Publish date:

Corning Trims Telecom Sails

The tech glassmaker says telecom segment sales will be flat to up 5% in the second quarter.

Corning (GLW) - Get Report reaffirmed second-quarter financial targets and said it expects to bring its debt below $2 billion this year.

But shares of the Corning, N.Y., tech glassmaker fell 3% after it warned of weakening demand in its telecom segment. The company said in a Tuesday morning press release that it now sees telecom segment sales sequentially flat to up 5% for the second quarter. The new guidance represents a pullback from the previously expected 5% sequential rise.

Presenting at an investment conference in San Francisco on Tuesday, CEO Wendell Weeks is expected to reiterate guidance for the second quarter, which calls for an 18-cent-a-share profit on sales of about $1.1 billion.

Corning also says it has redeemed about $191 million in convertible debt and expects to reduce its debt load to less than $2 billion by year-end. The company started the year with $2.7 billion in total debt.

TST Recommends

Early Tuesday, Corning slid 44 cents to $14.60.