("Corning 3Q Profit Falls 16%; Results Beat," published at 7:22
a.m. EDT, misstated the revenue figure. A corrected story
follows.)
Corning Inc.'s (GLW) third-quarter profit fell a
less-than-expected 16% as the company posted record earnings from
its joint ventures while it saw strong sales of liquid crystal
displays.
Demand for LCD televisions is likely to remain "robust" through
the fourth quarter because of holiday retail deals, said the
company, whose primary business is making fiber-optic cable and
glass used in LCDs.
And looking further ahead, Corning said worldide sales of LCD
TVs and notebook computers in 2010 could each jump nearly 20%,
which might result in a 15% jump in the worldwide glass market.
"Retail sales for LCD televisions remained strong throughout the
third quarter, and we believe this will continue into the fourth
quarter, which is typically the heaviest retail buying period,"
said Chairman and Chief Executive Wendell P. Weeks. "This demand
has allowed the global LCD supply chain to maintain appropriate
inventory levels." In September, Weeks said customer demand still
exceeded the firm's ability to supply.
The company earlier this month said it was mulling setting up an
advanced glass manufacturing facility on China's mainland as its
major customers, including Sharp Co. (6502.TO) and LG Display Co.
(LPL) are setting up there to tap strong demand for flat-panel
TVs.
Corning reported earnings of $643 million, or 41 cents a share,
down from $768 million, or 49 cents, a year earlier. Excluding
items such as restructuring impacts and a prior-year gain, earnings
dropped to 42 cents from 46 cents.
Revenue dropped 4.9% to $1.48 billion.
Analysts had most recently forecast earnings of 39 cents on
$1.43 billion in revenue, according to Thomson Reuters.
Gross margin fell to 40.5% from 47.2%.
Corning's display technologies segment saw sales drop 2.4% and
earnings fall 5.5% from a year earlier. Its telecommunications
segment-- the company's second-biggest--saw sales fall 9.2% and
profit decrease 16%.
Equity earnings--which include results from Dow Corning and
Samsung Corning Precision--rose 6.9% to a record $418 million.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;