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To: Spekulatius who wrote (45714)	11/29/2011 9:37:41 PM
From: E_K_S	Respond to of 78552

UPDATE 1-Corning slashes outlook in glass glut, shares drop * Corning cuts outlook as TV demand sputters * Plans to mothball capacity * Major customer warns will not honor contract (Adds comments, details from statement) Nov 29 (Reuters) - Corning Inc slashed its fourth-quarter profit outlook and warned that a major South Korean client does not plan to honor its contracts as the supply of LCD glass outpaces demand, triggering an 11 percent share price plunge. Corning, which is struggling to cope with a glut of display glass as television sales sputter, now expects consolidated-equity earnings to dive 30 percent quarter-on-quarter, versus a 5 percent decline anticipated previously. The U.S. company has tried alongside joint-venture partner Samsung Electronics Co Ltd to take back market share in Korea by cutting prices. But the unidentified customer informed them recently it would not honor its obligations, meaning their joint venture would miss volume targets there this quarter. Corning and Samsung now intend to mothball capacity worldwide, but executives said the production capabilities should be restarted further down the road as demand comes back. Corning will take a one-time charge of $25 million to $50 million related to capacity shutdowns in Korea. Ticonderoga Securities analyst Brian White said Corning was too slow to cut production capacity in the face of dwindling demand. "We felt Corning was simply kicking the can down the road and ultimately would need to cut back capacity," White said in a note to clients. "The can became too heavy for Corning to kick down the road any further." The U.S. company did not name the Korean customer, saying only that the Asian company did "not expect to honor the contract for the remainder of the quarter." "This has never happened before," senior vice president and corporate controller Tony Tripeny told attendees at the Credit Suisse Technology Conference on Tuesday. "We will work over the next few weeks and the rest of this year to see what we can do about it." In its statement, Corning also said it was reducing its forecast on Gorilla Glass sales used in tablets and smartphones. It now saw a 25 percent sequential decline in sales this quarter, versus a pre

To: Spekulatius who wrote (45714)	11/29/2011 9:58:57 PM
From: Sergio H	2 Recommendations Read Replies (1) \| Respond to of 78552

LG Chem is due to begin production in early 2012 and Corning has been aware of it. Here's some a press release from two years ago, after LG bought Schott's glass making technology. <LG Chem broke ground for its new LCD glass substrate production plant in Paju, where LG Display’s G7 and larger LCD fabs are located. LG Chem plans to build seven production lines for LCD glass in Paju. Production is expected to begin in early 2012. > displayblog.com And here is a more recent press release confirming LG is up to date on its plans. <LG Chemicals division is set to start manufacturing of its own glass substrates for LCD TV panels from the first half of next year at its huge LCD Display complex in Paju, S Korea, pictured above. whathifi.com