Weeks will say, "We believe we have four significant long-term growth opportunities at Corning, spanning a diverse set of markets including display, diesel, telecommunications and solar energy."
Corning's Senior Vice President - Finance, Katherine A. Asbeck, will also review the company's expectations from these growth areas at the Lehman Brothers Worldwide Wireless and Wireline Conference in New York City tomorrow, June 1. In addition to reiterating second-quarter guidance, Weeks and Asbeck will address key factors driving the company's growth opportunities.
"Market trends in the display industry remain very positive," Weeks will say. As previously stated, the company expects the liquid crystal display (LCD) glass market to grow 35 to 40 percent this year, adding at least 400 million square feet of glass to the total demand. Weeks will add, "Corning expects next year's end market demand to continue to grow, with at least 400 million square feet expected to be added in 2008 as well."
The company's current display industry analysis shows that panel maker's inventories appear to be at normal seasonal levels, showing a significant improvement from last year. Based on this analysis, the company also believes that current panel capacity will be adequate for 2007 and 2008 demand, but panel makers can be expected to announce capacity expansions to meet demand for 2009 and beyond.
"The diesel opportunity is here, and now we have to deliver," Weeks will say as he reviews the company's second long-term growth area. Adding to the company's previously disclosed expectations for this business, Weeks will say, "We anticipate that our diesel sales could reach between $500 and $600 million by 2010. At that sales level, this business should have excellent gross margins and, should be a significant contributor to the company's bottom line."
The positive momentum recently experienced in the telecommunications industry will provide Corning with continued opportunity for growth. Corning's Telecommunications segment is expected to benefit from the ongoing need for additional bandwidth capabilities, particularly in the access market.
"A fourth significant growth opportunity for Corning is Hemlock Semiconductor Corporation, the world's leading producer of polysilicon," Weeks will conclude. Owned by Dow Corning Corporation, a Corning equity company, Hemlock's growth is increasingly driven by rapid development of the solar energy market. "Growth in excess of 35 percent per year is expected to continue in the solar energy market, and we are very excited about Hemlock's leading capabilities in meeting this demand." Hemlock plans to increase its output by 90 percent over the next four years.