Jan 28 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
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.