Corning Inc. (GLW) announced plans to more than double spending
this year as it detailed efforts to grow annual sales to $10
billion by 2014.
The maker of glass used in LCD screens on TVs, computer monitors
and other electronics has enjoyed soaring profit of late as demand
has risen. Growth appeared to pick up late last year after panel
makers had pulled back production earlier in 2010 to deal with
excess inventory. Its scratch-resistant Gorilla Glass, used in
smartphone and tablet computers, is positioned as the next growth
driver.
Friday, it forecast capital spending of $2.4 billion to $2.7
billion this year, compared with about $1 billion in 2010.
The sales goal of $10 billion would compare with the $6.6
billion it reported last year.
Corning expects to benefit from the PC market growing at an
anticipated 16% compound annual rate through 2014 amid a shift to
mobile computing, driven by the rapid growth of tablets. Meanwhile,
it sees liquid-crystal-displays remaining prevalent in TVs and
expects emerging markets and a shortened TV replacement cycle to
drive demand.
It sees growth in its Gorilla Glass segment boosted by demand
for smartphones as well as tablets. The company said its life
sciences segment is poised to double its revenue to $1 billion by
2014 as it broadens its portfolio and pursues acquisitions.
Shares were up 1.3% premarket at $22.87.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com