UPDATE 3-Alcatel-Lucent Q1 loss disappoints, shares drop

* Adj Q1 op loss 254 million euros vs forecast 131 mln loss

* Q1 sales fall 6.9 percent to 3.6 billion euros

* Repeats '09 op profit to break even, H2 '10 net profit

* Shares fall as much as 7.5 pct

(Adds analyst comment)

By James Regan

PARIS, May 5 (Reuters) - French telecoms equipment maker Alcatel-Lucent (ALUA.PA) posted bigger-than-expected first-quarter losses on Tuesday as slowing economic growth hurt demand, sending its shares sharply lower.

But the company stuck to its break-even goals even as it still expects the global telecommunications equipment and related services market to decline between 8 percent and 12 percent at constant currencies in 2009.

Alcatel swung to an operating loss of 254 million euros ($336.2 million), including effects of the Lucent purchase in 2006, from a profit of 36 million in the year-ago quarter, missing the average forecast of a 131 million loss from 11 analysts polled by Reuters Estimates.

"While expected, given seasonality and tough market conditions, we are not pleased with the operating loss incurred in the first quarter," Chief Executive Ben Verwaayen said in a statement. "Our guidance for the year remains unchanged and we are taking appropriate actions."

Shares in Alcatel fell as much as 7.5 percent before paring losses to trade 3.1 percent lower at 1.895 euros by 1105 GMT. The French CAC 40 index .FCHI was 0.3 percent firmer.

Alcatel-Lucent is eliminating 1,000 management positions and reducing the number of contractors it uses by 5,000 to help reduce costs by an annualised 750 million euros by the fourth quarter of 2009, as companies and consumers are expected to cut spending on broadband and wireless technology.

BREAKEVEN GOAL

Swedish telecom equipment maker Ericsson (ERICb.ST) said last month first-quarter core profit fell by almost half, while Nokia Siemens Networks [NSN.UL] fell to an underlying loss of 122 million euros. [ID:nLU13920] [ID:nLG248661] [ID:nL5618227]

Alcatel reiterated it expected to reach around breakeven in terms of adjusted operating profit this year and to return to a net profit in the second half of next year and in full-year 2011.