International Herald Tribune
03-01-2005
Didier Lombard, a senior executive at France Telecom, has been named to succeed Thierry Breton as chief executive, and the new leader will face two mammoth tasks: Pay down towering debt and secure the company's position as Europe's No. 2 operator in a fast-shifting telecommunications landscape. ''We will resolutely follow our strategy as an integrated operator,'' Lombard, 63, said in a statement posted on the company's Web site on Sunday, when the appointment was announced. Breton, 50, was named finance minister on Friday after a housing scandal engulfed, then toppled, his predecessor, Herve Gaymard, 44. Breton is widely credited with bringing France Telecom, the centerpiece of France's privatization project, back from the brink of collapse. His earlier-than-expected departure still could stir anxiety among investors about the company's priorities and Lombard moved swiftly late Sunday evening to assuage any jitters. Lombard, until Sunday senior executive vice president for technologies and strategic partnerships, vowed to ''continue to follow the path of operational excellence while respecting our financial commitments.'' Analysts said France Telecom's board had opted for continuity by appointing Lombard, a mentor to Breton and a mastermind behind France Telecom's turnaround. ''Lombard and Breton have been an effective duo and Lombard should continue the existing strategy focused on innovation and transformation,'' said Lars Godell, principal analyst for European telecommunications at Forrester Research. ''The board seems to have made a decision based on expertise and not just politics, which is always a danger in France.'' Lombard is an engineer and his technical background dovetails with France's current focus on embracing risk and promoting growth. Lombard also served for a decade in government, where his ties could ease France Telecom's relations with unions as well as help the company to win favorable tariffs. Breton, who was in charge at France Telecom for two and a half years, is widely credited with turning around the company's fortunes after a liquidity crisis in 2002 that was triggered by the stock market's downturn but rooted in an acquisition spree under Michel Bon, the former chief executive. A key part of Breton's strategy has been overhauling a complacent corporate culture by offering incentives to researchers to produce new technologies and encouraging executives from Wanadoo, the company's Internet unit, and Orange, the mobile unit, to collaborate. Breton cut the company's debt by 28 billion, or $37 billion, and returned it to profit after it notched up a loss of 20.7 billion a French record in 2002. Profit last year was 2.8 billion, down from 3.2 billion in 2003. Breton also oversaw a partial privatization that brought the government's holding below 50 percent for the first time. But financial analysts warn that the company is only two years into an ambitious three-year restructuring plan and that it is too early to tell how well France Telecom has weathered the recent crises or if the company has the right formula to sustain profitability. ''France Telecom has come a long way in dealing with some of its most daunting internal problems,'' said Marc Laporte, general manager for technology consultants IDC in France. ''Now everyone's watching whether France Telecom continues its aggressive innovation and how it will compete across Europe.'' A spokesman said Sunday evening that France Telecom would set new targets until 2008 during the first half of this year. France Telecom was the world's most heavily indebted company when Breton took the helm. Since then, the company has sold some assets, integrated others, raised cash and cut costs. Its debt stood at about 44 billion at the end of 2004, down from a high of over 70 billion. Breton's tenure cheered shareholders, who saw their stock more than triple in value. The shares traded in Paris down 19 cents early on Monday, at 23.03.
2005 Copyright International Herald Tribune. http://www.iht.com
Комментариев нет:
Отправить комментарий