We are relieved that initial reports indicate no Corning employees were injured,” James B.Flaws, vice chairman and chief financial officer, said. “However, our glass-making operations at the facility are currently suspended and we believe they will remain so for some time. We are assessing options to meet customer demand and accelerating the restart of idled glass melting tanks at other facilities. It is clear that glass volume at our wholly owned business will be lower than originally planned for the third quarter. At the present time it does not appear that this outage will have a material impact on our fourth-quarter shipments based on our current view of the market. We will update investors on any significant changes to this outlook.”
“Our adjusted estimate now places sequential volume at our wholly owned business to be down between 5% and 10% in the third quarter, versus our original expectation of flat to up slightly, following a particularly strong second-quarter performance,” Flaws added.
Corning did not provide specific sales guidance for the third quarter, but the company did note that the lower glass volume would have a negative impact on sales by approximately $65 million.
Corning’s other LCD glass manufacturing operations, including those at Samsung Corning Precision Glass Co. Ltd., and its Sakai City plant were not affected by the earthquake.
“While it is easy to get discouraged by events that are out of our control, we are equally encouraged by our July results, which came in stronger than we anticipated. We saw continued growth in our other businesses, including our equity company Dow Corning Corporation, which further strengthened our belief that the impact of the global recession may be moderating,” Flaws concluded.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning’s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed in Corning’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.
Media Relations Contact:
Kelli C. Hopp-Michlosky
(607) 974-1657
hoppkc@corning.com
Investor Relations Contact:
Kenneth C. Sofio
(607) 974-7705
sofiokc@corning.com
Corning Shizuoka Glass Production Disrupted
Date: 12 August 2009
Source: Corning
CORNING, N.Y., August 11, 2009 – Corning Incorporated (NYSE:GLW) today announced that production at its LCD glass manufacturing facility in Shizuoka, Japan was disrupted by the earthquake that occurred in Honshu yesterday.