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To: Kenneth E. Phillipps who wrote (21089)	12/5/2002 10:27:29 PM
From: elmatador	Read Replies (1) \| Respond to of 21876

"no significant growth in the telecommunications sector until 2004." Corning takes $825m restructuring charge By Jonathan Moules in New York Published: December 5 2002 14:24 \| Last Updated: December 5 2002 14:57 Corning, the lossmaking fiber optic manufacturer, on Thursday announced impairment charges of up to $825m for goodwill and assets and said it did not see significant growth in the telecommunications sector until 2004. Including these latest charges, which will hit fourth-quarter results, Corning’s total impairment and restructuring charges for 2002 have reached $2bn as it focuses on cost cutting and paring back capacity in the face of falling demand. The bursting of the telecoms bubble pushed Corning and other communications equipment suppliers into losses. Thousands of jobs have been cut this year by these companies as they attempt to break even in the face of lower capital spending by telecoms carriers. Corning, which takes its name from its hometown in New York state, said on Thursday it would take a $400m charge reflecting impaired goodwill in its telecoms operations. An additional $400m-$425m of impairment charges would be taken for tangible and intangible assets in Corning’s television glass and photonic technologies operations. “Our outlook does not anticipate any significant growth in the telecommunications segment until late 2004,“ said James Flaws, Corning’s vice-chairman and chief financial officer. Corning has reported six straight quarters of losses. The ongoing job cuts and plant closures, which will reduce headcount to 23,500 people, are expected to return Corning to profit in 2003, according to the company. The latest charges were determined after Corning completed its annual assessment of goodwill, required under US accounting standards. The charges will be recorded as part of fourth-quarter results, due to be announced at the end of January. Analysts’ consensus estimate is for a fourth-quarter loss of 9 cents per share on revenues of $777m, according to Thomson Financial First Call. At the end of the third quarter, Corning's balance sheet included $2.1bn in goodwill, of which about $1.9bn was related to its telecoms businesses. In October, Corning announced a $550m-$650m restructuring charge to cover 2,200 redundancies and plant closures. Shares of Corning were down 7 per cent at $3.92 at midday in New York on Thursday.