Tags: US | Earns | Corning

Corning Posts Higher Net Income as Sales Climb

Wednesday, 28 Jul 2010 08:14 AM

Corning Inc. posted a sharp increase in its second-quarter profit Wednesday thanks to strong sales of its glass for flat-panel televisions and mobile devices.

The world's biggest maker of liquid-crystal-display glass earned $913 million, or 58 cents per share in the April-June period. This is up 49 percent from a profit of $611 million, or 39 cents per share, a year earlier.

Revenue climbed 23 percent to $1.71 billion from $1.4 billion.

The results surpassed Wall Street's expectations. Analysts polled by Thomson Reuters had expected Corning to earn 52 cents per share on revenue of $1.65 billion.

LCD glass is Corning's biggest business by far, and the company commands nearly two-thirds of the LCD glass market. Chief Financial Officer James B. Flaws said the company sees "substantial growth opportunities" in this segment as LCD television sets start to spread to emerging markets. And Corning expects China to soon become the world's largest market for these TVs.

The company, which also makes ceramic auto-pollution filters and is the world's largest producer of optical fiber and cable, said all its segments did well during the quarter but the latter, its telecommunications business, was a standout. Sales in this unit rose 21 percent sequentially and 1 percent year-over-year to $441 million, boosted in part by new fiber-to-home projects in Canada.

Sales in Corning's environmental technologies unit jumped 39 percent from a year earlier to $184 million.

Strong sales of the ultra-thin, chemically strengthened Gorilla glass used in mobile devices drove sales in Corning's specialty materials segment up 54 percent from a year earlier, to $125 million.

"There is vigorous customer (demand) for Gorilla glass and sales could reach $1 billion by 2011, especially as the product broadens its reach into the television market," Flaws said in a statement.

Corning had total cash, cash equivalents and short-term investments totaling $4.26 billion at the end of the quarter. This is up from $3.58 billion as of the end of last year.

Shares of Rochester, N.Y.-based Corning slid 24 cents to $17.76 in premarket trading.

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Corning Inc. posted a sharp increase in its second-quarter profit Wednesday thanks to strong sales of its glass for flat-panel televisions and mobile devices.The world's biggest maker of liquid-crystal-display glass earned $913 million, or 58 cents per share in the...
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2010-14-28
Wednesday, 28 Jul 2010 08:14 AM
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