Corning Inc. Chief Financial Officer Jim Flaws sees a strong 2H in the company“s flat panel screen business, adding that the company continues to see little competitive pressure.
Corning, which also…
Corning Inc. Chief Financial Officer Jim Flaws sees a strong 2H in the company“s flat panel screen business, adding that the company continues to see little competitive pressure. Corning, which also makes optical fiber and related communications hardware, has seen its LCD operations become the strongest part of its business. Flaws said capacity expansion plans for the business are on track. Despite an increase of flat panel inventory in the supply chain, Corning has not seen a fall in glass demand, Flaws told an investor conference hosted by Banc of America on 21 September 2005. He added that the television business will double year over year, so extra inventory is needed. Flaws said Corning continues to be the low-cost producer in glass displays. The company cut costs by an average of 13% each year for the last several years. Third quarter revenue from the telecommunications segment, once Cornings“ main operation, is expected to be flat to down slightly from the 2Q 2005. The business will continue to “bounce around” until there is a more sustained recovery from multiple service providers. At present, Verizon Communications (VZ) is the only phone company notably investing in its network, Flaws said. Overall, a recovery in the telecom industry is still unlikely, he said. Flaws backed Corning“s 3Q financial forecast for earnings of USD 0.20 to USD 0.22 a share, excluding special items, and revenue of USD 1.14 billion to USD 1.19 billion.