Corning Revenue Slides; LCD Price Declines Ease
April 26 2016 - 09:48AM
Dow Jones News
By Anne Steele
Corning Inc. reported its revenue slid more than expected in the
latest quarter, though price declines of its liquid-crystal-display
glass products eased and are expected to improve.
The company said LCD prices in the first quarter logged the
lowest sequential decline in five years, and it expects pricing to
moderate further in the current quarter.
"We expect that the company's performance for the remainder of
the year will show significant improvement from first-quarter
results, and that second-quarter results will reflect the strong
underlying trends in our businesses," said Chief Financial Officer
R. Tony Tripeny.
For the quarter ended March 31, Corning reported a loss of $368
million, or 36 cents a share, compared with a year-earlier profit
of $407 million, or 29 cents a share. The quarted was hurt by a
$894 million foreign-currency hedge loss. Adjusted earnings slipped
to 28 cents a share from 35 cents a year earlier.
Sales slid 9.6% to $2.05 billion.
Analysts polled by Thomson Reuters had forecast earnings of 28
cents a share on $2.23 billion in revenue.
In January, 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.
Shares, inactive premarket, have risen 18% over the past three
months to $20.97.
Write to Anne Steele at anne.steele@wsj.com.
(END) Dow Jones Newswires
April 26, 2016 09:33 ET (13:33 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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