Corning Raises 2nd-quarter Glass Guidance

BEN DOBBIN

ROCHESTER, N.Y. (AP) — Specialty glassmaker Corning Inc. said Thursday it anticipates stronger-than-expected demand in the second quarter for its flat-screen television glass.

The world's largest maker of liquid-crystal-display glass now expects glass volume to grow by more than 50 percent in the April-June period compared with the first quarter. That's up from its previous forecast of a roughly 40 percent increase.

"The LCD supply chain is in full recovery mode," Chief Executive Wendell Weeks said at a business conference in New York City. "Glass supply and demand is very tight right now, much stronger than we anticipated. This has led to an imbalance ... that will likely last through the end of the third quarter."

Corning's shares fell 41 cents, or 2.8 percent, to $14.16 in afternoon trading.

Panel makers slowed their glass purchase orders at the end of 2008 to try to reduce a buildup in inventories as prices fell. In response, Corning took $165 million in first-quarter restructuring charges to pay for eliminating 3,500 jobs, or 13 percent of its payroll of 27,000.