PARIS: Shares in Alcatel-Lucent soared on Thursday after the French-US telecommunications equipement manufacturer said it had switched into operating profit thanks to restructuring measures.
The company, which earlier this month announced it planned another 10,000 job cuts with two years as tries to reduce costs and refocus its business, said it had an operating profit of 2.6 percent of sales in the third quarter.
Analysts have said that the latest restructuring plan is a last chance for the group.
The operating profit of 95 million euros or $130 million in July through September, compared to a loss of 182 million euros in same period last year.
"We are seeing the first positive signs of our new operating model in our day-to-day business and are encouraged by the substantial progress" in the restructuring plan, chief executive Michel Combs said in a statement.
The company posted a net loss of 200 million euros in the third quarter, which included 117 million in restructuring charges.
Alcatel-Lucent had posted a net loss of 316 million euros in the third quarter of 2012.
The company's share was up 18.6 percent to 2.80 euros in morning trading while the Paris CAC 40 index was down 0.43 percent. (AFP)