Join        Login             Stock Quote

Corning (GLW) 4Q Earnings Drop 42 Pct, Yet Beat Estimates; Shares Rise

 January 29, 2013 08:20 AM

(By Balaseshan) Specialty glass and ceramics maker Corning Inc. (NYSE: GLW) reported a 42% drop in quarterly earnings due to lower equity in earnings of affiliated companies. However, earnings and revenue exceeded Street's expectations, sending its shares up 3.37% in premarket.

Earnings per share for the fourth quarter fell 39% to $0.19. Excluding special items, earnings per share rose to $0.34 from $0.33.

Sales increased 14% to $2.15 billion.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.32 per share on revenue of $2.07 billion for the fourth quarter.

[Related -Ride Apple's Success With This 'Secret' Stock]

Specialty Materials sales were up 68% year over year, driven by strong growth in consumer sales of handheld and IT devices containing Corning Gorilla Glass, which can now be found on more than 1 billion devices worldwide, the company said.

Telecommunications sales rose 10% year over year, while sales in the Display Technologies segment were up about 3%.

Dow Corning Corp.'s equity earnings were down 33% on a year-over-year basis, driven by weak results in the sales and production of polysilicon for the solar industry.

Equity in earnings of affiliated companies fell to $93 million from $321 million. The latest quarter results included restructuring and asset impairment charges related to workforce reductions and asset write-offs at Dow Corning, and an impairment charge related to asset write-offs Samsung Corning Precision Materials.

[Related -Corning Inc. (GLW) Q2 Earnings Preview: Bullish Earnings - Bearish Guidance?]

"We are not without challenges in 2013 as we continue to face an uncertain global economy, but we enter the year with prospects for growth in Specialty Materials, Telecommunications, Environmental Technologies and Life Sciences. In our LCD glass business, we expect our market share to be stable, and price declines to be moderate," said James Flaws, chief financial officer of Corning.

Among the many macro-economic uncertainties the company face is the valuation of the Japanese yen versus the U.S. dollar. While beyond control, the recent sharp depreciation of the yen could negatively impact Corning's reported net earnings if the present level holds or the currency depreciates further in 2013, the company said.

"We are evaluating ways to potentially mitigate the impact of any further weakening in the yen-to-dollar exchange rate. The positive market trends in our major businesses should drive demand for all of Corning`s existing and emerging technologies, creating terrific opportunities for us," Flaws concluded.

GLW closed Monday's regular session down 0.74% at $12.15. The stock has been trading between $10.62 and $14.58 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageGoogle: Still Opportunities Ahead

Google (GOOGL) shares are finally recovering after announcing third-quarter earnings last week that were read on...

article imageThis Technical Indicator May Be The Simplest Way To Pick Winning Stocks

What's the first rule of successful real estate investing? Of course, you just said to yourself, "location, read on...

article imageUpdate On Crude Oil Markets

Crude prices came under pressure again today. According to Reuters (from last week), the Saudis “will read on...

article imageDelta Air Lines (DAL): Panic Selling Makes This Airline Stock Ripe For A Quick Pop

If there ever were a teaching moment in the stock market, it was this week. Earnings, trendlines and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.