Corning Inc. could get boost from World Cup soccer

Could soccer be the financial salvation of Corning Inc. this year?That's one of the more unusual theories circulating in the financial community with the approach of the World Cup soccer tournament in June.

Although it barely registers among Americans, the World Cup draws more TV viewers worldwide than any other sporting event.Speculation is that fans will rush to buy big-screen, flat-panel TVs in order to get ready for the 64 World Cup matches that begin in Germany on June 9.

How big is the potential market? The tournament is expected to draw 30 billion (yes, billion) viewers, according to soccer's ruling body, FIFA.

Since Corning Inc. makes more than half the world's supply of flat-panel glass that goes into liquid crystal display televisions, it stands to reason that the company will benefit if the buying frenzy among soccer fans materializes.

There is some precedent for believing that the World Cup will spur television sales. The world's largest maker of liquid crystal display TVs, Japan's Sharp, already saw sales increases from the 2002 World Cup matches in South Korea and Japan.

Research firm iSuppli predicts that sales of liquid crystal display and plasma televisions will jump 31 percent this year to $47 billion. How much of that is attributable to the World Cup matches is not clear.

Stocks of companies such as Corning Inc. and major display makers Samsung Electronics and LG.Philips LCD Co. are expected to benefit if the World Cup impact occurs as predicted.

Optimism about prospects for liquid crystal display television sales this year already caused a New Year rally in Corning Inc. stock this past week. Strong sales of the flat-panel TVs in the first quarter could be more good news for the stock.

Globally, sales of liquid crystal display TVs are expected to increase 39 percent this year, to $33 billion, while plasma TV sales are expected to increase 14 percent to $14 billion, according to iSuppli.

If falling prices for liquid crystal display TVs combine with increased demand by World Cup soccer fans, Corning Inc. will see the benefits both in its earnings and its stock price.

600450 Corning Inc. could get boost from World Cup soccer

See more news about:

Others also read

Owners of Lincoln Glass in Newport, Dan and Elayne Mason, celebrated their 50th anniversary in the business this year. Dan's parents, John and Grace Mason, established Lincoln Glass in 1956 and oversaw day-to-day operations for 20 years.
Potters Industries Inc., an affiliate of PQ Corporation, announced today that, effective February 15, 2007, the price on all Metal Finishing Glass Bead and Ground Glass product shipments will increase up to 3 cents a pound.
Edward A. Shriver Jr., a Pittsburgh architect who works in retail store design, encourages architects and retail owners alike to "think outside the box," light years away from the designs that have dominated American retail architecture in recent decades.
Hoya Corp., Japan's largest optical glass maker, agreed to buy camera maker Pentax Corp. for 90.6 billion yen ($765 million) to add endoscopes and surgical scissors.
Strange specimens of natural glass found in the Egyptian desert are products of a meteorite slamming into Earth between 100,000 and 200,000 years ago, scientists have concluded. reported that Tarnaveni (Romania)-based Gecsat, estimates an approximately 6.4 million-euro turnover for this year, a 16% drop against last year, when the company posted a 7.6 million-euro turnover.

Add new comment