Corning Updates Third-Quarter Outlook in CEO Presentation at Citi Global Technology Conference
10 Settembre 2009 - 1:00PM
Business Wire
Corning Incorporated (NYSE:GLW) Chairman and Chief Executive
Officer Wendell P. Weeks will provide an update on the company’s
recovery from the recent earthquake in Japan while speaking to
investors at the Citi Global Technology Conference in New York City
today 8:00 a.m. Corning's comments at the conference can be heard
via webcast at www.corning.com/investor_relations.
Addressing the earthquake’s impact on Corning’s facility in
Japan, Weeks will note that “the restart of our Shizuoka plant is
on track,” adding that the facility is restarting capacity this
month with more planned in October. He will also say that the
company undertook additional efforts to ease some of the impact
from the disruption by restarting production units in Taiwan that
it originally planned to have available later this year. The
company will note it has been allocating capacity to its customers,
but customer demand still exceeds its ability to supply. The
company expects that the rebuild at Shizuoka will result in
approximately $22 million in incremental accelerated depreciation
charges in the third quarter.
The company now anticipates sequential volume at its wholly
owned business to be down less than 5% sequentially in the third
quarter, versus its previous estimate of down 5% to 10%. At Samsung
Corning Precision Glass Co., Ltd. (SCP), the company’s equity
company, third-quarter volume guidance remains unchanged at flat to
up slightly sequentially. The company estimates the sales impact
from the disruption will be about $25 million in the third quarter.
The impact of the disruption has been partially mitigated by
restarted production in Taiwan. The net impact to corporate gross
margin will be approximately 2% in the third quarter, primarily
related to the incremental accelerated depreciation.
The display supply chain “is expanding in preparation for what
we now believe will be a stronger fourth quarter than we previously
thought,” Weeks will say. “As a result, we now anticipate worldwide
glass demand in the fourth quarter will be as strong as the third
quarter.” The company has not finalized its fourth-quarter outlook,
but at this time believes volume at both its wholly owned business
and SCP will be flat to up slightly versus the third quarter.
The company also expects fourth-quarter glass pricing to be flat
sequentially.
On the retail front, Weeks will report, “LCD TV demand continues
to be robust.” Preliminary retail data provided by NPD, an
independent consumer market research firm, suggests LCD TV unit
sales in the U.S. in August increased 14% over last year. “We were
encouraged by the week-to-week trend, which showed significant
year-over-year growth in the third week of August. We believe this
step up in demand was the result of strong back-to-school sales,”
Weeks will add. Similarly, August unit sales increased in Japan by
57%, as indicated by independent research firm BCN.
Corning's comments to investors at the Citi Global Technology
Conference will be available by accessing the IR events calendar on
Corning's Web site. To access the calendar, go to
www.corning.com/investor_relations and click Investor Events on the
left.
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.
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