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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: JHP who wrote (21473)	8/30/2001 7:33:38 AM
From: John Carragher	Read Replies (2) \| Respond to of 24042

Corning Predicts Fiber-Optic Slowdown, Plans to Lay Off 1,000 More Employees By DENNIS K. BERMAN Staff Reporter of THE WALL STREET JOURNAL Corning Inc., saying it is experiencing a "sudden slowdown" in orders for its fiber-optic cable and outlining layoff plans, now expects annual growth of its fiber business to be "significantly less" than the 15% it predicted just one month ago. It expects fiber orders in the second half of 2001 will be lower than the 2000 second half, as well. To compensate for the lower demand, the company, based in Corning, N.Y., said it was laying off 1,000 employees and idling plants in Wilmington, and Concord, N.C., during a short Labor Day shutdown. Since the beginning of the year, Corning has laid off about 8,000 employees, or 20% of its world-wide work force of 41,000. The announcement runs counter to executives' moods at the end of July, when Corning reported better-than-expected earnings. While the company was clearly suffering under the telecom slowdown, the executives then boasted of the company's resiliency compared with other industry players. On a conference call Wednesday, executives said they're now seeing surprise order cutbacks from major telecommunications carriers, who were once consistently large spenders. Fiber-optic cable is the line that carriers use to transmit data as pulses of light. "Over the past couple weeks, they clearly are changing their plans for build-outs and what they require of us," said Chief Executive John Loose. Mr. Loose said the company continues to see solid demand from China, which contributed significantly to the company's sales last quarter. But he added that the economic downturn could start affecting Corning's nonfiber businesses, which include components for liquid-crystal displays used in computer monitors and materials for pollution-control technology. The company has declined to issue any financial guidance for the rest of the year. In 4 p.m. New York Stock Exchange composite trading Wednesday, Corning shares were at $14.60, off 79 cents, or 5.1%.