Alcatel-Lucent defends Nokia deal as it weathers US slowdown

Paris

TELECOM equipment maker Alcatel-Lucent, which is set to be bought by larger rival Nokia, improved profit margins in the first quarter despite a marked sales slowdown in its biggest market, the United States.

Although it reported a net loss, higher software sales, a weak euro, and strong demand for its Internet routing products helped the French firm post a better quarter than Nokia and mobile market leader Ericsson.