Corning Comes Under Pressure In All Three Divisions

Corning (GLW) could be headed for some near-term troubles. Cowen’s John Anthony Monday morning cautioned that there appear to be issues in the company’s three primary markets: LCD glass, telecommunications and diesel particulate filters for trucks.

In the LCD glass business, he writes, sell-in to manufacturers of flat-screen TVs looks fine, but he contends there are signs of trouble on sell-out: Anthony says several large sellers of LCD TVs “have expressed caution toward current end-demand and the outlook for the holiday season.”

Meanwhile, he says demand in its optical fiber business will be dampened by delays in fiber deployment at several communications service providers. And he says the company’s environmental unit, which sells diesel particulate filters, could be pressured by weak sales of heavy duty trucks.

Anthony trimmed his 2007 EPS estimate to $1.35 a share from $1.36, and repeated his Neutral rating.

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