Corning Raises 2Q LCD Volume Expectations in CEO Presentation at Sanford Bernstein Strategic Decisions Conference
28 Maio 2009 - 9:30AM
Business Wire
Stronger-than-expected demand for LCD glass has caused Corning
Incorporated (NYSE:GLW) to raise its expectation for second-quarter
sequential volume growth. Wendell P. Weeks, chairman and chief
executive officer, will provide details in support of this improved
view at the Sanford Bernstein Strategic Decisions Conference in New
York today.
�Our recent checks indicate the LCD supply chain is in full
recovery mode,� Weeks will say. �The LCD supply chain continues to
replenish; glass supply and demand is very tight right now, much
stronger than we anticipated. This has led to an imbalance in glass
supply and demand that will likely last through the end of the
third quarter. As a result, we are raising our second-quarter glass
volume expectations.�
The company now expects glass volume at its wholly owned
business to grow by more than 75% sequentially in the second
quarter, compared to its original guidance of more than 50%. At
Samsung Corning Precision Glass Co., Ltd. (SCP), the company�s
equity venture, second-quarter volume is now expected to be up more
than 40% sequentially, versus previous expectations of 25%.
However, the company is taking a conservative approach to
relighting idled glass capacity.
Weeks will also speak to the health of the overall supply chain
and significant increases seen in panel maker utilization rates,
especially at non-Korean makers. �They need to replenish very lean
inventory levels and meet demand from set assemblers,� Weeks will
say. �As a result, we have been working down our glass inventory
much faster than anticipated, began relighting tanks earlier than
planned, and are taking additional steps to shorten delivery lead
times.�
On the retail front, independent consumer market research firm
NPD group reports that U.S. LCD TV sales in April increased 9% over
2008. Similarly, unit sales increased 77% in China and 18% in
Japan, as indicated by independent research firms CMM and BCN,
respectively. As a reminder, the company is forecasting worldwide
LCD TV unit sales to increase by 18% for the full year.
The company expects second-quarter glass price declines to be in
line with its previous guidance. Given current market conditions,
the company now believes that its sequential price declines in the
third quarter will be very minor and consistent with customer
agreements.
In addressing Corning�s telecommunications businesses, Weeks
will speak to robust optical fiber and cable demand from China as
it builds its 3G network and a new supply agreement with Portugal
Telecom utilizing the ClearCurve� solution. However, private
network demand in the U.S. continues to be weak. The company�s
environmental business was hard-hit by the recession, but may see a
slight upturn in the second quarter, driven primarily by auto sales
growth in Europe and China. Worldwide production levels may have
bottomed, but the company remains cautious and will be taking
additional restructuring actions to resize its environmental
business for a smaller auto market as needed.
Weeks will close with remarks on the company�s newest revenue
opportunities:
- Gorilla� glass � this thin,
tough cover glass for portable displays and touch screen
applications has become widely utilized by eight major brands in 10
different models with at least 10 more models in development. To
date, the company has delivered about 10 million square feet of
Gorilla glass.
- Green Lasers � Corning has
established collaborations with several industry leaders, including
Microvision, to provide modules for micro laser-based projectors
for handheld devices. The company anticipates production later this
year.
- Thin-film Photovoltaic glass �
while this is an early-stage program, it is moving quickly. The
company anticipates recording its first revenues next year with the
potential of total glass demand reaching one billion square feet by
2020.
Corning's comments to investors at the Sanford Bernstein
Strategic Decisions Conference will be available�by accessing the
IR events calendar on Corning's Web site at
www.corning.com/investor_relations.
Forward-Looking and Cautionary Statements
This press release contains �forward-looking statements� (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning�s financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions;�conditions in the�financial and credit
markets;�currency fluctuations;�tax rates; product demand and
industry capacity; competition; reliance on a concentrated customer
base; manufacturing efficiencies; cost reductions; availability of
critical components and materials; new product commercialization;
pricing fluctuations�and�changes in the mix of sales between
premium and non-premium products; new plant start-up�or
restructuring�costs; possible disruption in commercial activities
due to terrorist activity, armed conflict, political instability or
major health concerns; adequacy of insurance; equity company
activities; 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; stock price fluctuations; and adverse litigation or
regulatory developments.�These and other�risk factors
are�detailed�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.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 150 years of
materials science and process engineering knowledge, Corning
creates and makes keystone components that enable high-technology
systems for consumer electronics, mobile emissions control,
telecommunications and life sciences. Our products include glass
substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug discovery;
and other advanced optics and specialty glass solutions for a
number of industries including semiconductor, aerospace, defense,
astronomy and metrology.
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