Corning CEO Expects to Benefit from Conservative Approach to Customer Agreements
Dow Jones10-27 21:26
0925 ET - Corning's recent customer agreements tend to include cash payments upfront, a model that CEO Wendell Weeks says should help the company fare better than when the telecom bubble burst. Corning uses the upfront cash to fund the capacity it's putting in place, and then it returns the cash to customers with the profit stream it creates when it actually delivers the volume to them, he says. "What we're deliberately doing is positioning ourselves quite conservatively from a financial profile standpoint," he says on CNBC. That approach contrasts to decades ago, when Corning came under pressure as some of its biggest customers went bankrupt, sapping demand for its vast amounts of fiber.
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