Darkness Creeps Over Lucent

Having cut guidance for 2006, CEO Pat Russo has to move fast to keep on track the turnaround she just got started over the past few years

Things were looking up for telecom equipment giant Lucent Technologies (LU). Since becoming chief executive in 2002, Pat Russo had succeeded in returning it to profitability after a drought that resulted in three years of losses (see BW Online, 10/23/03, "Light at the End of Lucent's Tunnel"). She slashed jobs and beefed up the division that caters to wireless carriers, lessening Lucent's reliance on areas of telecom that are in decline. Investors and Wall Street analysts lauded Russo's efforts.

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