Corning 2Q profit jumps on gain, outlook is weak
Corning Inc said on Wednesday its second-quarter profit surged thanks to a hefty one-time tax gain and strong demand for glass used in flat-screen televisions and computers.
By Agencies |
ROCHESTER/NEW YORK: Corning Inc said on Wednesday its second-quarter profit surged thanks to a hefty one-time tax gain and strong demand for glass used in flat-screen televisions and computers. But the company forecast third-quarter sales below Wall Street expectations.
The Corning, New York-based company, the world's largest maker of glass for LCD televisions and PCs, also said it is buying back up to $1 billion of its outstanding stock.
Quarterly net income climbed to $3.2 billion, or $2.01 a share, from $489 million, or 30 cents a share, a year earlier. Excluding a $2.43 billion tax-related gain and other items, profit was in line with Wall Street's 49-cent-per-share forecast.
Sales rose 19 percent to $1.69 billion from $1.42 billion, falling shy of the $1.72 billion in sales forecast by analysts polled by Thomson Financial.
U.S. sales of LCD-TVs have been up more than 30 percent year-over-year in the first half and are still expected to grow between 25 percent and 30 percent this year even as the nation's economy falters, the company said.
``Despite concerns of a U.S. economic slowdown, Corning performed very well,'' Chief Executive Wendell Weeks said. ``We saw continued strong demand for our LCD glass substrates throughout the quarter.
ADVERTISEMENT
However, Corning forecast third-quarter profit of 48 cents to 51 cents per share, excluding special items, as sales are projected to grow 6 percent to 11 percent to between $1.65 billion to $1.72 billion. While the profit forecast represents 26 percent to 34 percent growth year-over-year, the sales estimate falls well below Wall Street's projections of $1.79 billion. Corning said its display technologies sales jumped 33 percent to $809 million from $610 million, and sales in its telecommunications unit rose 9 percent to $477 million on strong optical fiber sales.
Environmental technologies sales also rose 9 percent to $209 million from $191 million, fueled by its diesel pollution-filter business.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
