Corning Misses Q4; Weak Q1 Outlook; 3,500 Job Cuts

Corning (GLW) this morning announced that it will cut 3,500 jobs by the end of the year, a 13% staff reduction, in response to weaker global glass demand. For Q4, the company posted sales of $1.1 billion and profits before special items of 13 cents a share; the Street had been looking for $1.16 billion and 20 cents. Combined LCD glass volume including both its wholly owned business and its Samsung Corning joint venture, was down 35% sequentially and 28% year over year. The company’s wholly owned business saw volume drop 50% sequentially and year over year. The JV was down 26% sequentially, but only 4% year over year. Gross margin the quarter was 28%.  Sales overall was down 30% sequentially and year over year. The 3,500 job reductions will include 1,500 salaried employees. Corning is also cutting 1,400 temporary workers. Corning also suspended merit increases for salaried employees. For Q1, the company expects combined display glass volume down 20%-25%, plus a high-single-digit ... (link)