CORNING, N.Y., Dec. 7 /Xinhua-PRNewswire/ -- Corning Incorporated (NYSE: GLW) on Dec 5, 2007 announced it expects its 2008 capital expenditures to be in the range of $1.5 billion to $1.7 billion, as the company builds additional capacity in its Display Technologies segment to meet anticipated growth for large-size flat-panel televisions. These estimates include the capital expenditure of $400 million for Corning’s new Gen 10 facility in Japan, announced separately earlier on Dec 5, 2007.
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The company’s 2008 capital expenditures in the display segment are expected to be in the range of $800 million to $1.0 billion. In addition to the initial spending on the new Gen 10 facility, the company anticipates adding capacity to its existing liquid crystal display (LCD) glass manufacturing facilities in Taiwan.
"We expect that the LCD glass market will continue to grow into the next decade," said James B. Flaws, vice chairman and chief financial officer. "The LCD TV market is still in the early stages of adoption. We believe that consumers worldwide will replace existing CRT TVs with LCD TVs and expand the number of overall TV’s per home. In order for us to capture our share of this growth, we will need to add capacity."
Corning previously stated that it expects the overall LCD glass substrate market to reach 1.7 billion square feet of glass in 2007 and to grow again by at least 400 million square feet in 2008. The company expects LCD TVs will reach at least 47% penetration of the more than 200 million televisions sold worldwide in 2008.
Also included in the company’s 2008 capital expenditure plan is the previously announced improvement and renovation of the company’s research and development facility, as well as additional production capacity at its diesel manufacturing facility.
"While the amount of capital expenditures will be higher in 2008, we anticipate the company’s operating cash flow will grow again, allowing the company to generate strong free cash flow in 2008," said Flaws.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes in global economic and political conditions; currency fluctuations; product demand and industry capacity; competition; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; changes in the mix of sales between premium and non-premium products; new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability 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; stock price fluctuations; and adverse litigation or regulatory developments. Additional risk factors are identified in Corning’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 ( http://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.
