Corning Inc., citing an increasingly thrifty customer base, lowered its operating-earnings guidance for this year, the second time in one month it has cut estimates.
The US maker of optical fibre and…
Corning Inc., citing an increasingly thrifty customer base, lowered its operating-earnings guidance for this year, the second time in one month it has cut estimates. The US maker of optical fibre and components says its operating earnings will now fall between US$ 1.1 billion and US$ 1.2 billion, or US$ 1.20 and US$ 1.30 per share, excluding one-time charges, compared with a previous estimated range of US$ 1.33 to US$ 1.36 billion, or US$ 1.40 to US$ 1.43 per share. Corning said revenue will be in the range of US$ 8.2 to US$ 8.5 billion, down from its previously stated forecast of US$ 9 billion “There is a significant softness in the telecom area,” said James Flaws, Corning“s chief financial officer. “It“s a frustrating time for us and a number of other companies.” Corning said revenue at its photonics technologies unit will grow 20% to 25% in 2001, compared with a 50% growth rate that it had forecast just last month. Its fibre-cable business remains at full capacity, and is expected to grow 20% this year, in line with Corning“s overall forecasts for world-wide fibre growth. Company officials noted, however, that growth for its “premium fibre” – strands of glass designed to move data at superfast speeds – will stay at last year“s record levels. The company had anticipated improved growth. “We have reduced visibility about when the market is going to bounce back,” Mr. Flaws said. To keep its earnings steady, officials said Corning is contemplating layoffs in addition to the 825 manufacturing jobs it cut last month. A spokeswoman said cuts, if they were to happen, would likely come from Corning“s photonic division rather than from its fibre-cable business.