Company to Reiterate Fourth-quarter Guidance, Provide Perspective on LCD
Industry Trends
CORNING, N.Y., Nov. 16, /Xinhua-PRNewswire/ -- Corning Incorporated
(NYSE: GLW) Chief Operating Officer Peter F. Volanakis will address investors
at the UBS Global Communications and Technology Conference in New York on
Nov. 14.
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"We have no changes to the company’s fourth-quarter guidance as outlined
in our third-quarter earnings announcement on Oct. 24," Volanakis will tell
investors.
Volanakis will focus on key topics of interest to investors as they
evaluate current trends in the liquid crystal display (LCD) industry and the
potential impact of these trends on Corning’s Display Technologies business.
In addressing recent LCD glass price declines, Volanakis will
say, "Although LCD glass pricing is expected to be down again in the fourth
quarter, this should have no bearing on what the 2007 pricing environment
will be." In providing further clarification on this topic, he will
add, "While glass pricing is expected to decline each year, the extent of the
decline will be influenced by several factors including: supply and demand of
glass; supply chain stability; competition; and the transition to higher-
generation glass substrate sizes."
Volanakis will remind investors of Corning’s success in remaining
competitive in the fast-paced LCD industry through its significant LCD glass
manufacturing cost reduction programs averaging 14 percent per year from 1997
through 2005. "Clearly, the strong gross margin we have achieved this year,
in light of the significant price declines, is a good indication of how
successful our ongoing cost reduction programs have been. Looking forward,
the opportunities for further cost reductions remain robust," Volanakis will
say.
In reviewing the growth drivers of future LCD glass demand, Volanakis
will remind investors that the majority of the glass shipped today still goes
into information technology products, such as monitors and laptops, which do
not have the same seasonal surges and declines as TV. He will also point out
that the biggest growth driver for glass will be the increase in LCD TV
penetration, which has grown each quarter over the last several years.
Volanakis will also address the potential impact of seasonality and other
factors on capacity utilization. "At Corning, we have some levers within our
control to help us adjust production to market dynamics, including the
modularity of our manufacturing facilities and the flexibility of our tank
repairs and product conversion."
Volanakis will reaffirm Corning’s expectation for the LCD glass market
to grow by approximately 50 percent, or by nearly 400 million square feet
this year, with the total LCD glass market expected to reach approximately
1.2 billion square feet. "Given LCD TV penetration and average screen size
growth rate expectations, we are anticipating another strong year of LCD
glass volume growth in 2007," he will conclude.
Corning’s presentation to investors at the UBS Global Communications and
Technology Conference will be available via webcast by accessing the IR
events calendar on Corning’s Web site at
http://www.corning.com/investor_relations .
Corning Vice Chairman and Chief Financial Officer James B. Flaws will
also be meeting with investors at the Credit Suisse Annual Technology
Conference in Scottsdale, Ariz. on Nov. 28.
Presentation of Information in this News Release
Non-GAAP financial measures are not in accordance with, or an alternative
to, GAAP. Corning’s non-GAAP EPS measure excludes restructuring, impairment
and other charges and adjustments to prior estimates for such charges.
Additionally, the company’s non-GAAP measure excludes adjustments to
asbestos settlement reserves required by movements in Corning’s common stock
price, gains and losses arising from debt retirements, charges resulting from
the impairment of equity or cost method investments, or adjustments to
deferred tax assets, and gains or losses recognized in equity earnings from
restructuring, impairment or other charges or credits taken by equity method
companies. The company believes presenting non-GAAP EPS measures are helpful
to analyze financial performance without the impact of unusual items that may
obscure trends in the company’s underlying performance. These non-GAAP
measures are reconciled on the company’s Web site at
http://www.corning.com/investor_relations and accompany this news release.
About Corning Incorporated
Corning Incorporated ( http://www.corning.com ) is a diversified
technology company that concentrates its efforts on high-impact growth
opportunities. Corning combines its expertise in specialty glass, ceramic
materials, polymers and the manipulation of the properties of light, with
strong process and manufacturing capabilities to develop, engineer and
commercialize significant innovative products for the telecommunications,
flat panel display, environmental, semiconductor, and life sciences
industries.
Forward Looking Statement
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; tariffs,
import duties and currency fluctuations; product demand and industry
capacity; competition; manufacturing efficiencies; cost reductions;
availability and costs of critical components and materials; new product
development and commercialization; order activity and demand from major
customers; changes in the mix of sales between premium and non-premium
products; facility expansions and new plant start-up costs; possible
disruption in commercial activities due to terrorist activity, armed
conflict, political instability or major health concerns; adequacy and
availability of insurance; capital spending; 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.
