CommScope expects charges from Furukawa restructuring
CommScope Inc. said it expects to incur charges from its minority stake in OFS BrightWave LLC, an optical fiber joint venture shared with Japan's Furukawa Electric Co. Ltd.
CommScope's announcement comes in the wake of Furukawa's decision to conduct a major review of its global optical fiber and fiber optic cable operations, which may include some OFS BrightWave facilities in which CommScope has a minority investment. According to wire reports, Furakawa plans to cut hundreds of jobs at its U.S.-based optical fiber division.
"CommScope expects to provide estimates of non-cash charges related to OFS BrightWave once plans are finalized in the coming months," said CommScope Chairman and CEO Frank Drendel. CommScope has an 18.4 percent stake in OFS BrightWave.
Drendel also reiterated that he expects ongoing pricing pressures and weak demand for optical fiber products to last at least through 2003.