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Technology Stocks : Corning Incorporated (GLW) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (1398)	7/9/2001 8:49:53 PM
From: Ibexx	Respond to of 2260

From Bloomberg: "3 Plants to Close Corning's latest employee cuts, which will occur at three factories that make components used in fiber-optic equipment, will boost its total job reduction to 5,900 positions, or 15 percent of the workforce, this year. Plants in Benton Township, Pennsylvania; Nashua Park, New Hampshire; and Natick, Massachusetts, will close by the end of the year, the company said in a statement. On a conference call with analysts, Chief Financial Officer James Flaws said Corning's second-quarter earnings, excluding costs and charges, would have exceeded analysts' average estimate. Earnings without certain costs and charges will miss analyst estimates for the second half of this year, the company said. Sales of fiber-optic components fell 30 percent to 35 percent in the second quarter from the first, Flaws said. While the company sold more optical fiber than it expected in the quarter, customers bought less so-called premium fiber, Flaws said. ``Companies have their time in the sun, then go through stormy times,'' said John Rutledge, manager of the Evergreen Technology Fund, which sold its remaining Corning stake earlier this year. ``Corning's in a very stormy environment, which we think will persist for some time. NetOptix, Pirelli Acquisitions Corning took a charge of $4.8 billion to write down goodwill created after it overpaid for last year's acquisitions of NetOptix Corp. and Pirelli SpA's fiber-optic components business. Corning spent $1.6 billion to purchase NetOptix and about $4 billion on the Pirelli's optical parts unit. Companies record goodwill to account for the difference in the price paid for an acquisition and the book value of the acquired business. By writing down goodwill on past purchases, Corning is acknowledging it won't recover its investments. " Ibexx