Corning 3Q Net Rises On Higher Display Glass Sales

Date: 27 October 2011
NEW YORK (Dow Jones)--Corning Inc.'s (GLW) third-quarter earnings rose 3.3% as sales at its key liquid-crystal-display glass unit surged on higher volume.

The world's biggest supplier of glass for LCD screens said it offset "moderate" price declines with higher deliveries at its display unit, despite television panel makers reducing the amount of time they hold onto inventory. Meanwhile, all its other business segments, which make products such as fiber-optic cables and scratch-resistant screens for smartphones, saw growth during the quarter.

Shares climbed 5.3% to $14.44 in recent premarket trading as the results topped analysts' expectations. Through the close, the stock has fallen 29% so far this year, worse than the market at large.

"We had strength in all of our businesses," Chief Executive Jim Flaws said in an interview. "There were two things that also helped us versus analysts. One was forex. The other was, we did reduce our bonus compensation accruals for the year because we're not going to hit our original [financial performance] targets."

In the display business, which accounts for the bulk of the company's profits, "we had a rebound in Japan because our customers there had taken some shutdowns in [the second quarter]," Chief Financial Officer Jim Flaws said in an interview. "We had good volume in Taiwan and China, and sales were also helped by the exchange rate."

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