Corning hits bottom in Q1

Fiber-optic cable provider Corning announced today that first quarter results would represent the bottom for its businesses and anticipates a market turnaround this year.

Corning expects to post a loss of 14 cents to 18 cents per share on revenues of $925 million to $950 million but plans to be cash-flow positive late in the year and has negative free cash flow for the whole year.

Demand for its communications equipment, which comprises 70% of Corning’s business, has been significantly reduced due to the downturn in the telecom industry. Last year, Corning cut 12,000 jobs, reduced spending, canceled or delayed expansion plans and idled the majority of its plants at year’s end.

The company expects fiber shipments to increase at least 15% in the first quarter from the previous quarter, even though fiber volume will be down 50% from the same period of the previous year. The growth is being attributed to optical fiber use in metropolitan and access markets, and by lighting previously installed long-haul fibers.

Corning also plans on investing about $550 million in R&D and expects to spend about $500 million in capital spending.

--Amalia D. Parthenios, staff writer