Corning Incorporated’s (NYSE: GLW) Lisa Ferrero, general manager, Display Technologies, will update investors on the company’s display industry outlook at today’s Barclays Global Technology Conference in San Francisco, Calif. Ferrero’s presentation will cover several aspects of the LCD glass business, including volume expectations, pricing, capacity, and new technologies.
Ferrero will report that the company continues to witness a strong market for worldwide LCD glass, “driven by continued strong demand for larger LCD televisions at retail.” She will note that fourth-quarter expectations for LCD glass market demand, and Corning’s shipments have increased, reporting, “We now expect worldwide market demand to increase in the low-single digits versus our previous expectations of a slight sequential decline,” she will say. The company also expects its quarter-four glass price declines to be even more moderate than anticipated at the beginning of the quarter and glass shipments to be up low-single digits sequentially, in line with market growth.
“Glass supply is tight and is expected to remain tight to demand, as we look ahead into 2015. The expected growth of the LCD TV market, in both units and screen size, is the main driver of the anticipated growth in demand for glass,” Ferrero will say. The company sees advanced displays, such as ultra-high definition televisions, driving continued growth of the LCD TV market. The company is currently operating all of its on-line capacity to meet its contractual demand and expects to maintain its current share of the LCD glass market.
Ferrero will also note that she expects the glass price decline in 2015 to be more moderate than in 2014. “We expect favorable market conditions, such as increased LCD TV demand, the positive impact of a weak yen on panel maker profitability, and tightening supply; to result in a more moderate price decline in 2015. With stable share allowing us to continue to run manufacturing efficiently and reduce cost, and with a more moderate price decline, we expect to maintain profitability and to continue to deliver strong operating cash flow to the company.”
The company has no further changes to its outlook for the fourth quarter.
To listen to Corning’s comments at the conference via webcast, 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 (www.corning.com) is one of the world’s leading innovators in materials science. For more than 160 years, Corning has applied its unparalleled expertise in specialty glass, ceramics, and optical physics to develop products that have created new industries and transformed people’s lives. Corning succeeds through sustained investment in R&D, a unique combination of material and process innovation, and close collaboration with customers to solve tough technology challenges. Corning’s businesses and markets are constantly evolving. Today, Corning’s products enable diverse industries such as consumer electronics, telecommunications, transportation, and life sciences. They include damage-resistant cover glass for smartphones and tablets; precision glass for advanced displays; optical fiber, wireless technologies, and connectivity solutions for high-speed communications networks; trusted products that accelerate drug discovery and manufacturing; and emissions-control products for cars, trucks, and off-road vehicles.