Corning: LCD Demand Crumbling; Guidance Too High

Things keep getting worse for Corning (GLW) , as demand for large-screen LCD televisions sags in the face of a global consumer recession. The LCD glass maker this morning said it is now withdrawing the financial guidance it provided just a few weeks ago for the fourth quarter and for 2009. In a statement, CFO James Flaws said that “Panel makers, particularly those in Taiwan, have continued to reduce the utilization of their factories heading into the second half of this quarter in response to weakened retail demand for LCD televisions and desktop monitors.” He added that demand in the company’s wholly owned display glass business “has dropped more precipitously than we expected just a few weeks ago,” with “additional, but less severe, reductions in demand at Samsung Corning Precision Glass,” its joint venture in South Korea. Flaws said the company now expects Q4 sales to be below its previous guidance range of $1.1 billion to $1.2 billion, with ... (link)