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Bad for the Glass

Post Time:Sep 05,2008Classify:Company NewsView:466

Shareholders of Corning Inc. are discovering what Robert Loggia’s Feech La Manna character on the Sopranos found out very quickly: too many liquid-crystal display televisions isn’t good for business.

The maker of LCD glass and fiber-optic equipment reduced third-quarter earnings forecasts, due to lower-than-expected shipments of LCD glass, which resulted from an oversupply in the big TVs. Brian White, analyst at Collins Stewart, commented last week that flat-panel makers in Taiwan were unlikely to build inventory for the September quarter, and were experiencing sluggish demand.

That’s going to bite into Corning’s bottom line, which reduced its expectation for margins to 47% from 50%, and now expects sales of $1.58 billion to $1.62 billion, down from $1.65 billion to $1.72 billion. Analysts at Davenport & Co. say the company’s glass-panel business could feel the impact for at least two quarters, and perhaps three to four.

The stock is down 9% on the Big Board, where it was the fifth most-actively traded issue.

Source: Corning Inc.Author: shangyi

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