Corning Q4 Profit Rises On Lower Costs - Update

(RTTNews) - Corning Inc. (GLW) Tuesday reported an increase in profit for the fourth quarter, driven largely by lower operating expenses and restructuring costs that offset a drop in revenues. Moving ahead, the company expects LCD glass prices to decline more than the previous quarters. Shares of Corning are currently down seven percent on the New York Stock Exchange.

New York-based Corning's fourth-quarter profit rose to $421 million or $0.30 per share from $155 million or $0.10 per share last year.

Excluding special items, earnings for the quarter were $410 million or $0.29 per share. On average, 19 analysts polled by Thomson Reuters expected a profit of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Corning's net sales for the fourth quarter dropped to $1.96 billion from $2.15 billion a year ago. Core net sales were down to $2.00 billion, compared to $2.04 billion a year ago. Analysts expected revenue of $1.93 billion for the quarter.

Sales at display technologies division, which is Corning's largest business, core sales dropped 5 percent. However, the company said price declines for the quarter were moderate. Total LCD glass volumes improved 4 percent over the year-ago period.

Optical communications segment sales rose 12 percent, driven largely by carrier network sales in North America, China, and European markets. Environmental technologies segment sales rose 9 percent, while life sciences segment improved 14 percent.

Sales at specialty materials unit, which produces the Gorilla Glass, dropped 29 percent to 285 million. Core earnings for the segment plunged 42 percent hurt by lower Corning Gorilla glass volumes.

Selling, general and administrative expenses dropped to $332 million from $356 million, while research, development and engineering costs declined to $169 million from $219 million last year.

Restructuring, impairment and other charges were $71 million compared to last year's $133 million.

For the first quarter, Corning anticipates that glass volume in its Display Technologies segment will be down slightly sequentially, in line with normal seasonality. The company also expects LCD glass price declines to be more than previous quarters.

GLW is currently trading at $17.39, down $0.83 or 4.58%, on a volume of 18 million shares.