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Corning to Present at Barclaya?s Capital Global Technology Conference

^{Published on 2010-12-08 07:10:54 - Market Wire}
 

CORNING, N.Y.--([ BUSINESS WIRE ])--Corning Incorporated (NYSE: GLW) Senior Vice President and Corporate Controller Tony Tripenywill tell investors that aall of the companya™s segments are performing at or above our expectations for the fourth quartera when he speaks at the Barclaya™s Capital Global Technology Conference in San Francisco at 2 p.m. PT today.

"We still expect fourth-quarter gross margin to be lower than the third quarter, driven primarily by the seasonally lower demand in telecom, as well as higher glass price declines than previous quarters"

The company will note that fourth-quarter LCD glass market volumes are now expected to be consistent with those from the third quarter, a slight change to its previous guidance of flat to down slightly. aPanel maker utilization rates have changed recently, but these have not been material enough to significantly change our expectations for the overall glass market or our total glass volume this quarter,a Tripeny will say. Utilization rates at Taiwanese panel makers increased in October and November, in comparison to a very weak September. As a result, Corning now expects sequential volumes at its wholly owned business to be up about 10% versus its previous guidance of flat to down slightly.

However, Korean panel makers have recently lowered their utilization rates. As a result, sequential volumes at Samsung Corning Precision Materials Co., Ltd., are now expected to be down 5% to 10% versus previous guidance of flat to down slightly. aWe expect our total glass volumes in the fourth quarter to be consistent with the third quarter, in line with the overall glass market,a Tripeny will add. The company will have no changes to its glass pricing guidance for the fourth quarter.

Regarding the retail environment, Tripeny will tell investors that aearly retail data indicates sales of LCD TVs during the weeks leading up to, and including, Black Friday were in line with our expectations. In November, LCD TVs grew year-over-year in the U.S. for the first time since April, the result of attractive retail pricing.a

aAs we expected, inventory levels in the display supply chain appear to be improving as we move through the fourth quarter,a Tripeny will add. The company anticipates supply chain inventories will exit the fourth quarter between 16 and 16.5 weeks, compared to 17 weeks entering the fourth quarter.

Based on the recent strength in glass demand, the company expects its first-quarter glass price declines to be more moderate in comparison to the fourth quarter. First-quarter glass market volume is expected to be consistent with the fourth quarter.

Tripeny will also remark that fourth-quarter sales in the companya™s[ Telecommunications ], [ Life Sciences ], and [ Specialty Materials ] segments remain on track with the companya™s previously announced fourth-quarter guidance. Sales in the[ Environmental Technologies ]segment are running ahead of expectations, driven by the companya™s increased manufacturing production for light-duty diesel filters.

There will be no change to Corninga™s corporate gross margin expectations for the fourth quarter. aWe still expect fourth-quarter gross margin to be lower than the third quarter, driven primarily by the seasonally lower demand in telecom, as well as higher glass price declines than previous quarters,a Tripeny will say. In addition, as the company disclosed during its third-quarter conference call, there will be a one-time asset write-off related to the discontinuation of its green laser program. The amount of the charge will be approximately $17 million pre-tax. aAs a result, we expect corporate fourth-quarter gross margin to be about 43%,a Tripeny will add.

Tripeny will close with comments on the companya™s strengthened cash position through receipt of $1.2 billion in cash dividends from SCP. aWe expect to end the year with approximately $6 billion in cash on hand,a Tripeny will say. aThis level of cash gives us tremendous financial flexibility, allowing us to invest in our future through capital expansion and [ research and development ], as well as the ability to fund potential acquisitions and return cash to our shareholders.a

Corning's comments to investors at the Barclaya™s Capital Global Technology Conference will be available by accessing the IR events calendar on Corning's Web site. To access the calendar, go to [ www.corning.com/investor_relations ] and click Investor Events on the left.

Forward-Looking and Cautionary Statements

This press release contains aforward-looking statementsa (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corninga™s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions;conditions in thefinancial and credit markets;currency fluctuations;tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuationsandchanges in the mix of sales between premium and non-premium products; new plant start-upor restructuringcosts; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments.These and otherrisk factors aredetailedin Corninga™s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.

About Corning Incorporated

Corning Incorporated ([ www.corning.com ]) is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.

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