Corning looking to downsize following tough quarter
Smartphone touch screen manufacturer and optical fibre specialist Corning, which counts Apple among its biggest customers, has warned that it could reduce its headcount, blaming the weak economy for it performing short of expectations.
The firm’s net income dropped 36 per cent year on year in 3Q12, from $811m to $521m, and revenue fell two per cent to $2.04bn. Vice chairman and CFO James Flaws attributed the poor performance to the difficult macro-environment and explained that many of Corning’s business are not achieving the growth expectations it set for the year. As a result, it is looking to downsize its operations.
“We believe these economic headwinds will persist next year,” he said. “In order to deliver on our plan to grow earnings, we are likely to implement selected cost reductions in the areas of project spending, capital expenditures, and fixed costs, which may include modest headcount reductions.”
He added that the firm is looking to expand its product offerings and make strategic acquisitions in a bid to improve profits despite the challenges it is facing.