Corning Inc. revises LCD demand outlook

Corning Inc. Vice Chairman and Chief Financial Officer James B. Flaws revised down the company's third-quarter expectations Tuesday during a meeting with investors

Flaws spoke to investors at the Bank of America/Merrill Lynch Investment Conference in San Francisco.

"Our current view of the LCD market is that the supply chain is in the midst of an inventory correction and that our third-quarter glass demand will be lower than what we originally expected," Flaws told conference attendees.

In July, Corning said it expected panel manufacturers to moderate third-quarter production, while glass demand would remain consistent with the previous quarter. Corning now anticipates its total third-quarter glass volume to be down about 5 percent compared to the second quarter, according to a news release.

Flaws said that the company has seen downward adjustments in panel utilization rates, mainly by Taiwanese and Japanese manufacturers. As a result, glass demand in Corning's wholly-owned business will be down about 25 percent sequentially. However, Samsung Corning Precision Glass Co. Ltd. is expected to be up 5 percent due to continued strong production levels at Korean panel manufacturers.

"While overall glass demand will be lower in the third quarter," Flaws said, "LCD sales at retail for the first seven months of the year are in line with our expectations. LCD TV sales demand has remained strong across all geographic regions except the U.S. in recent months. We continue to believe that global LCD TV sales will reach 185 million units this year, a 37 percent increase over 2009 levels."

The presentation is available via webcast by accessing the investor events calendar on Corning's website at