Alcatel-Lucent to sell assets, reduce costs in three-year plan

Alcatel-Lucent announced what it called "The Shift Plan", a three-year plan to reposition the company as a "specialist provider of IP Networking and Ultra-Broadband Access, the high-value equipment and services that lie at the heart of the high-performance networks of tomorrow." Alcatel sad the key parts of the plan are as follows: A refocusing of the group's R&D spending on IP Networking and Ultra-Broadband Access with an increased emphasis on co-development with major customers and partners, while at the same time significantly reducing spend on legacy technologies; Euro 1B in targeted reductions in the group's fixed cost structure concentrated on actions to reduce sales, general and administrative expenses, refocus R&D and improve operational efficiencies; Selective asset sales intended to generate at least Euro 1B over the period of the plan; Aiming at reprofiling the group’s debt and a future reduction in debt. Under The Shift Plan, Alcatel-Lucent is planning to grow its revenues in Core Networking by more than 15%, from Euro 6.1B in 2012 to over Euro 7B in 2015, while lifting its operating margins in this segment from 2.4% in 2012 to more than 12.5% in 2015. Michel Combes, who was appointed CEO on April 2, also announced that effective July 1, Philippe Guillemot is joining Alcatel-Lucent's leadership team as Senior Executive Vice President, Operations. Guillemot was Chairman and CEO of Areva T&D. Paul Tufano, CFO of Alcatel-Lucent, will step down from his role once implementation of The Shift Plan is under way.