GLW Corning Inc

By Kimberly Chin 

Specialty glassmaker Corning Inc. lowered its sales and volume expectations for materials found in TV sets and optical-communication cables, citing weaker demand.

The Corning, N.Y., company said that several major telecommunications companies have reduced capital spending on cable deployments and the installation of fiber-optic networks at homes.

Corning now expects optical-communications sales to decrease by a low-teen percentage in the fiscal third quarter. It previously expected a low- to mid-single-digit percentage increase. For fiscal 2019, optical-communications sales are now projected to fall 3% to 5%, compared with a low- to mid-single digit percentage increase.

Carrier and enterprise-network sales are projected to decrease year-over-year in the second half of the year, the company said.

Shares of Corning fell 9.3% to $27.25 in after-hours trading Monday.

Corning also said it was dialing back its display-technology volume forecast for the third quarter, projecting a decline in the high-single digit percentage. Set manufacturers are purchasing panels "more conservatively" due to macroeconomic uncertainty, Corning said, driving panel makers to cut down on utilization.

"Management is taking actions to lower cost to align with revised sales expectations," including adjusting its capacity in its display and optical-communications segments and reducing operating expenses and the pacing of capital projects, the company said.

The company expects the supply-chain adjustments to be temporary and demand to pick up among panel makers next year.

(END) Dow Jones Newswires

September 16, 2019 20:30 ET (00:30 GMT)

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