Corning Inc. told investors in New York Friday that the fiber company expects to be profitable in the third quarter of 2003, despite anticipated weak performance at its telecommunications division.
Corning said it expects to generate Q1 revenues of between $700 million to $730 million, and post a net loss in the range of 1 cent to 4 cents per share.
The company cited four elements that it believes will restore Corning to profitability: stable sales in optical fiber and cable; cost reduction benefits (between $300 million to $330 million at its telecom division alone) from a 2002 restructuring; growth in its Corning Technologies division, led by sales of flat-panel glass for liquid crystal displays; and reduced corporate operating expenses.
“We have not built our plan on a market recovery in optical fiber and cable,” said Corning President and COO Wendell Weeks. “While there is some evidence that these markets are stabilizing, we are anticipating flat year-to-year volume and positive cash flow, before restructuring costs, from these businesses.”
Despite that upward trend, Corning did get some bad news in the courts. Rival company Furukawa Electric Co. reportedly filed a lawsuit Friday against a Corning affiliate, claiming that Corning had infringed on an optical fiber technology patent.
