Corning Slips After Stock Sale

A 50 million-share offering trims the stock price by 5%.
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Corning

(GLW) - Get Report

slipped Tuesday morning after selling some stock to continue its debt-reduction push.

On Monday Corning priced an offering of 50 million shares at $5.43 apiece, raising some $270 million. The company said it would use proceeds from the offering, which came under a previously filed $5 billion universal shelf, to pay down debt. News of the offering sent Corning shares down 23 cents to $5.44 Tuesday morning.

Corning, which makes glass and optical fiber for telecommunications and other industrial uses, has been on the upswing recently under a cost-cutting push led by CEO James Houghton. The company has cut its debt by about $1 billion over the last year, to around $3.7 billion. Its stock has rallied as well; after dropping 99% from their bubble-era peak to $1.10 late last year, Corning shares had more than quintupled as of Monday's close on account of the company's cutbacks in operations, workers and debt.

Investors in the optical-fiber sector will be watching Tuesday evening for the latest earnings report from Corning's main rival,

JDS Uniphase

(JDSU)

.