16 May 2003 Tokyo and Hickory, NC Lightwave -- Following the announcement of a record annual loss, Furukawa Electric Co. said it plans to cut several hundred jobs at OFS Brightwave, its U.S.-based fiber operations that it owns jointly with CommScope Inc.
After posting a loss of $979 million for the fiscal year that ended last March, the company expects smaller losses in the coming fiscal year, with the second half of the year returning a profit as the telecommunications market begins to rebound and cost-cutting measures take hold. Furukawa says that demand remains flat in its North American operations; however, losses there in the coming fiscal year are expected to be half what they were in the previous 12 months.
Reacting to the Furukawa announcement, CommScope says that it expects to incur charges from its minority stake in OFS Brightwave. The company projects ongoing price pressures and weak global demand for optical fiber products at least through the rest of this year. An estimation of the amount of the charges awaits more specific details of Furukawa's reorganization plans.