Corning Announces Improved 2Q LCD Volume Performance

LCD TV Retail Sales Remain Strong;
Strong Volume to Continue in 3Q
 
CORNING, N.Y., June 30, 2009 – Corning Incorporated (NYSE: GLW) Vice Chairman and Chief Financial Officer James B. Flaws today updated the company’s guidance of sequential second-quarter LCD glass volume growth, citing significant improvement in demand for LCD glass.
 
“Second-quarter glass demand is much stronger than we anticipated even a few weeks ago,” Flaws reported. “As a result, we now expect second-quarter sequential volume to be up approximately 100% at our wholly owned business.” He pointed out that the company has met much of the improved demand by drawing down its existing inventory. Additionally, the company has begun shipping glass from melting tanks that were restarted earlier in the quarter. Corning originally forecasted a second-quarter volume increase of more than 50%, and at the end of May revised volume growth expectations to more than 75%.
 
Samsung Corning Precision Glass Co., Ltd. (SCP) second-quarter sequential glass volume is expected to be up about 50%, an increase from both the more than 40% figure announced May 28 and the original expectation of more than 25% growth. Flaws pointed out that SCP’s volume did not decline as steeply as Corning’s wholly owned business did in the first quarter.
 
Regarding LCD glass pricing, Flaws said that second-quarter prices were moderate and substantially below the first-quarter price declines.
 
“As we exit this quarter,” Flaws added, “our model indicates that the industry’s second-quarter supply chain inventory is equivalent to inventory levels at the beginning of this year. We see this as a positive sign. Industry growth required a supply-chain expansion after the significant contractions we saw in the first quarter. As we go forward, we expect some further supply-chain expansion as the industry prepares for the seasonally stronger fourth quarter.”