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Corning Q1 Profit Declines, But Tops Estimates; Shares Rise - Update

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4/25/2012 10:27 AM ET

Specialty glass and ceramic products manufacturer Corning Inc. (GLW: Quote) reported Wednesday a lower first-quarter profit, reflecting about 11 percent decline in sales in its Display Technologies segment. However, both earnings per share and revenues exceeded analysts' expectations. The shares rose more than 6 percent in the morning trade.

Looking ahead, Corning anticipate continued growth across four of its major business segments and a return to LCD glass revenue growth later this year in the Display segment. The company noted that after two successive quarters of significant LCD glass price declines, it expects price declines to be much more moderate in the second quarter.

Wendell Weeks, chairman, chief executive officer, and president of the company said, "Our overall business performance is on track with our expectations. First-quarter sales in our Telecommunications, Environmental Technologies, Life Sciences, and Specialty Materials business segments grew, and we continued making strategic investments to create new revenue streams for the company."

Sales in the Display Technologies segment were $705 million, down 11 percent from the prior year. LCD glass price declines were in line with its expectations, the company said.

Display Technologies' wholly owned business LCD glass volume increased about 10 percent from the year-ago quarter. The company expects stronger LCD glass volume growth later in the year, driven mainly by normal retail seasonality.

Corning sees continued demand for Corning Gorilla Glass for the hand-held and information technology markets. In the first quarter, net income attributable to the company fell to $462 million or $0.30 per share from $748 million or $0.47 per share reported a year ago. On average, 20 analysts polled by Thomson Reuters expected the company to earn $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $1.92 billion, unchanged from last year, but exceeded analysts' estimate of $1.87 billion. Revenues increased 2 percent sequentially.

GLW is currently trading at $14.15, up $0.80 or 6.03 percent, on a volume of 8.14 million shares on the NYSE.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Stocks have moved mostly higher in early trading on Wednesday, adding to the gains posted in the two previous sessions. The major averages have all moved to the upside, although buying interest has waned since the open. Industrial production in the U.S. rose by more than expected in the month of March, the Federal Reserve revealed in a report on Wednesday, with the report also showing a notable upward revision to the pace of production growth in the previous month. The report said industrial production increased by 0.7 percent in March after surging up by an upwardly revised 1.2 percent in February. Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department on Wednesday, although starts still came in well below economist estimates. The report showed that housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000.
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