Corning Profit Triples
CORNING, N.Y., April 29, 2008 -- A growing global appetite for LCD televisions helped propel specialty glass maker Corning Inc. to a first-quarter profit of $1.09 billion, or 64 cents a share --three times its net earnings one year ago.
"This was a tremendously strong quarter for Corning. Display glass demand remains robust and we continue to operate our LCD glass substrate facilities at full capacity," said Corning Chairman and CEO Wendell P. Weeks.
The company said sales for the quarter were $1.62 billion, up 24 percent over the first quarter last year, driven largely by the 58 percent increase in sales in Corning's Display Technologies segment, which makes the glass for LCD TV screens and laptop computers. The segment's first-quarter sales were $829 million, a seven percent increase over last quarter. Glass volume increased two percent over last quarter and 50 percent year over year.
"Given the strength of LCD TV in the first quarter and our outlook for the remainder of the year, we now expect the global LCD glass market to grow at the upper end of the 25 percent to 30 percent range that we provided earlier this year," Weeks said.
Strong optical fiber volume and higher fiber-to-the-premises sales in the Telecommunications segment were offset primarily by the slow start of several customer projects which it expects to now start in the second quarter, Corning said. Telecommunications sales for the first quarter were $421 million, a four percent decline from one year ago. The company expects telecom sales to increase more than 10 percent in the second quarter.
Sales for the Environmental Technologies segment were up nearly 10 percent over last year, while sales in the Specialty Materials segment were about even with 2007 and the Life Sciences segment posted a seven percent sales increase.
Looking ahead to the second quarter, Corning said it expects sales to reach as high as $1.75 billion, an increase of more than 20 percent over the same time period last year. LCD glass volume is epected to increase by six to nine percent over the first quarter.
"Global demand for LCD televisions and laptop computers remains strong going into the second quarter. We continue to closely monitor the US retail market, but we have not seen any indication that the US slowdown is impacting our LCD glass business," said Corning Vice Chairman and CFO James P. Flaws.
For more information, visit: www.corning.com
- A noncrystalline, inorganic mixture of various metallic oxides fused by heating with glassifiers such as silica, or boric or phosphoric oxides. Common window or bottle glass is a mixture of soda, lime and sand, melted and cast, rolled or blown to shape. Most glasses are transparent in the visible spectrum and up to about 2.5 µm in the infrared, but some are opaque such as natural obsidian; these are, nevertheless, useful as mirror blanks. Traces of some elements such as cobalt, copper and...
- optical fiber
- A thin filament of drawn or extruded glass or plastic having a central core and a cladding of lower index material to promote total internal reflection (TIR). It may be used singly to transmit pulsed optical signals (communications fiber) or in bundles to transmit light or images.
- The technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and...
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