Corning to Meet with Investors; Reaffirms Second-Quarter Guidance; Lower LCD Volume, Increased Telecommunications Sales Expecte
22 Maio 2006 - 8:31AM
Business Wire
Corning Incorporated (NYSE:GLW) executives will speak with
financial analysts and investors at two separate conferences this
week. They will reaffirm the company's previously announced
second-quarter guidance, before special items, and review the
company's three major growth businesses. Corning Senior Vice
President - Finance, Katherine A. Asbeck will address investors at
the Lehman Brothers Worldwide Wireless, Wireline and Media
Conference in New York today, May 22. Wendell P. Weeks, president
and chief executive officer, will present at the 34th Annual JP
Morgan Technology Conference in San Francisco on May 24. "We remain
comfortable with our previously announced second-quarter guidance
of $1.29 billion to $1.33 billion in sales and earnings per share
(EPS) in the range of $0.24 to $0.26 before special items," Asbeck
will tell analysts today. This EPS estimate is a non-GAAP financial
measure and excludes any possible special items. This and all
non-GAAP financial measures are reconciled on the company's
investor relations Web site and in an attachment to this news
release. Regarding specific segment guidance for the second
quarter, Corning executives will state that the company now expects
sequential liquid crystal display (LCD) glass volume for the
Display Technologies segment, including Samsung Corning Precision
Glass Co., Ltd., to be flat to down 5 percent, compared to the
previous guidance of flat to up 5 percent. The company will note
that there is no change to its previously disclosed guidance on
glass pricing. Also, if the recent weakening in the U.S. dollar
continues, it will have a favorable impact on the company's Display
Technologies segment results. Corning now expects sequential
Telecommunications segment sales to be up 15 percent to 20 percent,
an increase from the previous guidance of up 10 percent to 15
percent for the quarter. The company will state that the
anticipated increase in sequential telecommunications sales in the
second quarter will be driven by higher-than-expected demand from
U.S. and European carriers for the company's fiber and cable and
hardware and equipment products. "The change in our display segment
volume guidance is the result of a reduction in orders from some of
our customers, which we believe was caused by the previously
disclosed panel inventory build-up, particularly for desktop
monitors, which began near the end of last quarter. We expect panel
inventory levels, as measured in days of inventory, to peak in the
second quarter. We believe the level of inventory will decline in
the third quarter of this year, following a pattern very similar to
that of last year. In fact, for those who remember the substantial
panel inventory build in 2004, the level of inventory in the
channel today is well below those levels," Asbeck will tell
investors. Weeks will reiterate this in his remarks. "The important
news here is that the end market trends for LCD remain favorable.
We still anticipate the LCD glass market volume to grow between 40
percent and 50 percent for the year and that Corning will grow
faster than the market. For the first half of this year, we expect
our volume growth to be around 70 percent in comparison to last
year," Asbeck will say. "We expect LCD TV penetration for the year
to average 19 percent and, based on our revised end market data, we
have raised our forecast of total LCD televisions shipped into the
retail market to 41 million for the year, up from our previous
expectation of 38 million," she will tell investors. Weeks will
reiterate this segment forecast later in the week at his
presentation. In addition, the company announced that the glass
melting tanks impacted by the significant lightning strike at its
LCD plant in Shizuoka will be back on line at the beginning of
June. As a result, there have been no material interruptions of
glass supply to customers. As previously announced, the repair and
other costs incurred as a result of the power outage will impact
Corning's second-quarter earnings by about $0.01 per share. This
impact is included in Corning's earnings per share guidance of
$0.24 to $0.26 per share, before special items. Corning's
presentations to investors at these two conferences will be
available via webcast by accessing the investor relations events
calendar on Corning's Web site at
www.corning.com/investor_relations. Presentation of Information in
this News Release Non-GAAP financial measures are not in accordance
with, or an alternative to, GAAP. Corning's non-GAAP net income and
EPS measure excludes restructuring, impairment and other charges
and adjustments to prior estimates for such charges. Additionally,
the company's non-GAAP measure excludes adjustments to asbestos
settlement reserves required by movements in Corning's common stock
price, gains and losses arising from debt retirements, charges
resulting from the impairment of equity or cost method investments,
or adjustments to deferred tax assets, and gains or losses
recognized in equity earnings from restructuring, impairment or
other charges or credits taken by equity method companies.
Corning's free cash flow financial measures are also non-GAAP
measures. The company believes presenting non-GAAP free cash flow,
net income and EPS measures are helpful to analyze financial
performance without the impact of unusual items that may obscure
trends in the company's underlying performance. These non-GAAP
measures are reconciled on the company's Web site at
www.corning.com/investor_relations and accompany this news release.
About Corning Incorporated Corning Incorporated (www.corning.com)
is a diversified technology company that concentrates its efforts
on high-impact growth opportunities. Corning combines its expertise
in specialty glass, ceramic materials, polymers and the
manipulation of the properties of light, with strong process and
manufacturing capabilities to develop, engineer and commercialize
significant innovative products for the telecommunications, flat
panel display, environmental, semiconductor, and life sciences
industries. Forward-Looking and Cautionary Statements This press
release contains forward-looking statements that involve a variety
of business risks and other uncertainties that could cause actual
results to differ materially. These risks and uncertainties include
the possibility of changes or fluctuations in global economic and
political conditions; tariffs, import duties and currency
fluctuations; product demand and industry capacity; competitive
products and pricing; manufacturing efficiencies; cost reductions;
availability and costs of critical components and materials; new
product development and commercialization; order activity and
demand from major customers; capital spending by larger customers
in the liquid crystal display industry and other businesses;
changes in the mix of sales between premium and non-premium
products; facility expansions and new plant start-up costs;
possible disruption in commercial activities due to terrorist
activity, armed conflict, political instability or major health
concerns; ability to obtain financing and capital on commercially
reasonable terms; adequacy and availability of insurance; capital
resource and cash flow activities; capital spending; equity company
activities; interest costs; acquisition and divestiture activities;
the level of excess or obsolete inventory; the rate of technology
change; the ability to enforce patents; product and components
performance issues; changes in key personnel; stock price
fluctuations; and adverse litigation or regulatory developments.
These and other risk factors are identified in Corning's filings
with the Securities and Exchange Commission. Forward-looking
statements speak only as of the day that they are made, and Corning
undertakes no obligation to update them in light of new information
or future events. -0- *T CORNING INCORPORATED AND SUBSIDIARY
COMPANIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP
FINANCIAL MEASURE Three Months Ended June 30, 2006 (Unaudited;
amounts in millions, except per share amounts)
----------------------------------------------------------------------
Corning's earnings per share (EPS) excluding special items for the
second quarter of 2006 is a non-GAAP financial measure within the
meaning of Regulation G of the Securities and Exchange Commission.
Non-GAAP financial measures are not in accordance with, or an
alternative to, generally accepted accounting principles (GAAP).
The company believes presenting non-GAAP EPS is helpful to analyze
financial performance without the impact of unusual items that may
obscure trends in the company's underlying performance. A detailed
reconciliation is provided below outlining the differences between
this non-GAAP measure and the directly related GAAP measure.
----------------------------------------------------------------------
Range ------------------- Guidance: EPS excluding special items
$0.24 $0.26 Special items: Restructuring, impairment and other
(charges) and credits (a) Asbestos settlement (b) ------ ------
Earnings per share
----------------------------------------------------------------------
This schedule will be updated as additional announcements occur.
----------------------------------------------------------------------
(a) From time to time, Corning may need to make adjustments to
estimates used in the determination of prior year restructuring and
impairment charges, which could result in a gain or loss during the
quarter. (b) As part of Corning's asbestos settlement arrangement
to be incorporated into the Pittsburgh Corning Corporation
reorganization plan, Corning will contribute, when the
reorganization plan becomes effective, 25 million shares of Corning
common stock to a trust. The common stock will be contributed to
the trust, after the plan has been approved by the asbestos
claimants and bankruptcy court. The portion of the asbestos
liability to be settled in common stock requires adjustment each
quarter based upon movements in Corning's common stock price prior
to contribution of the shares to the trust. In the second quarter
of 2006, Corning will record a charge or credit for the change in
its common stock price as of June 30, 2006 compared to $26.92, the
common stock price at March 31, 2006. In addition, Corning will
record an adjustment to the asbestos liability to reflect the
change in fair value of any of the other components of the proposed
asbestos settlement. *T Please note that the company may pursue
other financing, restructuring and divestiture activities at any
time in the future, and that the potential impact of these events
is not included within Corning's first quarter 2006 guidance. This
schedule contains forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward
looking statements are based on current expectations and involve
certain risks and uncertainties. Actual results may differ from
those projected in the forward looking statements. Additional
information concerning factors that could cause actual results to
materially differ from those in the forward looking statements is
contained in the Securities and Exchange Commission filings of this
Company.
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