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Corning to beat profit forecast for first quarter

Telecommunications wiring firm Corning Inc. said that strong demand for its optic fibres are expected to drive first-quarter earnings before special items well above current Wall Street analysts“ con…

 

Telecommunications wiring firm Corning Inc. said that strong demand for its optic fibres are expected to drive first-quarter earnings before special items well above current Wall Street analysts“ consensus estimate of US$ 0.48 per share. Based on its strong results through February, the company said first-quarter earnings are seen in the range of US$ 0.53 to US$ 0.55, about 50% above the year-ago quarter of 0.36 cents. “Demand for our LEAF optical fibre used by leading long-distance providers worldwide continues to grow at a significant rate and is the primary reason for our improved first-quarter earnings outlook,” Roger G. Ackerman, Corning“s chairman and CEO, said in a statement. Corning recently announced plans to invest US$ 750 million to expand its fibre-making capacity by 50% to keep pace with the growing demand. The company said that it also expects to exceed the current full-year earnings consensus estimate of US$ 2.35 per share before special items, as polled by First Call/Thomson Financial, by at least US$ 0.10. The revised outlook represents growth approaching 30% on a year-to-year basis. Corning“s products also include plastic and glass laboratory products and pollution control equipment. Special charges related to Corning“s acquisitions of Oak Industries and British Telecommunications“ Photonics Technology Research Centre will be included in its first-quarter results. These items will reduce reported first-quarter and full-year results by about US$ 70 million after tax, or US$ 0.25 per share. Corning expects to report its first-quarter results after the close of the New York Stock Exchange on April 24.

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