US glass manufacturer Corning has announced that it is expecting lower earnings due to falling demand of LCD screens which till now has been the prime mover of the company’s profits.

After Corning made the announcement on Wednesday, investor confidence was badly shattered and the impact was felt on its stocks. Share prices in New York fell by 7.8% or $1.56 to close at $17.94.

New York-based Corning is a major manufacturer of the display glass that is used in liquid crystal display screens of televisions and computers. Among other products made by the company are ceramic substrates, filter for cars, glass and plastic components for pharmaceutical purposes as well as optical fiber for telecommunication companies.

In recent years, Corning has been delivering impressive sales figures powered by the fast growing market for LCD TVs in the US. However slower purchase orders by some Asian panel makers have led to a decline in global demand. Earlier in the year, Corning expected the global market for LCD glass to expand by 20% to 30% and accordingly predicted adjusted profits of 48 cents to 51 cents per share on sales of 1.7 billion. However now the company now seems resigned to revise those figures to between 43 cents an 45 cents.