Alcatel-Lucent reports reduced profit, sets aside $15m for provisions
- 11 July, 2011 22:00
Alcatel-Lucent set aside $15 million during the 2010 financial year for “additional provisions”, according to its financial statements for the year, which were filed with the Companies Office earlier this month.
In the notes to the statements, Alcatel-Lucent NZ says: “Provision for retrofit claims has been recognised for expected claims on products sold, where faults have been identified.
“Provision has been made for costs relating to restructuring. Other provisions are recognised for expected claims resulting from customer contractual obligations recognised as commercial risks.”
Much of the $15 million is likely to be related to the outages experienced by Telecom’s XT network during 2010.
Alcatel-Lucent reported an after-tax profit of $11,273,000, compared with $12,063,000 last year.
Gross profit was $48,568,000 for the year, compared with $50,166,000 in 2009.
Much of the dip in 2010 compared to 2009 seems to have been taken up by marketing expenses, which totalled $11,294,000 last year, compared with $8,172,000 in 2009.
A dividend of $24 million was paid to Alcatel-Lucent NZ’s US-based parent company.