CORNING, N.Y., March 3 /PRNewswire-Asia/ -- In speaking to investors at the Morgan Stanley Technology Conference in San Francisco on March 2, Corning Incorporated (NYSE: GLW) President and Chief Operating Officer Peter F. Volanakis ( http://www.corning.com/investor_relations/corporate_governance/our_leadership/peter_volanakis.aspx ) shared updates on key topics relevant to the company’s Display Technologies ( http://www.corning.com/displaytechnologies/en/index.aspx ) segment and other businesses. He also addressed questions posed by investors.
(Logo: http://www.prnasia.com/sa/200708141205.jpg )
“The data points we are seeing for both LCD television retail sales and panel makers are encouraging and continue to give us confidence that the supply chain is on the right track,” Volanakis said. “Retail sales of LCD TVs have continued to be strong, panel inventories on average remain healthy, and panel prices are stabilizing. The current trends look positive.”
Data supplied by NPD Group, an independent consumer market research firm, shows that in the U.S. alone, January unit sales of LCD TVs increased 35% over 2008. Similarly, unit sales in China and Japan grew 109% and 17%, respectively. The first two weeks of February appear positive as well with U.S. sales up 40% year over year. As a reminder, the company is forecasting worldwide LCD TV unit sales to increase by 9% for the full year.
Addressing the supply chain, Volanakis spoke of healthy inventories and stable prices, remarking, “We continue to be encouraged by news coming out of the panel makers. In fact, for 19-inch and 32-inch TVs -- the most popular sizes -- we have seen panel price increases this month.” The company is also seeing an increase in Taiwanese and Korean panel maker utilization rates from January to February. “In this type of environment, where panel makers are generating cash, there could be less pricing pressure on component suppliers.”
“This is why we continue to have confidence that the display supply chain will stop contracting at the end of the first quarter,” Volanakis said.
Additionally, he reiterated that Corning’s 2009 revenue expectation of $5 billion requires an increase in overall LCD panel sales in the second half of this year.
No new information was presented on the company’s environmental business, which continues to be impacted by the recession. In the telecommunications segment, “we remain cautious” as the business has yet to feel material impact from the economy.
Corning’s comments to investors at the Morgan Stanley Technology Conference are available by accessing the IR events calendar on Corning’s Web site at http://www.corning.com/investor_relations .
About Corning Incorporated
Corning Incorporated ( http://www.corning.com ) is the world leader in specialty glass and ceramics. Drawing on more than 150 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.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes in global economic and political conditions; currency fluctuations; product demand and industry capacity; competition; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; changes in the mix of sales between premium and non-premium products; new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability 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; stock price fluctuations; and adverse litigation or regulatory developments. Additional risk factors are identified 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.