DOW JONES NEWSWIRES
Corning Inc. (GLW) expects liquid-crystal-display glass output
to be better than its reduced expectations as the disruption caused
by an earthquake near a Japanese plant was less serious than
anticipated.
The company said third-quarter output would fall less than 5%
from the previous quarter, compared with its August estimate of a
5% to 10% drop. The company also expects glass pricing to be flat
in the fourth quarter compared with the current quarter.
In the current quarter, the company will book about $22 million
in charges related to the restart and sales will be hurt by about
$25 million. However, the sales impact is partly offset by
restarting some output in Taiwan.
Chairman and Chief Executive Wendell P. Weeks, in comments
released ahead of a presentation before analysts, said the Shizuoka
plant's restart is on track. Operations were suspended in August
following a strong quake. The plant is restarting capacity this
month with more planned in October.
Weeks added that customer demand still exceeds the firm's
ability to supply and that LCD television demand "continues to be
robust."
Corning shares were down 4 cents premarket at $15.77. They're up
two-thirds in 2009 but still down 2.5% from a year earlier.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com