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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: William Hunt who wrote (5670)	1/21/1999 9:01:00 AM
From: Linda Pearson	Respond to of 21876

January 21, 1999 Pension Plan Helps to Fatten The Bottom Line at Lucent By ROBERT MCGOUGH Staff Reporter of THE WALL STREET JOURNAL The stock of Lucent Technologies has soared more than sevenfold since the telecom-equipment giant was spun off a few years ago from AT&T, as its projected annual earnings growth of 20% appears as predictable as a dial tone. Analysts expect more good news Thursday, as Lucent reports earnings for its fiscal first quarter ended Dec. 31. But in their enthusiasm, investors have paid scant attention to the extent that Lucent's earnings have come, not from selling telecommunications equipment, but from the effect of the great bull market on company pension funds. As at many large companies with traditional pension funds, Lucent's fund has grown so rapidly that Lucent has actually been booking income to reflect the pension plan's overabundance. This accounting maneuver has become commonplace at many large companies. Moreover, an accounting change Lucent announced earlier this month, which kicks into the fiscal first-quarter earnings being reported Thursday, makes the pension impact an even bigger factor in the future.