Flat-panel television sales have remained at a good level, despite the global economic crisis, a good sign for Corning Inc.
US sales of liquid-crystal-display (LCD) televisions in February 2009 repor…
Flat-panel television sales have remained at a good level, despite the global economic crisis, a good sign for Corning Inc. US sales of liquid-crystal-display (LCD) televisions in February 2009 reportedly saw an increase of 39% compared to 2008, while sales in Japan went up 30%. Europe saw a 49% increase, and China 109%. At the same time, the company raised its 1Q forecast, excluding items, to a profit from break-even due to curtailed inventory. Even if a decrease of about 4% in worldwide sales of televisions are expected in 2009, Corning sees LCD TV sales increasing by about 9%. Jeff Evenson, an analyst at Sanford C. Bernstein, upped his earnings forecast for Corning to 94 cents a share, from 65 cents per share for 2009, at the beginning of April. Thornburg Investment Management portfolio manager Connor Browne sees Corning“s earnings reaching a run rate of USD 1.50 per share per year as the economic recovery starts up. A normalized multiple of 15 applied to those earnings would put the stock“s price at about USD 22.50, an increase of 50% for its present level of about USD 15. The company“s other business, providing optic fiber to the telecommunications industry and emissions control systems to the automotive industries, is also expected to remain under pressure due to the economy.