Corning Incorporated’s Q2 2012 profit fell by 39% as a result of the fragile economy in Europe and China.
The company blamed weak consumer demand for its television screen glass for the fall in profit
Net income fell to $462 million from $755 million, a year earlier, the Corning, New York-based company said.
Wendell Weeks, chairman and CEO said: "We are concerned about the continuing economic challenges in Europe and China’s decelerating GDP growth. We have seen signs that the unsettled global economy impacted some of our businesses in the past quarter.”
He added: “We are alert to the fact that the economic woes may grow, and consumers may reduce their spending, which could impact our customers. If we see further weakness, we will respond with appropriate actions.”
However, the company predicted Q3 glass volume would grow slowly, driven by demand for tablet computers and larger TV sizes.
Its Specialty Materials segment sales were $296 million, a 3% sequential and 5% year-over-year improvement.
The increase was driven by Gorilla Glass sales in the handheld and information technology device markets.
