Bad News: Corning Cutting 3,500 Jobs; Good News: Cheaper TVs

[qi:011] Corning, the company that makes the key component (glass) for LCD and plasma screens, today posted its fourth-quarter 2008 results, which included revenues of $1.1 billion and earnings per share of 13 cents, much lower than what Wall Street was expecting. Telecommunications segment sales — the company makes optical fiber, amongst other things — came in at $405 million, down 18 percent sequentially. For those reasons, Corning says it will cut 3,500 jobs, or 13 percent of its work force, by the end of the year. Blame it on a 35 percent decline in LCD volumes that are likely to fall by another 20-25 percent in the first quarter of 2009. Corning sees a further decline in LCD prices — good news to anyone who has money to spend on a big-screen TV. Now’s the time to negotiate for even further discounts, for every manufacturer is trying to clean out their excess TV inventories.

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