Corning shares fall amid worry about lower prices for flat-screen glass

Shares of industrial materials maker Corning Inc. fell nearly 5 percent Wednesday amid concern about a projected first-quarter drop in prices for its ultra-thin glass used in flat-screen computers and televisions.

The company, which specializes in fiber-optic and glass products, said late Tuesday it earned $163 million, or 11 cents a share in the October-to-December period, compared with a loss of $29 million, or 2 cents a share, in last year's fourth quarter.

Sales rose 26 percent to $1.033 billion from $820 million a year ago and topped its third-quarter revenues of $1.06 million. The company hasn't recorded $1 billion in sales in successive quarters since being hit hard by the telecommunications industry's slump in 2001.

Excluding one-time restructuring and asbestos litigation charges totaling $14 million, or 1 cent a share, Corning earned $177 million, or 12 cents a share. That matched the consensus forecast among analysts surveyed by Thomson First Call.

Analysts, however, were worried about a projected 5 percent erosion in prices for liquid-crystal-display glass in the first quarter and its effect on the company's overall earnings.

"The leverage in Corning's display business becomes less clear and concern about capacity increases," Lehman Brothers said in an earnings review report Wednesday.

Corning shares fell 56 cents, or 4.9 percent, to close at $10.95 in Wednesday trading on the New York Stock Exchange _ in the lower half of their 52-week range of $9.29 to $13.44.

The company said it expects first quarter earnings of 11 cents to 13 cents a share before extraordinary items on sales of $980 million to $1.03 billion. Analysts were expecting quarterly profits of 12 cents per share on sales of $1.025 billion.

600450 Corning shares fall amid worry about lower prices for flat-screen glass

See more news about:

Others also read

Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment