Shares of Lucent Technologies Inc. plunged nearly 16 percent Thursday after the company warned that profit and revenue growth for the remainder of the year will be slower than expected.
The warning came as Lucent reported a net loss of $301 million, or 9 cents per share, for the fiscal third quarter because of hefty charges for acquisitions and discontinued operations.
Excluding those one-time items, Lucent earned $1.01 billion, or 30 cents per share. Analysts surveyed by First Call/Thomson Financial were expecting 23 cents per share. In the year-earlier period, Murray Hill, N.J.-based Lucent earned $732 million, or 23 cents per share.
Third-quarter revenues grew 20 percent, to $8.71 billion from $7.25 billion a year earlier.
But the earnings results were obscured by a warning from company officials that income for the next two quarters would be considerably below analysts’ expectations.
Lucent blamed a shift from older switching products with high profit margins to newer ones with lower margins, among other factors.
On Thursday, Lucent’s stock, one of the most widely held in the country, fell $10.31, to $54.19.
In other earnings reports:
– Caterpillar Inc., the Peoria-based machine manufacturer, reported an 11 percent increase in second-quarter profits on greater manufacturing efficiency despite a slowing in the U.S. economy.
Net income was $315 million, or 90 cents per share, up from $283 million, or 78 cents per share, in the year-earlier period. Revenues increased 5 percent, to $5.36 billion from $5.10 billion.
– America Online Inc. said it more than doubled its fiscal fourth-quarter profits, easily beating Wall Street estimates as revenues surged 40 percent.
The Dulles, Va.-based Internet giant reported net earnings of $338 million, or 13 cents per share, up from $157 million, or 6 cents per share, a year earlier.
Analysts surveyed by First Call/Thomson Financial had pegged earnings at 11 cents per share.
Revenues were $1.93 billion, up from $1.38 billion in 1999.
– Helped by heavy demand for international deliveries, United Parcel Service Inc.’s second-quarter net income rose 18 percent, to $695 million, or 60 cents per share, in line with expectations.
In the year-earlier period, UPS earned $588 million, or 52 cents a share, from ongoing operations. Revenue was $7.28 billion, up from $6.56 billion.
