Corning Posts Smaller-Than-Expected Profit Decline

By Anne Steele 

Corning Inc. said its fourth-quarter earnings fell less than expected as price declines of its liquid-crystal-display glass products eased.

Shares, which have fallen 3.2% over the past three months, rose 2.3% premarket to $17.15.

The company said LCD prices in the quarter logged the lowest sequential decline of the year, while the decrease in 2015 was the lowest in five years.

"We expect the first quarter to be the weakest of 2016, and we anticipate growth will recover in subsequent quarters," said Chief Financial Officer R. Tony Tripeny. "We are encouraged with the moderation of LCD glass price declines, and we expect this trend will continue into 2016."

For the quarter ended Dec. 31, Corning reported earnings of $224 million, or 17 cents a share, down from $988 million, or 70 cents a share, a year earlier. Excluding one-time items, earnings slipped to 34 cents a share from 42 cents a year earlier.

Sales slid 7.2% to $2.23 billion.

Analysts polled by Thomson Reuters had forecast earnings of 32 cents a share on $2.33 billion in revenue.

Selling, general and administrative expenses more than doubled to $557 million from $242 million.

Last month, Corning said it would swap its stake in Dow Corning for $4.8 billion and an interest in a semiconductor company, ending a 72-year joint venture with Dow Chemical Co. that has faced challenges in recent decades. Corning will also receive a 40% stake in Hemlock Semiconductor Group, which makes semiconductors for the solar-panel industry and is currently majority owned by Dow Corning. Corning expects the moves to be "substantially tax-free."

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

January 26, 2016 09:50 ET (14:50 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.