Corning Plans Sharp Cut In ‘09 Cap Ex

Corning (GLW) CFO Jim Flaws says the company plans to slash capital spending in 2009 to $1.1 billion, down 35% from the $1.7 billion the company spent in 2008. In a post- earnings interview this morning with Tech Trader Daily , Flaws said the company will complete its Gen 10 glass facility in Japan, along with a small expansion of diesel capacity planned for 2010, but that it has stopped all expansion in Taiwan. He notes that after spending $700 million on cap ex in Q4, the company expects to spend $800 million in the first two quarters of 2009 combined, and just $300 million in the back half of the year. Clarifying the company’s announcement earlier today on plans to cut 3,500 jobs, Flaws notes that the figure includes 500 jobs that were cut in Q4, but does not include another 1,400 contractor positions Corning is cutting as well. Flaws notes that those positions including post manufacturing-related positions and others who were working on capital projects. Flaws says the LCD TV ... (link)