Corning Inc.'s (GLW) first-quarter earnings fell 8.3%, beating
analysts' estimates, as the liquid-crystal display maker's margins
declined, though sales increased more than analysts had
expected.
Shares rose 4.9% to $21.60 in premarket trading on the beat. The
stock as of Tuesday's close had risen 2.4% in the past year.
Corning, well-known for making LCD glass, had enjoyed surging
profit in recent quarters because of rising demand. LCDs are widely
used in smartphones, tablets and TVs. The company earlier this
month said it plans to maintain production levels at two of its
LCD-glass facilities in Japan.
Corning reported a profit of $748 million, or 47 cents a share,
down from $816 million, or 52 cents, a year earlier. Revenue jumped
24% to $1.92 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 44 cents on $1.87 billion in revenue.
Gross margin fell to 45.4% from 47.1%.
Display technology sales, the company's biggest revenue driver,
rose 1%. So-called "other" income declined 58% to $27 million.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com