Shares of Corning (NYSE:GLW) slid Wednesday after the company revealed a 17% decrease in second-quarter profit despite higher sales as the temporary halt of Sharps LCD TVs weighed on its display technologies business.
The Corning, N.Y.-based specialty glass and ceramic maker posted net income of $755 million, or 47 cents a share, down from $$913 million, or 58 cents a share, in the same quarter last year.
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The companys wholly-owned display technologies business saw volumes decrease during the period, leading to a 9% year-over-year decline in the unit's profit. The weaknesses were partly due to the anticipated temporary curtailment of LCD TV production by Sharp Electronics. Sharp resumed production in the latter part of the period.
Excluding special items, the company earned 48 cents a share, just ahead of average analyst estimates polled by Thomson Reuters of 47 cents.
Revenue for the three months ended June 30 was $2 billion, up 17% from $1.7 billion a year ago, beating the Streets view of $1.96 billion. Sales were led by an 11% increase in its specials materials segment and a 16% gain in telecommunications.
Second-quarter results were in line with our expectations, said Corning CEO Wendell Weeks. He added that the results demonstrate the company is moving toward its goal of becoming a more balanced global company by pursuing growth opportunities.
Looking ahead, Corning no longer expects Corning Gorilla Glass sales to reach $1 billion this year. They will likely come in at $800 million due to weaker-than-expected demand for its television cover glass.