A leading manufacturer of LCD glass explained yesterday (27th January) that its customers slashed their inventories last year as retail sales of items using the technology stalled.

Corning Inc. revealed in its financial results for the fourth quarter of 2008 that revenue in the display technology sector fell by 50 per cent, while sales were down 18 per cent in the telecommunications segment.

Furthermore, the company has expressed its belief that combined display volume will fall by 20 to 25 per cent as inventories continue to be cut and near-double-digit percentage price reductions occur.

Chairman and Chief Executive Wendell P Weeks said: "We experienced a significant momentum shift in many of our core businesses in the fourth quarter as the recession took hold."

However, the results showed that retail sales of LCD televisions were better than expected last month, a trend which the Corning expects to continue during 2009.

The company also expressed its belief that demand for the sets will increase in the second quarter as customers' inventories are now at levels last seen in 2007.

Source:

Corning Announces Fourth-Quarter Results (27/01/09)
http://www.corning.com/news_center/news_releases/2009/2009012701.aspx