Corning Announces Management Changes and Realignment for its Environmental Technologies Segment
29 Julho 2009 - 9:50AM
Business Wire
Corning Incorporated (NYSE:GLW) today announced its plan to
consolidate its Environmental Technologies segment into a leaner
and more efficient organization, and align the business to a
smaller global automotive market and North American trucking
industry. The reorganization will consolidate the management
structure of two divisional operations into one integrated business
unit. The streamlined organization will reduce costs, increase
manufacturing efficiencies, and enable Corning to better meet the
innovation needs of customers.
“The near-term outlook for growth in the emissions-control
products markets is much different than we thought even a year ago,
so we must adjust our organization to reflect these new business
dynamics,” explained Peter F. Volanakis, president and chief
operating officer. “The pace of regulation is also driving the need
for constant product innovation, so we are increasing our agility
to respond with new products that solve our customers’
emissions-control needs," he added.
Volanakis noted that the global auto industry is currently
building 20 percent fewer light-duty vehicles (automobiles) than it
did in 2007. In the U.S., the drop over the same time period is 40
percent. The heavy-duty market (trucks and buses) has been impacted
at similar rates, with the recession severely contracting
construction, delivery of goods, and other freight-hauling
activities that create opportunities for Corning’s diesel filters
and substrates.
“We now believe that our near-term Environmental Technologies
revenue opportunity is 20 percent to 30 percent lower than we had
planned when we built the organization,” said Volanakis. “So we
must realign the organization to scale our costs
appropriately.”
Volanakis announced that the new organization will be led by
Thomas R. Hinman, senior vice president and general manager,
Environmental Technologies. Reporting to Hinman in the new
streamlined management team will be:
- Andrew M. Filson, commercial
business director, leading global sales and marketing for all
environmental products;
- Willard A. Cutler, technology
director, responsible for all Environmental Technologies
development and innovation programs;
- Will Schirmer, engineering
director, responsible for institutionalizing best-practice
manufacturing and engineering processes;
- Deborah A. Mays, division human
resource manager;
- Joseph Monastra, division vice
president and manufacturing manager;
- James N. Nagel, division vice
president, Commercial Technology and Strategy; and
- Gary L. Wallace, division
controller.
“We remain confident in the market for our emissions-control
products and in Corning’s ongoing market and technology leadership.
In particular, diesel remains an attractive growth opportunity for
Corning,” said Hinman. “However, we don’t expect to see a return to
more normal automotive or truck vehicle production levels until at
least 2011 or 2012. In the meantime, we are realigning our business
to be able to take advantage of the market growth when it
returns.”
Over the next several weeks, the new management team will
identify and implement organizational efficiencies to reduce layers
of management; improve Corning’s commercial delivery effectiveness,
manufacturing operations and technology delivery; and eliminate
redundancies in the organization. Their goal is to reduce fixed
costs by approximately 20 percent, including headcount reductions
in Environmental Technologies and supporting corporate technology
groups. Corning expects to be able to communicate the details of
the new organization and the cost-reduction program in
September.
Additional Management Changes
Corning also announced new leadership assignments in several
other business and staff units:
- In Corning Specialty Materials,
Curt Weinstein has been named vice president and general manager,
Advanced Optics; Mark S. Giroux has been elected senior vice
president, Photovoltaics and Touch programs; and John P. Bayne has
been appointed director, Integrated Touch Full-Sheet program;
- In Corning Life Sciences, Mark
A. Beck has been elected senior vice president; Thomas Appelt has
been named vice president and general manager, Corning Life
Sciences Base Business; John McGirr has been appointed director of
operations; and Lydia A. Kenton has been named director, worldwide
sales;
- In Corning Cable Systems EMEA,
Gilbert C. Chorosz will become managing director following the
retirement of Malcolm D. Barnett in October;
- In Procurement and
Transportation, Mills Kenan has been elected vice president in
anticipation of the retirement of Senior Vice President Tom Blumer
in October; and
- In Strategy and Corporate
Development, John Sharkey has been named division vice president,
Corporate Development.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning’s financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions; conditions in the financial and credit
markets; currency fluctuations; tax rates; product demand
and industry capacity; competition; reliance on a concentrated
customer base; manufacturing efficiencies; cost reductions;
availability of critical components and materials; new product
commercialization; pricing fluctuations and changes
in the mix of sales between premium and non-premium
products; new plant start-up or restructuring costs;
possible disruption in commercial activities due to terrorist
activity, armed conflict, political instability or major health
concerns; adequacy of insurance; equity company activities;
acquisition and divestiture activities; the level of excess or
obsolete inventory; the rate of technology change; the ability to
enforce patents; product and components performance issues; stock
price fluctuations; and adverse litigation or regulatory
developments. These and other risk factors
are detailed in Corning’s filings with the Securities and
Exchange Commission. Forward-looking statements speak only as
of the day that they are made, and Corning undertakes no obligation
to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 150 years of
materials science and process engineering knowledge, Corning
creates and makes keystone components that enable high-technology
systems for consumer electronics, mobile emissions control,
telecommunications and life sciences. Our products include glass
substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug discovery;
and other advanced optics and specialty glass solutions for a
number of industries including semiconductor, aerospace, defense,
astronomy and metrology.
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