This article says that some companies out of Taiwan are coming on line to produce GLW type products. I'm no tech head but the word GLUT sucks. I was buying this at 71 thinking it was some big bargain with the company saying they could not produce their product fast enough to meet demand.
Wednesday February 14 3:46 PM ET
Corning Says LCD Concern Led to Earns Range Change
SAN FRANCISCO (Reuters) - Concerns about a possible glut of liquid crystal display (LCD) screens led glass and fiber optics maker Corning Inc. (NYSE:GLW - news) to widen the range of its first-quarter earnings forecast last month, Chairman and Chief Executive John Loose said on Wednesday.
Loose, speaking to investors at a conference, reiterated company forecasts for the first quarter, including pro forma earnings of 28 cents to 31 cents per share, a range that Corning widened on Jan. 24 from between 29 cents and 30 cents.
At the time, Corning said some telecommunications companies might lower first-half orders in the face of tougher capital markets and added that some liquid crystal display customers could adjust inventories of monitors in the first quarter, given the current retail environment.
Loose said on Wednesday that concerns over a rising supply of LCD displays led to the range adjustment.
``Three display makers in Taiwan (news - web sites) came on stream at the same time,'' he said. The long-term trend for LCD growth was still strong, he added, ``but there was a watchout, and that is what drove us to open up the range.''
Telecommunications companies were increasing spending on fiber optic cable even if their overall capital expenditures were under pressure, Loose added.
``We are in the black and white television stage of fiber deployment,'' he told the conference, sponsored by Robertson Stephens. ``There is a long, long way to go.''
Loose said he thinks investors are worried about slower capital spending by companies in the current economic environment, but added that spending on fiber optic infrastructure was still strong.
``If you feel there is a disconnect from what people like Corning are saying...,'' he said, ``(it is because) Corning is in the optical networking space.'' |
