Corning Recharged After Glass-Plant Fix
CORNING, N.Y. (
) --
Corning
(GLW) - Get Report
has bounced back from earthquake damage and now says LCD glass production won't be down as much as previously expected.
The glassmaker had to suspend operation last month at a facility in Japan that was damaged by an earthquake. The disruption will amount to about $25 million less in sales for the third quarter and will trim gross margins by 2%. But Corning says the plant is expected to be restarted this month and that new production in Taiwan helped offset the drop in volume in Japan.
Corning says total LCD glass -- the flat sheets used in TVs and computer monitors -- will be down less than 5% in the third quarter compared to second-quarter levels. Initially, Corning warned that the earthquake's impact would cut volume by as much as 10% sequentially.
Looking ahead to the fourth quarter, Corning chief Wendell Weeks says the LCD glass business will remain steady. "We now anticipate worldwide glass demand in the fourth quarter will be as strong as the third quarter," Weeks said in a press release.
While Corning continues to be optimistic about the LCD business, investors will note that the company has a track record for
by unforeseen order cancellations as big TV panel makers get stuck with unsold inventory.
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Written by Scott Moritz in New York
.
