is shutting down its TV glass business and cutting 1,000 jobs.
The company said Tuesday it would take a first-half charge of $140 million to $170 million to close the State College, Pa., plant of its Corning Asahi Video joint venture. But Corning said that excluding the effects of the charge, it remains on track to hit first-quarter financial targets and to return to the black later this year.
Corning shares, which have risen more than 400% off last fall's lows as the company has imposed sharp cost cuts, rose 17 cents Tuesday morning, to $5.97. The stock remains more than 90% off its bull market high.
"This business has been facing a declining customer base and significantly increased imports for several years and it is now losing money," CEO James Houghton said. "In our relentless drive to restore profitability to Corning, we can not carry money losing mature businesses."
In the fourth quarter of last year, Corning took a pretax charge of $140 million to impair tangible assets in the TV business.
Corning reaffirmed that it expects to post a first-quarter operating loss of $10 million to $50 million, or 1 to 4 cents a share, on revenue of $700 million to $730 million. The loss excludes the effect of an asbestos litigation settlement covering the company's Pittsburgh Corning venture, gains from debt repurchases and charges from restructuring and impairment actions.