Houghton Named Corning's CEO

A member of the University’s highest governing board was named the CEO of Corning, Inc., the world’s leading producer of optical fiber, by the company’s board of directors Monday.

Harvard Corporation Fellow James R. Houghton ’58 will replace John W. Loose on April 25. Loose served as Corning’s CEO for only 16 months and an article in Tuesday’s Wall Street Journal described his departure as “unexpected.”

This will not be Houghton’s first time leading the company. Houghton stepped down from a 13-year tenure as Corning’s CEO in 1996, but has chaired its board of directors since last June.

Houghton is also slated to replace Robert G. Stone Jr. ’45 as the Harvard Corporation’s senior fellow after Stone retires in June. The senior fellow position is akin to the chair of a company’s board of directors.

University spokesperson Joe Wrinn said Houghton’s new role at Corning would “absolutely not” affect his commitment to the Corporation.

And Stone agrees that Houghton will successfully balance the two positions.

“I don’t think he’ll let it detract from the attention he gives to Harvard,” Stone said yesterday.

But after the appointment of Robert E. Rubin ’60 to the Corporation earlier this month, Stone said in an interview that it would be difficult to balance life as a CEO with the responsibilities of the Harvard Corporation.

“I don’t think you can be a CEO running a company every day and do it,” he said. “I couldn’t have done it unless I’d decided to liquidate our company.”

The change in Corning’s leadership comes in the wake of a dramatic drop in the company’s earnings, the latest in a series of financial woes.

In a preliminary report to shareholders Monday, the company said first quarter sales were about $900 million, down sharply from $1.92 billion in the first quarter of 2001 and below the company’s sales projections.

“I am absolutely committed to restoring this company to profitability in 2003,” Houghton said in a press release.

On Monday, Corning warned of imminent cost-cutting measures, including plant closures and 4,000 job cuts.

Corning Chief Financial Officer James Flaws said the restructuring efforts would be “difficult” for the company.

Houghton became CEO of Corning in 1983, succeeding his older brother, Rep. Amory Houghton Jr. ’50 (R-N.Y.). Houghton’s great-great-grandfather founded the company and seven Houghtons have served as its chief executive.

When James Houghton first became CEO at Corning, nearly 70 percent of Corning’s revenues came from cyclical, slow-growth businesses.

Houghton sold off units in laboratory glassware, electronics and light bulbs and spent $500 million on high-profit ventures in laboratory services and fiber optics.

—Material from the Associated Press was used in this story.

—Staff writer Catherine E. Shoichet can be reached at shoichet@fas.harvard.edu.