Nortel Finally Reports Fourth-Quarter Results
Nortel Networks finally reported its fourth-quarter results including declines in earnings and revenue from the previous year.
Revenues were $2.62 billion compared to $3.27 billion for the fourth quarter of 2003. The Company’s net earnings were $133 million, down from $528 million, in 2003.
Net earnings in the fourth quarter of 2004 included $37 million of net earnings from discontinued operations; special charges of $81 million related to restructuring activities; and a benefit of approximately $134 million primarily related to customer financing recovery and settlements.
“I am proud of the progress we made during the past year, delivering solid performance in our core businesses through extremely unique and challenging circumstances,” said Nortel vice-chairman and CEO Bill Owens. “Our message is clear: Nortel is Playing to Win. In the past year, we’ve stabilized the business and laid the groundwork to move forward with velocity. We’ve taken steps to ensure ethics, integrity and transparency in our financial reporting, strengthened our world-class leadership team by recruiting new talent, and are speeding solutions to market through a partnerships and alliances strategy, while focusing on emerging markets and opportunities.”
The company is predicting revenue in 2005 to be higher than last year’s $9.83 billion.