Gorilla glass maker Corning says LCD glass price to decline
Jan 28 (Reuters) - Specialty glass maker Corning Inc said LCD glass prices would decline further in the current quarter, raising concerns about the growth prospects of its television display business, which brings in more than a third of the company's revenue.
Corning's shares fell 2.5 percent in premarket trading.
Corning's display technologies segment makes LCD panels for Sony Corp, LG and Lenovo Group.
"The company expects that price declines will return to moderate levels after the first quarter," Corning said in a statement on Tuesday.
The company, best known for its Gorilla glass used in smartphones made Apple Inc and Samsung Electronics Co Ltd, said fourth-quarter net income rose to $421 million, or 30 cents per share, from $155 million, or 10 cents per share, a year earlier.
A decline in Gorilla glass sales weighed on the company's core gross margin, which fell by 2 percentage points to 40 percent in the quarter.
Net sales fell 9 percent to $1.96 billion.
Corning's core earnings were 29 cents per share.
Analysts on average had expected a profit of 27 cents per share on revenue of $1.93 billion, according to Thomson Reuters I/B/E/S.
Sales in the optical communications business rose 12 percent to $605 million, driven by increased demand for optical fibers.
Corning's shares were trading at $17.85 before the bell.