Corning Cuts Jobs, Earnings Outlook

Corning Inc. said it will expand its restructuring efforts, including additional job cuts and temporary plant shutdowns, resulting in charges of as much as $1 billion in the second half of 2001 due to deteriorating conditions across all of its businesses.

The Corning, N.Y.-based company said the actions also will mean it will miss third-quarter consensus analysts’ estimates for earnings of 12 cents.

Corning said it now expects operating profit to be in the range of 2 cents to 6 cents a share. It also expects to report a fourth-quarter pro forma net loss, contrasted with analyst expectations of a profit of 9 cents a share.

The company said the job cuts may reach 12,000 employees, including about 8,000 previously announced, by the end of the year. Corning said it expects its fiber shipments for the year to be down 10%.

Shares of Corning closed up 13 cents at $9 on the New York Stock Exchange before the announcement.