Corning Inc., the world“s largest maker of liquid-crystal-display glass for flat-screen televisions, raised its profit outlook for the 4Q 2007 on 13 November. Citing strong sales and orders over the …
Corning Inc., the world“s largest maker of liquid-crystal-display glass for flat-screen televisions, raised its profit outlook for the 4Q 2007 on 13 November. Citing strong sales and orders over the last six weeks, the industrial materials company expects to earn USD 0.38 to USD 0.40 a share in the October-to-December 2007 period, up from a previous forecast of USD 0.36 to USD 0.38. The projections exclude restructuring, impairment and other one-time charges. Sales will range from USD 1.53 billion to USD 1.56 billion, compared with a previous estimate of USD 1.50 billion to USD 1.55 billion, it said. “Our display business is running at full capacity and manufacturing performance in October was outstanding”, said Corning“s president and chief operating officer, Peter Volanakis. For the full year, Corning expects sales growth of about 12% and earnings per share growth of at least 23%. That translates into earnings of at least USD 1.38 a share on sales of about USD 5.79 billion. In 2006, the company posted adjusted earnings of USD 1.12 per share on sales of USD 5.17 billion. Cowen & Co. analyst John Anthony maintained a neutral rating on the stock. “We are encouraged with Corning“s outlook and we note that its commentary is largely in-line with October results of the liquid crystal display panel makers”, Mr. Anthony said in a note to investors. “Having said this, it is unlikely that Corning“s improved outlook is reflective of consumer demand trends, but rather reflective of set-top makers increasing inventory levels in anticipation of the holiday shopping season”.