Global LCD TV Sales Remain Strong
CORNING, N.Y., May 19 /PRNewswire-Asia/ -- Corning Incorporated (NYSE: GLW) President and Chief Operating Officer Peter F. Volanakis told investors on May 17 that "all of our businesses, including our equity ventures, are on track with our expectations for the second quarter" when he spoke at the J.P. Morgan Technology Conference in Boston at 8:40 a.m. Corning's comments at the conference can be heard via webcast at http://www.corning.com/investor_relations .
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Industry data indicates that retail demand for LCD TVs, notebooks, and monitors remains robust. April LCD TV unit sales increased 13% in the U.S. over last year. Similarly, unit sales in Europe and Japan increased 22% and 44%, respectively. "These growth rates continue to run ahead of our internal forecasts," Volanakis said. The retail data is the result of reports from a variety of independent consumer market research organizations (NPD, GFK and CMM) and the company's internal analysis.
In China, LCD TV demand appears to remain strong as well. "We do not yet have April retail data for China, but there are no indications that consumers' appetite has abated," Volanakis said. "Incentive programs continue and retail prices are very attractive. As a result, we still see 37 million LCD TV unit sales in China this year."
The company will note that second-quarter display volume expectations of mid-single-digit sequential growth for both its wholly owned business and Samsung Corning Precision Glass Co., Ltd., have not changed. Price declines are expected to be down slightly sequentially. Volanakis added, "The operating performance within our Display Technologies segment has been excellent."
Volanakis also commented that Corning's Telecommunications segment remains on track with the company's previous guidance of a 10% to 15% sequential increase. The business is experiencing very strong seasonal demand for both fiber and cable in North America and Europe driven by very strong pull from new private network builds, as well as from the start of a fiber-to-the-home ramp in Canada. Second-quarter sales in the Specialty Materials segment are expected to be in line with the company's guidance of a 15% to 25% increase over quarter one, primarily driven by Gorilla(R) glass. Sales in both the Environmental Technologies segment and the Life Sciences segment are also on pace with the company's guidance for the quarter.
Corning's comments to investors at the J.P. Morgan Technology Conference is available by accessing the IR events calendar on Corning's Web site. To access the calendar, go to http://www.corning.com/investor_relations and click Investor Events on the left.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning'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 the financial 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 fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; 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 other risk factors are detailed 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.