Corning Incorporated To Acquire Telecommunications Cable Businesses and Full
Ownership of Optical
Waveguides Australia, Pty Ltd From BICC, plc
Acquisition will extend Corning's access to worldwide telecommunications markets -
particularly in Europe
-- Separately, Corning raises guidance to investors for first quarter 1999 in view of
increased demand for high
data rate fiber --
Corning, New York, March 1, 1999 -- Corning Incorporated (NYSE:GLW) today
announced that it will acquire BICC's
telecommunications cable businesses and the 50 percent equity interest in Optical
Waveguides Australia, Pty Ltd (OWA), it
does not already own for approximately $133 million. The telecommunications cable
businesses produce optical and
metallic telecommunications cable and provide network installation services. OWA
manufactures and sells optical fiber.
Upon completion of the transaction, BICC's telecommunications businesses in Australia,
Germany, Spain and the United
Kingdom will become wholly owned by Corning Incorporated.
Corning said that the acquisition of BICC's telecommunications cable businesses,
together with the recently acquired full
ownership of Optical Fibres, will give it a strong international platform from which it can
continue to meet the needs of its
current cable customers. At the same time, it will position the company to capitalize on
new product and business
opportunities in the worldwide telecommunications marketplace, particularly in Europe.
Corning said that it sees the potential for robust near-term growth in the European
telecom market. “We anticipate strong
European demand for optical fiber, cable and photonics in the coming years as a result
of deregulation and increased
network traffic,” said Wendell Weeks, executive vice president, Corning
Opto-Electronics. “These are the same drivers that
influenced the rapid deployment of optical networks in North America, and there is
similar momentum in Europe.”
In addition, Corning said that in view of current increased demand for its high data rate
fiber, LEAF®, it was raising its
guidance to investors with respect to the first quarter of 1999. Corning now expects an
increase of approximately 20 – 25
percent in its earnings for the first quarter of 1999, compared to its first quarter earnings
in 1998. “While we would caution
investors that it is premature to factor this current surge in market demand into an
increase in the earnings outlook for the full
year 1999,” concluded Roger G. Ackerman, Corning's chairman and chief executive
officer, “we are very pleased with the
reception our new LEAF® optical fiber is receiving for leading, long distance
telecommunications networks.”
BICC, the international engineering group, was a pioneer in optical cabling in Europe
and Asia. The businesses included in
this transaction had 1998 sales approaching $400 million and have a number of strong
long-term relationships with key
network customers in these regions.
Established in 1851, Corning Incorporated creates leading-edge technologies for the
fastest-growing markets of the world's
economy.
Corning manufactures optical fiber, cable and photonic components for the
telecommunications industry; and
high-performance displays and components for television and other
communications-related industries. The company also
uses advanced materials to manufacture products for scientific, semiconductor and
environmental markets. Corning's total
revenues in 1998 were $3.5 billion.
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