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Corning COO to Address Investors at UBS Global Technology and Services Conference

2007-11-16 16:00 600

Company raises fourth-quarter guidance

CORNING, N.Y., Nov. 16 /Xinhua-PRNewswire/ -- Corning Incorporated (NYSE: GLW) President and Chief Operating Officer Peter F. Volanakis updated the company's fourth-quarter guidance and address key topics relevant to the company's growth business opportunities at the UBS Global Technology and Services Conference in New York on Nov 13, 2007. The company's fourth-quarter earnings per share (EPS), before special items,* is now expected to be in the range of $0.38 to $0.40, up from the previous guidance of $0.36 to $0.38. Sales are now expected to be in the range of $1.53 billion to $1.56 billion, versus the original expectation of $1.50 billion to $1.55 billion.

(Logo: http://www.prnasia.com/sa/200708141205-min.jpg )

"The increase in sales and EPS guidance reflects strong October results, November orders and operating performance in our Display Technologies business," Volanakis will say. Sequential volume growth in the company's wholly owned liquid crystal display (LCD) glass business and Samsung Corning Precision Glass Co., Ltd. (SCP) is expected to be at the upper end of the previous guidance range of 2% to 5%.

The company's overall gross margins in the fourth quarter are now expected to be in the range of 48% to 49%, versus the previous guidance of 47% to 48%. The recent movement in the U.S. dollar and Japanese yen exchange rates is also having a positive impact on the company's earnings. Additionally, equity earnings are now expected to grow sequentially by 5%, versus the previous flat growth expectation, primarily due to the stronger volume at SCP.

In discussing the company's updated fourth-quarter guidance, Volanakis will say, "Our display business is running at full capacity and manufacturing performance in October was outstanding. If the recent strength in the Japanese yen continues for the rest of the quarter, the company should be able to meet the upper end of its revised EPS guidance."

"Corning's full-year 2007 results, including our fourth-quarter expectations, should be exceptional," Volanakis will add. "We anticipate year-over-year sales growth of approximately 12% and earnings-per-share growth of at least 23%."

* These are non-GAAP financial measures. The reconciliation

between GAAP and non-GAAP measures is provided in the tables

following this news release, as well as on the company's

investor relations website.

Volanakis will confirm the strength of the liquid crystal display (LCD) supply chain conditions as he reviews key topics relevant to investors' evaluation of industry trends and their potential impact on Corning's Display Technologies business. "End market trends continue to be very favorable. The supply chain remains healthy, as panel makers continue to run at peak utilization rates and with low amounts of inventory. Corning and SCP are running at full capacity to meet demand," he will say.

"Corning's Display Technologies expects continued success as it addresses these favorable industry conditions with its effective approach to pricing, robust cost reduction programs and world-leading innovations," he will add. "Anticipated fourth-quarter price declines of just 8% compared to one year ago, and 2007 gross margin rates higher than 2006 provide evidence that our strategies are working. We expect to continue these approaches as we move forward into the tight LCD glass supply-and-demand situation expected in 2008."

Volanakis will also address organic light-emitting diodes (OLEDs), an emerging display opportunity for Corning. "While OLED technology continues to face some significant hurdles, it is clearly emerging as a next-generation technology," he will note. "Corning expects to play a significant role in the future of OLEDs, not only through continued utilization of our LCD glass, but also through a new, proprietary sealing technology. We believe there is an opportunity for Corning to capture a higher-dollar content per OLED display in the future."

Recent speculation regarding the use of soda lime glass for LCD glass substrates will also be addressed by Volanakis. "We believe that the recent soda lime glass announcement by a Korean panel maker is an attempt to stimulate lower LCD glass prices. Even the highest quality soda lime glass cannot meet the basic requirements for active matrix LCD glass applications without adding substantial cost and complexity to the LCD panel manufacturing process. In addition, there is a high risk of sodium contamination that would limit the function and lifetime of the display. Our customers continue to demand increasing volumes of the highest quality and performance glass substrates. Therefore, we do not consider the commercialization of a TFT LCD containing soda lime glass to be imminent or practical," he will say.

Updates on events relevant to Corning's telecommunications business, particularly the multiple dwelling unit (MDU) market, will also be covered. The Oct. 31, 2007 ruling by the Federal Communications Commission, by which exclusive access agreements between MDU owners and video service providers are nullified, will be noted by Volanakis as an action that encourages development of the MDU market and provides further opportunity for Corning's new ClearCurve(TM) product platform.

"With successful product test trials under way and positive feedback being received from within and outside the telecommunications industry, we are very encouraged about the advancement of our new optical fiber technology," Volanakis will add. "Most recently, the company's ClearCurve product line was recognized as one of TIME Magazine's best inventions of the year."

Corning's presentation to investors at the UBS Global Technology and Services Conference will be available via webcast by accessing the IR events calendar on Corning's Web site at http://www.corning.com/investor_relations .

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.

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.

Source: Corning Incorporated
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