Here is a look at more of Thursday's top business stories:
Lucent issues earnings warning
MURRAY HILL, N.J., Dec. 13 (UPI) -- Troubled telecom manufacturer Lucent Technologies lowered its fiscal first quarter projections and now expects to post a loss from continuing operations of 23 cents to 26 cents a share.
Most analysts on Wall Street had been expecting Lucent to post a loss of 17 cents a share, according to Thomson Financial/First Call.
Lucent said it expects "significant" revenue decline in the quarter ending this month coming in at $3.1 billion to $3.4 billion, down sharply from the $4.8 billion it posted in the prior quarter.
Lucent said the lower revenue outlook reflected what the company believes is an industry-wide reduction in spending for network infrastructure and related services.
The company also said it believes projected revenues for the first fiscal quarter will represent the low point for Lucent sales in this current market downturn.
"We continue to move swiftly and decisively on all points of our Phase II restructuring program, which is driving sequential improvement in our bottom line, despite this reduction in sales," said Lucent Chairman and Chief Executive Officer Henry Schacht.
Commenting on the second fiscal quarter of 2002, Schacht said, "An early view of our sales funnel continues to suggest an improved sequential top line performance and continued sequential improvement in the bottom line in the second fiscal quarter, on a pro forma basis."
Schacht also reaffirmed that Lucent expects to return to profitability and positive cash flow during fiscal year 2002.
He also affirmed the company's intent to use the financial results from the quarter ending March 31 to meet the financial covenants to move forward with the spin off of Agere Systems.
Boeing to keep building 717 jet
CHICAGO, Dec. 13 (UPI) -- Aerospace giant Boeing Co. said it will keep building its 717 jetliner but at a reduced rate and will take charges totaling about $700 million related to the Sept. 11 attacks.
Boeing said after a thorough evaluation of the program and market, it has made a business decision to continue production of the 717.
"The 717 is the leading 100-passenger airplane. However, due to reduced near-term demand following the events of Sept. 11, the program will go forward with a lower production rate and revised delivery projections," Boeing said.
Boeing said it still expects commercial airplane deliveries to total 522 for 2001. It forecast delivery of 350 to 400 aircraft in 2002 and a continued downward trend in 2003.
Boeing, the world's largest planemaker, had considered shutting the Long Beach, Calif., 717 line amid a devastating slump plaguing Boeing's airline customers.
Earnings improve at H.J. Heinz
PITTSBURGH, Dec. 13 (UPI) -- Ketchup maker H.J. Heinz Co. said its fiscal second quarter net income for the period ended Oct. 31 rose to $208.2 million, or 59 cents a share, from $190.0 million, or 54 cents a share during the same period last year.
Analysts on Wall Street had expected Heinz to post a net income of 59 cents, according to Thomson Financial/First Call.
Sales rose 11.7 percent to $2.57 billion from $2.30 billion a year ago.
During the quarter, the company said, its ketchup in the U.S. continued to increase dollar market share with its latest 52-week share now at record levels, reaching nearly 60 percent, a 4.5-point gain over last year.
"After an intense period of restructuring, the Heinz supply, manufacturing, sales and distribution networks will be leveraged for greater productivity and efficiency," said Chairman, President and Chief Executive Officer William R. Johnson.
"Heinz has a very strong brand focus with five mega brands driving almost 50 percent of global sales. The Heinz brand itself, with almost $3 billion in sales, recently ranked No. 1 in America in consumer satisfaction and loyalty by a University of Michigan brand survey. We will continue to invest in these great brands to provide innovative food solutions to consumers around the world," Johnson said.
Heinz also confirmed that it is on track to deliver profits for the second half of fiscal 2002 in line with those of the first half.
The company said it expects third -quarter results to be slightly less than the second quarter; an improved fourth quarter is anticipated.
Heinz also announced a proposed expansion of its alliance with Kagome, Japan's leading food brand and that nation's largest ketchup producer.
Under the agreement, Kagome would acquire a 51 percent stake of a new joint venture named Heinz Japan Limited with Heinz acquiring a 5 percent stake of Kagome.
The new agreement will enable Heinz to significantly improve its Japanese business as it works with Kagome to leverage its highly successful go-to-market capability, the company said.
