Source Pravda.Ru

Corning Inc Faces Hurdles

      Corning Inc (GLW.N) said the decline in third-quarter glass output may be smaller than expected due to improving demand, but profit margins have been hurt by an earthquake in Japan.

    Corning Incorporated  is an American manufacturer of glass, ceramics and related materials, primarily for industrial and scientific applications.

    Corning, the largest maker of glass for liquid crystal display screens, said it expects volume at its wholly owned business to be down less than 5 percent in the third quarter from the second quarter.

      Since late May the company has been more and more optimistic about glass demand this year due to signs of recovery in corporate spending on technology and robust growth in sales of LCD TVs.

    The supply chain for displays "is expanding in preparation for what we now believe will be a stronger fourth quarter than we previously thought," Chief Executive Wendell Weeks said in comments prepared for an investor conference on Thursday.

     But the company also noted that as a result of an earthquake in Japan last month that forced it to shut down a factory in Shizuoka, its gross margin will be hurt by about 2 percentage points in the third quarter.

    The company expects the rebuild at Shizuoka to result in $22 million in incremental accelerated depreciation charges in the third quarter.

     Weeks said the restart of the Shizuoka plant is on track, with some output resuming this month and more planned in October. He said Corning would ease some of the effect from the disruption by restarting production units in Taiwan earlier than anticipated.

      Corning shares were up 10 cents to $15.91 in early trading on the New York Stock Exchange, according to Reuter's report.

Comments
Sheep disrupt the work of US missile defences in Romania
Sheep disrupt the work of US missile defences in Romania
Russian Guard to see enemies behind walls
Russia starts shipping S-400 air defence systems to China
German experts name Russia's most dangerous weapon
Interview with Andre Vltchek for Farhikhtegan newspaper in Iran
Russian army receives giant modernised nuclear mortars
Russia's new torpedo carrying 100-megaton nuclear warhead nullifies USA's Prompt Global Strike
A Europe without roots now also demolishes churches
US diplomat makes fool of himself in the Netherlands
US diplomat makes fool of himself in the Netherlands
US diplomat makes fool of himself in the Netherlands
Three scenarios of new super sanctions against Russia published
Three scenarios of new super sanctions against Russia published
Three scenarios of new super sanctions against Russia published
Putin's power shakes US Congress
Brigitte Bardot accuses Hollywood actresses of hypocrisy
Russia starts shipping S-400 air defence systems to China
Russia starts shipping S-400 air defence systems to China
A Europe without roots now also demolishes churches
A Europe without roots now also demolishes churches