Corning cuts Q3 glass demand view

Sept 14 (Reuters) - Specialty glass maker Corning Inc (GLW.N) cut its third-quarter glass demand outlook due to an inventory correction in the LCD panel supply chain, but said other business segments are either on track or exceeding expectations.

Corning sees total third-quarter glass volume to be down about 5 percent from the second quarter, a revision from its prior view that glass demand would remain consistent. Total glass volume includes Corning's wholly owned business and Samsung Corning Precision Glass Co Ltd (SCP).

Corning said it has seen downward adjustments in LCD panel utilization rates, mainly by Taiwanese and Japanese manufacturers, and expects glass demand in its wholly owned business will be down about 25 percent sequentially.

The company said it expects SCP unit to be up 5 percent in the third quarter due to continued strong production levels at Korean panel manufacturers.

The company also said continued strength in the Japanese yen-to-U.S. dollar exchange rate will significantly benefit its third-quarter sales and net income.

"Most of the concerns may have been reflected in the stock...investors are recognizing that though cut, the outlook is not too bad," said RBC Capital analyst Mark Sue.

Shares of Corning have fallen nearly 7 percent since late July when the company gave its initial third-quarter outlook. They were trading up about 6 percent at $17.76 midday on the New York Stock Exchange.

For the alerts, please click on [ID:nWNAB5873] (Reporting by Jennifer Robin Raj in Bangalore; Editing by Aradhana Aravindan)