Corning Sales, Profit Top Analysts' Estimates on Demand for Flat Displays
July 28 (Bloomberg) -- James Flaws, chief financial officer of Corning Inc., discusses the company's second-quarter profit reported today. The world's biggest maker of glass for flat-panel televisions said profit rose to 58 cents a share, beating analysts' estimates, while sales climbed 23 percent to $1.71 billion. Flaws talks with Jon Erlichman on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Corning Inc., the world’s biggest maker of glass for flat-panel televisions, reported second- quarter profit and sales that topped analysts’ estimates as customers resumed buying TVs.
Profit rose to 58 cents a share, the Corning, New York- based company said today in a statement. Analysts predicted 53 cents on average, according to a Bloomberg survey. Sales climbed 23 percent to $1.71 billion.
Demand for liquid-crystal displays, 45 percent of annual revenue, will be at the high end of Corning’s forecast for the year, the company said last week. Glass demand, measured in square feet, will be unchanged this quarter compared with a year earlier as customers make “minor” inventory reductions, Senior Vice President Tony Tripeny said today in a telephone interview.
“TV sales are pretty decent -- still growing quarter on quarter,” said Vijay Rakesh, an analyst at Sterne Agee & Leach in Chicago who recommends buying the stock. “The momentum’s slowing, but they’re still growing.”
Corning fell 34 cents to $17.66 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 8.5 percent this year.
Net income climbed to $913 million from $611 million, or 39 cents, a year earlier. Analysts predicted sales of $1.65 billion on average.
Sales of liquid-crystal displays climbed 24 percent to $834 million.
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net
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