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17 Jun 2002
As the downturn hits telecoms firms hard, Corning and JDS Uniphase cut costs and predict decline.
US-based Corning's third quarter sales were down 21% from last year's USD 1.9 billion and now stand at USD 1.5 billion. Its share price has plunged by 74% and manufacturing at fiber-optics plants has been suspended.
Blaming the losses on reduced demand in the telecoms sector and the September 11th terrorist events, Corning chief executive John Loose said: "Corning has suffered a series of body blows this year and this is the toughest situation we have been through for a very long time."
Photonics operations at Henrietta, New York will now close in the fourth quarter and Corning may also axe fiber manufacturing at North Wales, UK. Job losses this year now total 12 000.
Sales at North America's JDS Uniphase, have also plummeted. First quarter revenue were down 58% year-on-year from USD 787 million to USD 329 million. The company expects sales to drop by a further 10 to 15 % in the second quarter.
With quarterly losses totalling USD 1.2 billion and 17 sites already closed, JDS Uniphase's chief executive Jozef Straus said: "Our industry continues to be affected by declining carrier spending and a weak economic environment."
He believes however that the company's "global realignment program" will drive the company towards future growth.
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