UPDATE 1-Corning profit falls, says to cut jobs
Oct 24 (Reuters) - Specialty glass maker Corning Inc reported a lower quarterly profit as sales to consumer electronics, telecommunication and automotive markets fell, and said it plans to cut jobs and reduce costs.
Corning, which makes products as diverse as smartphone screens to emission filters, said it expects a pretax charge of up to $50 million in the fourth quarter on restructuring.
"The weakening economy is affecting sales in many of our businesses, with several not achieving the growth expectations we set for the year," Chief Financial Officer James Flaws said in a statement. "These economic headwinds will persist next year."
Net profit for the company, which supplies LCD to manufacturers such as LG Display Co Ltd and Sony Corp, fell to $521 million, or 35 cents per share, from $811 million, or 51 cents per share, a year earlier.
Revenue fell about 2 percent to $2.04 billion.
Sales in the telecommunications business, which makes optical fiber and cable, and hardware and equipment, fell 7 percent to $523 million due to project delays in the United States and weak demand in Europe.
Corning was also hurt by a winding down of U.S. stimulus spending on optical cable in support of telecommunications infrastructure projects, the company said.
Sales of environmental technologies unit, which makes ceramic substrates and filter products for emissions control, fell 6 percent to $233 million.
Excluding items, the company earned 34 cents per share.
Analysts had expected a profit of 32 cents per share on revenue of $2.02 billion, according to Thomson Reuters I/B/E/S.
Corning shares were down 4 percent at $12.90 premarket on Tuesday.
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