Corning warns of hit from UAW strike as core sales forecast disappoints By Reuters

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<span>© Reuters. FILE PHOTO: A screen displays the logo for Corning Inc. at the New York Stock Exchange (NYSE) in New York, U.S., November 18, 2019. REUTERS/Brendan McDermid/File Photo</span><br />
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<p>(Reuters) &#8211; Corning (NYSE:) on Tuesday forecast fourth-quarter core sales below market expectations and flagged a likely hit from the ongoing strike against the Detroit Three automakers, sending the shares of the specialty glass maker down nearly 3%.</p>
<p>The company expects core sales to be about $3.25 billion for the three months to December. Analysts were expecting $3.56 billion, according to LSEG data.</p>
<p>&#8220;Labor issues in the automotive industry could impact our automotive business more in the fourth quarter than it did in the third quarter,&#8221; CFO Edward Schlesinger said in an earnings call.</p>
<p>Corning supplies windscreens and emission control systems to the automotive industry and the strike comes as it grapples with slowing demand for its fiber cables from the telecom sector. </p>
<p>The optical communications unit, one of its main revenue generators, saw net sales fall by nearly a third as carriers worked through inventory. </p>
<p>&#8220;Our markets continue to reflect demand below trend lines,&#8221; CEO Wendell Weeks said, adding demand is expected to bounce back in the second half of 2024.</p>
<p>Core earnings forecast for the fourth quarter of between 37 cents and 42 cents per share was also below estimates of 50 cents.</p>
<p>The specialty materials business, which includes the Gorilla Glass used in smartphones made by Samsung (KS:) and Apple (NASDAQ:), was a bright spot. Revenue climbed about 8%, largely due to the launch of the iPhone 15. </p>
<p>The Environmental Technologies segment, which produces filters for emission control systems, posted a 6% increase in net sales as demand from China helped offset softness in heavy-duty markets in North America.</p>
<p>Core sales fell by about 6% to $3.46 billion in the third quarter, missing estimates of $3.50 billion. Adjusted profit of 45 cents per share also fell short of estimate of 47 cents.</p>
<p>Meanwhile, core gross margin improved by 90 basis points to 37%, as Corning aggressively cut costs and hiked prices by about 20% over the past quarters. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/cornings-shares-fall-as-the-apple-supplier-forecasts-q4-core-sales-below-estimates-3206991">Source link </a></p><p>The post <a href="https://forextraderhub.com/corning-warns-of-hit-from-uaw-strike-as-core-sales-forecast-disappoints-by-reuters.html">Corning warns of hit from UAW strike as core sales forecast disappoints By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>