NEW YORK, Jan. 9 -- Corning Inc. said it expects to see signs of a business recovery in the second half of the year. Corning shares rose 11 percent last week, on optimism that demand might pick up soon after the company said it would start making optical fiber again at two North Carolina plants starting later this month.
On Tuesday, Corning CFO James Flaws told investors at a technology conference in New York that the company expects the recovery in fiber business to be driven by spending by telecommunications carriers and cable operators seeking to upgrade their networks.
Flaws also said Corning was set to record about $650 million in charges in the fourth quarter, the remainder of a $1 billion charge Corning has taken to trim its business for current weaker economic conditions. He also reiterated the company's planned capital spending budget of about $700 million this year, after a budget of nearly $2 billion last year.