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To: Elwood P. Dowd who wrote (92069)	7/9/2001 4:51:08 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

More: Corning to take $5.1 billion charge Fiber optic firm cuts 1,000 jobs as demand falters By Chris Kraeuter, CBS.MarketWatch.com Last Update: 4:48 PM ET July 9, 2001 CORNING, N.Y. (CBS.MW) - Corning said late Monday it will cut 1,000 jobs, eliminate common stock dividend payments, miss its second-half financial targets and take a $5.1 billion charge this quarter as demand for some of its fiber optic equipment plunges. Corning will close three manufacturing facilities and cut 1,000 jobs in its Photonic Technologies unit due to "severely reduced market demand" for its photonic components and modules. The cost of this plan, estimated between $300 million and $400 million, will be included in third-quarter results. Corning shares (GLW: news, msgs, alerts) closed down 3 cents at $15.10 ahead of the report. For the second quarter, which ended in June, Corning will take a pre-tax charge of $5.1 billion to impair goodwill and other intangible assets related to the purchases of Pirelli's optical components business and its NetOptix buy, as well as write-offs for inventory. As for financial results excluding charges, Corning said its second-quarter earnings are "slightly ahead" of the consensus expectation of 18 cents a share. Actual results will be reported on July 25. For the second half of the year, though, Corning said it will miss current expectations due to a reduced outlook for its Photonic unit and uncertainty for the entire telecom industry. The company will update investors on the status of businesses on July 25, but it will not provide specific financial targets.