Tags: corning | profit | earnings | glass

Corning Profit Tops Views on Strong Demand for Gorilla Glass

Wednesday, 24 Apr 2013 09:29 AM

Specialty glass maker Corning Inc.'s first-quarter profit beat analysts' estimates, helped by strong demand for Gorilla Glass used in smartphones and tablets, as the company looks to touch-screen PC notebooks for further growth.

Corning shares traded up 2.8 percent at $13.50 premarket after the strong result.

Rising demand for the scratch-resistant glass prompted the company to forecast a rise of 15 percent to 20 percent in sales at its specialty materials business in the second quarter, from the prior quarter.

The company is betting on selling Gorilla Glass for touch-screen PC notebooks to increase sales further.

"If the market were to move to "touch" in notebook ... that actually would double the size of the market that would be available for Gorilla Glass," Senior Vice President Tony Tripeny told Reuters.

He added that there is a lot of opportunity for Gorilla Glass in non-consumer electronic applications such as automobiles and buildings.

Samsung Electronics Co.'s Galaxy Note products, Nokia's Lumia phones and Motorola's Droid Razr use Gorilla Glass.

Net income rose to $494 million, or 33 cents per share, in the first quarter, from $474 million, or 31 cents per share, a year earlier. Excluding items, Corning earned 30 cents per share.

Analysts on average expected earnings of 24 cents per share on revenue of $1.96 billion, according to Thomson Reuters I/B/E/S.

Revenue at the company, which makes products as diverse as smartphone screens to emission filters, was nearly flat at $1.81 billion.

Higher sales of Gorilla Glass have more than made up for the weakness in Corning's LCD glass business, as consumers already owning a flat-screen television show little appetite to upgrade to the latest models.

Corning saw a slowdown in the telecom business, both in the United States and Europe, and a decline in its environmental technologies business which affected revenue in the first quarter, Tripeny said.

Sales at its telecommunications business fell 7 percent to $470 million, while those at its environmental technologies business fell 13 percent to $228 million.

The company, which competes with Asahi Glass Co. Ltd., raised its quarterly dividend to 10 cents per share from 9 cents, and said it would spend up to $2 billion to buy back shares.

Corning shares, which have risen about 7 percent in the last three months, closed at $13.13 on the New York Stock Exchange on Tuesday.

© 2017 Thomson/Reuters. All rights reserved.

   
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Specialty glass maker Corning's first-quarter profit beat analysts' estimates, helped by strong demand for Gorilla Glass used in smartphones and tablets, as the company looks to touch-screen PC notebooks for further growth.
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2013-29-24
Wednesday, 24 Apr 2013 09:29 AM
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