Lucent: "A Large Battleship With Gaping Holes"

In addition to plunging earnings, a brain drain is building

Lucent Technologies Inc. CEO Richard McGinn is going to have one tough time surviving after that company's latest fiasco. On Oct. 10, for the third time this year, he hastily summoned analysts to a conference call for a grim announcement: Earnings for the most recent quarter would be just 17 cents to 18 cents, far less than the 15% increase previously promised. He also announced that fourth-quarter and 2001 earnings would be below estimates. Lucent shares, which were already down 58% for the year, lost another third of their value, falling to $21.25 one day later. "It is clear there must be a major retooling of the Lucent business," admitted McGinn.

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