Corning Posts Smaller-Than-Expected Decline
January 26 2016 - 10:10AM
Dow Jones News
Corning Inc. said its fourth-quarter earnings fell less than
expected as price declines of its liquid-crystal-display glass
products eased.
Shares, which have fallen 3.2% over the past three months, rose
2.3% premarket to $17.15.
The company said LCD prices in the quarter logged the lowest
sequential decline of the year, while the decrease in 2015 was the
lowest in five years.
"We expect the first quarter to be the weakest of 2016, and we
anticipate growth will recover in subsequent quarters," said Chief
Financial Officer R. Tony Tripeny. "We are encouraged with the
moderation of LCD glass price declines, and we expect this trend
will continue into 2016."
For the quarter ended Dec. 31, Corning reported earnings of $224
million, or 17 cents a share, down from $988 million, or 70 cents a
share, a year earlier. Excluding one-time items, earnings slipped
to 34 cents a share from 42 cents a year earlier.
Sales slid 7.2% to $2.23 billion.
Analysts polled by Thomson Reuters had forecast earnings of 32
cents a share on $2.33 billion in revenue.
Selling, general and administrative expenses more than doubled
to $557 million from $242 million.
Last month, Corning said it would swap its stake in Dow Corning
for $4.8 billion and an interest in a semiconductor company, ending
a 72-year joint venture with Dow Chemical Co. that has faced
challenges in recent decades. Corning will also receive a 40% stake
in Hemlock Semiconductor Group, which makes semiconductors for the
solar-panel industry and is currently majority owned by Dow
Corning. Corning expects the moves to be "substantially
tax-free."
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 26, 2016 09:55 ET (14:55 GMT)
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