Corning Inc. said it sees 1999 operating profits rising about 24% from 1998 and 2000 earnings growing 20-25%, fuelled by demand for the devices that serve as the Internet“s backbone.
Chairman and ch…
Corning Inc. said it sees 1999 operating profits rising about 24% from 1998 and 2000 earnings growing 20-25%, fuelled by demand for the devices that serve as the Internet“s backbone. Chairman and chief executive Roger Ackerman pegged the Corning, New York-based glass and optical fibre maker“s 1999 earnings per share before special items at about US$ 1.86, up 24% from US$ 1.50 a year ago. He sees next year“s earnings at about US$ 2.25 to US$ 2.35 a share. The estimates track Wall Street forecasts. Analysts surveyed by First Call/Thomson see 1999 earnings at US$ 1.86 a share and 2000 at US$ 2.31 a share. Investors cheered Ackerman“s comments, with shares changing hands at a 52-week high of 106-1/2, up 2-1/2, in brisk trade. Next year“s growth at Corning, which invented fibre-optic cable over 20 years ago, is believed to stem from demand for optical fibre, cable and networking devices whose connection provides the Internet“s infrastructure. “We will soon close the books on one of the best years in Corning“s history and anticipate that 2000 will be another year of equally strong growth,” Ackerman said. He also said Corning“s sales of photonic devices, used to increase the capacity, speed and economics of communication networks, are up about 50% this year, and should grow at a similar pace in 2000. Growth will also come from flat-panel displays used in computer monitors and televisions, automotive substrates used in catalytic converters and life-science products used in drug discovery, Ackerman added. Investment in research, development and engineering will rise to slightly more than 8% of sales next year, Ackerman said. Much of that spending is earmarked for Corning“s telecommunications businesses, which currently represent some 60% of the company“s revenues.