Corning (News - Alert) Incorporated, a provider of specialty glass and ceramics, recently said that it plans to cut costs in order to support profit in a weakening economy. Unfortunately, these cost cuts include job cuts, but the company said the planned amount it small.
Corning is just one in a slew of manufacturers lately looking to turn the economic tide and slowing global growth. Particularly, the company's telecommunications and environmental technologies divisions have experienced slowed global growth lately, while sales of its popular Gorilla glass — used in a number of popular devices, including top Android (News - Alert) smartphones such as the Samsung Galaxy SIII — have been stronger than anticipated.
However, while sales in the division that includes Gorilla glass increased by 21 percent, price declines for LCD glass brought down the display technologies division, where sales dropped six percent.
"The weakening economy is affecting sales in many of our businesses, with several not achieving the growth expectations we set for the year," said Corning Inc. CFO James Flaws.
The company released its financial results for the third quarter of 2012 recently, which state that net income dropped by 36 percent to $521 million, down from $811 million the same time last year, while revenue fell two percent to just over $2 billion. Despite all this, the company's profit and revenue managed to top Wall Street expectations.
However, Corning said it expects its numbers to get worse in the year to come, hence the reason why it is aiming to cut costs. The majority of savings are expected to come from scaling back project spending, capital expenditures and, of course, job cuts. The company has yet to decide where exactly job cuts will be, but with operations in the U.S., Asia, Europe, Latin America and the Middle East, there are plenty of potential areas that may receive trimming.
On Wednesday, Corning's share prices fell sharply by 9.4 percent, or $1.26, closing at $12.15 that day.