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Corning Warns of Job Losses on Weaker Telecoms Product Sales
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Corning, the glass manufacturer that supplies Gorilla Glass to smartphone manufacturers has warned that it may need to made job cuts as it faces a possible slow down in its industry.
The company announced a slight reduction in its third-quarter revenues of US$2.04 billion, and a 36 percent fall in profits of US$521 million.
Telecommunications segment sales were $523 million, declining 6% sequentially and 7% year over year. The decline was driven by lower sales in North America and Europe, partially offset by growth in China.
North American sales were impacted by certain project delays and a winding down of U.S. stimulus spending on optical cable in support of telecommunications infrastructure projects. European sales were impacted by a softening in market demand.
James B. Flaws, vice chairman and chief financial officer said. "The weakening economy is affecting sales in many of our businesses, with several not achieving the growth expectations we set for the year. We believe these economic headwinds will persist next year. In order to deliver on our plan to grow earnings, we are likely to implement selected cost reductions in the areas of project spending, capital expenditures, and fixed costs, which may include modest headcount reductions,"
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