Corning expects lower LCD sales for 3Q

Specialty glass maker Corning Inc. said Thursday that its third-quarter sales volumes of liquid-crystal-display glass will be lower than originally expected, because of weak customer demand.

James Flaws, 

"Utilization rates remain low as the industry anticipates softer retail demand in the second half of this year," Flaws said in comments released by the company ahead of his address. "This is somewhat contrary to how retail demand has been acting to date."

Worldwide retail demand for LCD TVs rose 18 percent through June and sales still appear to be strong, so it's possible that supply chain inventories will be much lower heading into the fourth quarter, Corning said.

But Corning now expects volume at its wholly owned business to be flat sequentially, down from its previous expectation of an increase in the mid-to upper-single digit range.

And volume at Samsung Corning Precision Materials Co. Ltd. is expected to be down 30 percent sequentially, due to the lower-than-expected LCD panel maker utilization rates and some market share loss. Originally, Corning said it expected a decrease in the mid-single digit range at Samsung Corning.