CORNING, N.Y. (AP) - Shares of Corning Inc. surged 10 percent
Tuesday after the world's largest maker of liquid-crystal-display
glass for flat-screen televisions upped its profit outlook for the
fourth quarter.
Citing strong sales and orders over the last six weeks, the
industrial materials company expects to earn 38 cents to 40 cents a
share in the October-to-December period, up from a previous
forecast of 36 cents to 38 cents. The projections exclude
restructuring, impairment and other one-time charges.
Sales will range from $1.53 billion to $1.56 billion, compared
with a previous estimate of $1.50 billion to $1.55 billion, it
said.
"Our display business is running at full capacity and
manufacturing performance in October was outstanding," said
Corning's president and chief operating officer, Peter Volanakis.
Analysts surveyed by Thomson Financial forecast fourth-quarter
earnings of 37 cents on sales of $1.55 billion.
Shares rose $2.14 to $23.54 Tuesday.
For the full year, Corning expects sales growth of about 12
percent and earnings per share growth of at least 23 percent. That
translates into earnings of at least $1.38 a share on sales of
about $5.79 billion.
In 2006, the company posted adjusted earnings of $1.12 per share
on sales of $5.17 billion.
Cowen & Co. analyst John Anthony maintained a neutral rating on
the stock.
"We are encouraged with Corning's outlook and we note that its
commentary is largely in-line with October results of the liquid
crystal display panel makers," Anthony said in a note to
investors.
"Having said this, it is unlikely that Corning's improved
outlook is reflective of consumer demand trends, but rather
reflective of set-top makers increasing inventory levels in
anticipation of the holiday shopping season."
Also Tuesday, Corning broke ground on a planned six-year, $300
million expansion of its Sullivan Park research hub, where about
1,500 of its 25,000 employees are based.
The expansion, first announced in April, "represents an
important milestone in Corning Inc.'s continuing commitment to
excellence in research and development," Gov. Eliot Spitzer said.
"These are the type of key projects that will continue to drive
the revival of the upstate economy."
(Copyright 2007 by The Associated Press. All Rights Reserved.)
