gold 4 rs Turnaround strategy through new

Turnaround with new strategy

Everything is different and better course. This is the message that, recently announced Michel Combes, since April new Alcatel-Lucent Chief with the new shift schedule. Purpose one must know the history. Alcatel-Lucent is a for years chronically unsuccessful industry giant in the telecom equipment industry. Ex CEO Ben Verwaayen had wanted to bring about in part by massive job cuts the turnaround - and failed.

The Shift plan to turn the tide

Alcatel-Lucent is in a highly competitive market, looking at the next competition from the industrialized countries, especially Chinese companies such as ZTE and Huawei to cut prices to gain market share. On the customer side, there is not least because of austerity in public administrations, budgets lower, while in the company's many investments have been postponed because of the weak global economy. Although, investments in network infrastructure not be delayed on time, but for Michel Combes was obviously clear that more needs to be done to remove the back a few thousand places. At the end of 2012, the company employed about 72,000 people still. In addition to sales of assets worth one billion euros and cost reductions in the volume of another billion euros over the next three years, Alcatel-Lucent, has opted for a clear focus: Only the fast broadband Internet should be the future core business. Thus, in the mobile sector, the 4G LTE technology is meant in the fixed fiber optic technology. To continue mitzumischen in these areas technologically at the top, to the research and development spending by 2015 in these areas make up about 85 percent of the total budget.

Also, the management staff was renewed. In addition to the ex-Michel Combes Michelin man Philippe Guillemot is new on board who will chair the conversion instead of the former CFO Paul Tufano. To his task Guillemot is not to be envied, because in addition to the corporate conversion, it also goes to reducing the debt. By 2015 this will be reduced to two billion euros. After all, there were short-term liquidity difficulties at Alcatel-Lucent has not, and Michel Combes stressed that it will not give them.

On the stock market, the plans were far to good, but the response from the analysts was divided. While were as good as all the experts agree on is that the Shift plan properly and an important step for Alcatel-Lucent in a better future, but were so many analyst considered that the objectives are very ambitious and the risk of large, that the plans could not be implemented as hoped. correspondingly large bandwidth of the recommendations and price targets. Analysts see 12 Alcatel-Lucent currently a purchase, 8 and 11 as a holding position as a sales position.

Alcatel-Lucent continues to be a turnaround story that with the new boss and the new strategy has a good chance to put the company back on track. The success is by no means certain. On the stock there are interesting bonus certificates that still allow for a high risk buffer attractive returns. The exact order details for the certificate, see the current issue of DaxVestors.