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Corning stock falls after weak outlook

Post Time:Dec 01,2011Classify:Company NewsView:265

 

Shares of Corning Inc. took a hit Tuesday after the specialty glass maker gave a disappointing outlook for the current quarter and said it expects its worldwide glass production capacity to fall by 25 percent by the end of the quarter.

THE SPARK: Corning said it is lowering its glass capacity to match lower demand. It now expects demand for its Gorilla Glass to fall by 25 percent sequentially, down from its earlier prediction of a 15 percent decline.

While the company had expected to regain lost market share in South Korea in the fourth quarter, this did not happen. It said it lowered its prices because of a glass over-supply in the industry, thinking this would prompt the return of a large customer in that country.

"However, following initial positive reactions, including higher shipments in October and early November, this customer recently informed us that they do not expect to honor the contract for the remainder of the quarter," said Tony Tripeny, senior vice president and corporate controller, in a statement.

Corning did not name its South Korea customer.

THE BIG PICTURE: Corning is the world´s largest maker of liquid-crystal-display glass with more than 60 percent of the global market. Its ultra-strong Gorilla Glass is used in handheld gadgets as well as tablets and high-end TV sets.

SHARE ACTION: Shares of the Corning, N.Y.-based company fell $2.04, or 13.8 percent, to $12.74 in midday trading. The stock has been recovering after sinking to a 52-week low of $11.51 in early October. It peaked for the past year at $23.43 in early February.

 

Source: Corning Inc./cbsnews.comAuthor: shangyi

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