Corning Cuts Sales Forecast as Demand Slows -- Update
September 16 2019 - 8:45PM
Dow Jones News
By Kimberly Chin
Specialty glassmaker Corning Inc. lowered its sales and volume
expectations for materials found in TV sets and
optical-communication cables, citing weaker demand.
The Corning, N.Y., company said that several major
telecommunications companies have reduced capital spending on cable
deployments and the installation of fiber-optic networks at
homes.
Corning now expects optical-communications sales to decrease by
a low-teen percentage in the fiscal third quarter. It previously
expected a low- to mid-single-digit percentage increase. For fiscal
2019, optical-communications sales are now projected to fall 3% to
5%, compared with a low- to mid-single digit percentage
increase.
Carrier and enterprise-network sales are projected to decrease
year-over-year in the second half of the year, the company
said.
Shares of Corning fell 9.3% to $27.25 in after-hours trading
Monday.
Corning also said it was dialing back its display-technology
volume forecast for the third quarter, projecting a decline in the
high-single digit percentage. Set manufacturers are purchasing
panels "more conservatively" due to macroeconomic uncertainty,
Corning said, driving panel makers to cut down on utilization.
"Management is taking actions to lower cost to align with
revised sales expectations," including adjusting its capacity in
its display and optical-communications segments and reducing
operating expenses and the pacing of capital projects, the company
said.
The company expects the supply-chain adjustments to be temporary
and demand to pick up among panel makers next year.
(END) Dow Jones Newswires
September 16, 2019 20:30 ET (00:30 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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