AT&T's new chief plans bold agenda; aggressive cost cutting, investments are aimed at bolstering company

Article Abstract:

AT&T Chmn and CEO C. Michael Armstrong plans a crash program to improve the telecommunications giant's competitive position, according to executives close to the company. Plans call for cost reductions and targeted investments in local phone, Internet and global services. Armstrong's plan, still in formulation, will attempt to curb rival incursions into AT&T's core communications business. The plan is especially targeted at the Baby Bells, which plan expansion into its long-distance business. Executives said Armstrong plans to centralize marketing, continue selling tangential assets, discontinue other operations and invest in myriad networks to widen AT&T's international services. Armstrong also is collaborating with AT&T Pres John D. Zeglis on a lobbying campaign to support resuming merger discussions with Bell giant SBC Communications or combining with another large local phone company. Another plan consists of tying at least 75% of managers' compensation to company performance.

Management, Planning, AT&T Corp., T, Economic policy, Company business planning, Armstrong, C. Michael

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Lucent profit beats analysts' estimates; large gains are derived from switches, systems used by phone carriers

Article Abstract:

Lucent Technologies' 25% increase in 4th qtr revenue exceeds analysts' expectations. Net income for the period increased to $255 million, or 40 cents per share. Revenue increased to $5.92 billion. The per-share earnings were three cents above expectations. Lucent is enjoying an improved relationship with the RBOCs since it was spun off by AT&T. The increase in earnings is the result of improved sales of switches, wireless equipment and other telecommunications devices used by telephone companies, as well as sales of microchips employed in cellular telephones and networks. Sales of telephones and other consumer electronics products declined. The company's stock price rose $1.625 to $50 on the New York Stock Exchange. Lucent Microelectronics' revenue increased 27% to $631 million, primarily because of sales of DSPs used in cellular phones. The company is now the leading vendor of cell-phone chips.

Finance, Lucent Technologies Inc., LU, Company sales/revenue, Company sales and earnings, Company earnings/profit

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