Oct. 30, 2002 – Corning, NY – Corning Inc., announced a restructuring initiative in conjunction with its 3Q02 financial results. The company expects these restructuring actions to result in a reduction of approximately 2,200 employees.
The company is set to permanently closing its optical fiber manufacturing facility in Noble Park, Victoria, Australia, and has proposed the closing of its Neustadt bei Coburg, Germany, optical fiber plant.
The closures are proposed to be completed by early 2003.
Corning will also mothball its optical fiber manufacturing facility in Concord, NC, and transfer certain capabilities to its Wilmington, NC, facility. Corning believes that the Concord facility can be returned to productive capacity within six to nine months of a decision to reopen.
The company has proposed reductions in capacity and employment at Corning’s cabling, hardware and equipment locations worldwide to reduce costs. And, Corning is planning the permanent closure of its photonic technologies thin-film manufacturing facility in Marlborough, MA, by the end of 2002.
Of the total restructuring charge of $550 to $650 million, approximately 25% is expected to be paid in cash.
“The challenge confronting the telecommunications industry is the most serious we have faced,” said James Flaws, vice chairman and CFO. “Telecom carriers continue to indicate that they will further reduce investments in 2003. As a result, we are taking decisive action to re-size our businesses to reflect today’s economic realities. These actions will contribute to our plan to achieve profitability in 2003. We are also evaluating other restructuring actions and we may announce further charges later in the current quarter.”
Also, as part of its plan to restore profitability, the company announced that it would continue its merit freeze for salaried employees into 2003 and also make certain benefit reductions including changes to its investment plan and retiree medical plan.