("Corning 4Q Profit Rises 41% As Demand Improves," published at
7:51 a.m. EST, misstated prior-year adjusted earnings. The correct
version follows.)
Corning Inc.'s (GLW) fourth-quarter profit rose 41% as demand
improved and the company recouped $324 million related to claims
from 2009 earthquake that disrupted some operations in Asia.
Adjusted earnings missed analysts' expectations, though revenue
topped estimates.
The maker of glass used in LCD screens on TVs, computer monitors
and other electronics has enjoyed soaring profit in recent quarters
as demand has risen. But demand slowed in the third quarter, with
the company cutting its outlook for glass volume as panel makers
pulled back production to deal with excess inventory.
The company said in November it expected demand in the
world-wide glass market to be flat to down slightly in the fourth
quarter. Glass pricing declining in the mid-single digits as
expected.
The company's scratch-resistant Gorilla Glass, used in
smartphone and tablet computer screens, is positioned as the next
growth driver.
Corning posted a profit of $1.04 billion, or 66 cents a share,
up from $740 million, or 47 cents a share, a year earlier.
Excluding the gain and other items, earnings rose to 46 cents from
44 cents. Revenue increased 15% to $1.77 billion.
Analysts polled by Thomson Reuters most recently earnings of 47
cents on $1.61 billion in revenue.
Gross margin widened to 43.5% from 42.2%.
Display technology sales, its largest segment on that basis,
improved 5% as volume rose 10%.
Sales at its smaller specialty materials soared 79% from a year
earlier on strong sales of its Gorilla glass and strong performance
in advanced optics. Its environmental technology sales rose 28%.
Telecommunications sales increased 9% amid a milder than expected
seasonal downturn.
Shares closed Monday at $19.64 and were inactive premarket.
-By Tess Stynes and Lee Roberts, Dow Jones Newswires;
212-416-2481; tess.stynes@dowjones.com