Corning Sees 3Q Growth Thanks to LCD Displays

Specialty glass and ceramics manufacturer, Corning, Inc. reported a 3 percent increase in profit for the third quarter, thanks to a lift from the demand generated from flat panel LCD TVs, smartphones and touch-screen tablets requiring its optical fiber and glass.

South Korean TV-panel manufacturers are reporting similar demand from their own positive figures for the same quarter.

The U.S.-based increase in retail demand for LCD (liquid crystal displays) is up to 20 percent for the year, climbing 10 percent in July and August and 13 percent in September,“which is actually the strongest growth rate we’ve seen all year," added Chief Financial Officer Jim Flaws, "And for the first two weeks of October, sales in the U.S. are up 13 percent.”

The growth has lead to the raise of 41 cents in Corning’s shares (3 percent), closing at $14.13 on Wednesday.  Bloomberg pointed out the company’s shares have fluctuated throughout the year from $11.51 to $23.43.

The company has a hold of more than 60 percent of the global market in LCD glass – making it the world’s largest maker of its kind. Its sales in LCD glass showed a 26 percent growth in the third quarter to $815 million.

Research group DisplaySearch predicts 206 million LCD TV shipments worldwide in 2011 – a 7.5 percent increase from the year before, while in North America alone, shipments may slip 2 percent to 37.5 million units.  However, these numbers tend to fluctuate, as another market research group three months ago said to expect a 2.5 percent increase in North American shipments.

Corning is also getting a slight boost from an increase in demand for Gorilla Glass – commonly used for mobile technology, particularly tablets and high-end TVs.  This revenue grew almost 90 percent to $299 million.

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