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The Cyber Wailing Wall Where Lockheed's Soul Is Exposed Message-board postings reveal internal turmoil, dissension, and conflict. Are they real? Probably As Lockheed Martin Corp.'s earnings projections and stock price have sagged over the last year, so, too, has its workforce become increasingly demoralized and cynical. So when the Bethesda (Md.) company (ticker: LMT) announced on Oct. 22 that it would postpone release of third-quarter earnings slated for Oct. 26, the reaction on a Internet message board used by self-identified LM workers, investors, and customers was almost predictable. The company said the delay was to restate earnings to reflect a recent restructuring. But one message poster, identified with the alias of "pshoudini," said it was "interesting" that the new date, Oct. 29, was the same as the 1929 market crash. Another, named "Photonicsguy," wrote, "I smell a BIG FAT SKUNK HERE." Added a third, identified only as "corpdude99": "Early earnings whisper here is that next year's earnings and 2001 will be down again from current analyst expectations." The First Call consensus of analysts sees profits hitting $2.15 in 2000 and $2.63 in 2001. BITTER RIFT. The message board is run by Yahoo! and isn't connected to Lockheed Martin. But for those who want to take out their anger and frustration about Lockheed, it has become a virtual wailing wall. Before the Information Age, outsiders weren't privy to such inside venting and gossip. But now rumors and opinions are posted for all to see. The messages reflect a sense of deep-seated resentment against top management at Lockheed Martin and suggest a bitter rift between the engineers and business-types, who blame each other for the company's woes. Contacted through a spokesman, Lockheed Martin declined to comment on the message board. It is impossible to verify that the writers are who they say they are. But many of the postings mirror the emotions you'd expect from shell-shocked employees. Present on the message board, too, are the comments of company defenders and optimists who are sanguine that the stock will rebound. They think it's undervalued, or someone will soon take over the defense giant. Perhaps the biggest reason for the electronic bile: The company matches 401(k) contributions with Lockheed Martin stock, and employees have seen their retirement savings shrink precipitiously. Shares are so depressed that a writer with the moniker "lmttopmgmt" renamed the 401(k) plan a "201(k)" plan. Posters named "Chaalu" and "John G46" predict a stock price below $20 before long. Currently, it's trading at a little more than $22 a share, down from a 52-week high of $56.75 FINGER-POINTING. Many of the jibes are aimed at top execs such as Chairman and CEO Vance D. Coffman and President and COO Peter B. Teets, who critics charge don't know how to end the turmoil in either operations or stock trading. "Where in the hell are Coffman/Teets?" asks a writer with the alias "gollyeesback." "Mike Tyson has better public relations than LMT!!" A self-described 10-year veteran of the company who calls himself "sicktomystomach" gripes that he has tried in vain to get information from senior management. Some predict that both Coffman and Teets will be gone by yearend. But the finger-pointing extends beyond the most senior ranks. "Dukemba76" complains that "too many engineers and too few individuals with business/marketing skills have moved to top positions." That posting prompted an epithet-filled response from photonicsguy, who argues the MBAs are the problem. "It's business people who have cut engineers down so much they feel worthless," he says. Managers have created "a morale problem that even Viagra couldn't help," he says in a separate note. Most of the attention on the message board is devoted to the stock price, which continues to fall. Yet some see rays of hope. "Fuddsteen98" argues that "naysayers are getting carried away with doom and gloom." He says if the company's fundamentals remain intact, "this stock price debacle will pass." The best hope, some say on the message board, is a takeover, which could mean new management and a higher stock price. Several writers note that the value of Lockheed Martin property in Sunnyvale, Calif., and Orlando, Fla., alone should make the company attractive. "Maybe Martha Stuart can buy us out," suggests "choochoo 614." By Stan Crock in Washington
EDITED BY DOUGLAS HARBRECHT
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