Profit in the October-December period will be at the low end or below a previous projection of 20 cents to 28 cents a share, the company said. Sales are expected to fall below previous guidance of $1.1 billion to $1.2 billion.

The world's largest maker of liquid-crystal-display glass also said it was withdrawing previously disclosed guidance for 2009.

On average, analysts surveyed by Thomson Reuters expected earnings of 25 cents a share and sales of $1.32 billion in the fourth quarter. They projected a $1.24 profit on sales of $5.66 billion next year.

As the global economy worsens, consumers are reining in purchases of LCD-TVs, especially larger-screen models, and industry analysts expect the drop in sales will be more severe in 2009.

DisplaySearch, a market research firm based in Austin, Texas, expects to pare back its prediction of 30.2 million LCD-TV shipments in North America this year by just "a million or 2 million units," analyst Paul Gagnon said. "Most of the impact won't be felt until next year.

"Currently we're projecting about 130 million shipments worldwide" in 2009, up from around 102 million in 2008, Gagnon said. "That might come down, in the best case scenarios, by maybe 10 million units. But it could get worse, especially if the recovery takes a lot longer to materialize."

Corning, a 157-year-old company based in western New York, commands more than 50 percent of the global market for its high-profit LCD glass.

"Their relatively low-competition position atop the supply chain makes them better off than other players," Gagnon said. "The panel makers are really feeling the brunt of it."

After plunging as much as 18 percent to a five-year low, Corning's stock rallied in afternoon trading to finish at $8.39, down 64 cents, on the New York Stock Exchange.

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