Corning Incorporated (NYSE: GLW) Vice Chairman and Chief Financial Officer James B. Flaws, and Senior Vice President and Corning Optical Fiber General Manager Martin J. Curran will reaffirm growth expectations for Corning’s businesses when they meet with investors today at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco. Corning’s comments at the conference can be heard via webcast at www.corning.com/investor_relations.
“Telecom is back,” Curran will tell investors. “We expect significant growth in four key segments of the telecommunications industry: optical fiber, fiber-to-the-home, enterprise networks, and wireless. Explosive bandwidth demand – driven largely by the growth of smart mobile devices and their increasing data consumption – is the megatrend behind this growth.”
“We are seeing network providers around the world stepping up to address the tremendous increase in IP traffic and subscription growth with substantial investments in their networks. In fact, the fiber market today is double what it was in 2000,” Curran will add. “And Corning is well positioned to address these opportunities with our superior product offerings and world-class manufacturing.”
In remarks to investors, Flaws will provide an update on first-quarter guidance for the Display Technologies business. He will confirm that the company is not anticipating much sequential change in the overall glass market in the first quarter, and that volume at Corning’s wholly owned business should be in line with the glass market. “However,” Flaws will add, “volume at Samsung Corning Precision Materials, Ltd. is now expected to be at the low end of the previous guidance range – down in the low-double-digit range sequentially. This change is driven by the dispute with a key customer in Korea. Samsung Corning Precision Materials continues to ship to the customer but at a lower level than the original agreement.”
Flaws will reiterate the company’s previous guidance of significant double-digit price declines over the cumulative two-quarter period, starting in the fourth quarter of last year. “We believe that our pricing actions, combined with our capacity decisions, will help us get back to more moderate price declines in the near future. Reducing the level of price declines is Corning’s top priority.”
Curran and Flaws will also confirm that Corning’s other businesses are on track to meet the following previously disclosed growth expectations:
- Telecommunications full-year sales are expected to be up significantly; first-quarter sales are expected to increase between 5% and 10% sequentially and year over year. Segment sales are expected to reach $3 billion by 2014.
- Environmental Technologies 2012 sales are expected to grow, driven primarily by global demand for diesel emissions products; first-quarter sales are expected to increase slightly. The segment is expected to reach $1.4 billion in sales by 2014.
- Specialty Materials sales will be led by Corning® Gorilla® Glass; first-quarter segment sales are anticipated to be up slightly. Corning’s Gorilla Glass sales are expected to grow “materially” through 2014.
- Life Sciences expects another strong year of sales, through a combination of organic growth and acquisitions; first-quarter sales are expected to increase 10% sequentially. Segment sales are forecasted to nearly double to $1 billion by 2014.
Corning's comments to investors at the Morgan Stanley Technology Conference will be available by accessing the IR events calendar on Corning's website. To access the calendar, go to www.corning.com/investor_relations and click Investor Events on the left.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning’s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, 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; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed 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.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 160 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.