Corning Profit Falls 23%, Yet Tops Estimates - Update

(RTTNews) - Specialty glass maker Corning Inc. (GLW), Wednesday reported a decline in third-quarter profit due mainly to lower equity earnings from affiliated companies and higher income tax provision.

Excluding items, earnings climbed from last year and topped Wall Street estimates, led by demand for its toughened Gorilla Glass and fiber optic products.

Moving ahead, Corning expects a sequential decline in fourth-quarter results due to the seasonal impact on its non-display businesses. The company sees a drop in optical fiber sales volume especially in North America and China.

Corning offer products such as glass substrates for LCD televisions and optical fiber for telecommunications networks.

The New York-based company reported third-quarter net income of $408 million or $0.28 per share, compared with $533 million or $0.36 per share last year.

Results for the quarter included, among other items, equity earnings from affiliated companies of $138 million, compared with $240 million a year ago.

Excluding items, core earnings for the quarter were $487 million or $0.33 per share, compared with $415 million or $0.28 per share in the prior year.

On average, 17 analysts polled by Thomson Reuters expected earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the third quarter were up at $2.07 billion, compared with $2.04 billion a year ago. Seventeen analysts had a consensus revenue estimate of $2.09 billion for the quarter.

Core net sales increased to $2.11 billion from $1.92 billion last year.

Among segments, Telecommunications sales climbed 24 percent year-over-year and Specialty materials were up 8 percent. Sales at display technologies climbed 7 percent. Its smaller segment of Life Sciences jumped 39 percent.

Provision for income tax was higher at $141 million, compared with $94 million last year.

Recently Corning agreed to buy out Samsung Display Co. Ltd.'s stake in a jointly owned equity firm in Korea named Samsung Corning Precision Materials Co. Samsung Display will also invest $1.9 billion in new Corning preferred shares. This was part of efforts to extend its leadership in specialty glass and drive earnings growth.

Corning's stock is trading at $17.17, down $0.34 or 1.94%, on a volume of 7 million shares.