Lucent fires CEO over profit slump

In the face of dire profit warnings, the board of directors of Lucent Technologies has replaced chairman and chief executive officer (CEO) Richard McGinn with Henry Schacht, who had the top job at the company from 1995 to 1997.

In March, Schacht was named chairman of Lucent's spinoff company Avaya, a post he will now relinquish though he will remain on Avaya's board of directors, Lucent said in a statement recently.

On October 11, Lucent revised profit estimates downward for its fiscal 2000 fourth quarter from US24 cents per share to between 17 cents and 18 cents per share and said revenue for the quarter, which ended September 30, will be in line with previous estimates of between $9.3 billion and $9.4 billion.

For fiscal 2000, Lucent expects overall profit to be 10 to 11 per cent lower than in 1999, on revenue about 14 per cent higher.

Lucent will continue with its plans to spin off its microelectronics business and sell its power systems business, the company said in a statement this week.

Lucent also announced it will release its fourth fiscal quarter 2000 results after the close of the New York Stock Exchange at 4pm EDT Monday.