Glass Forecast Clips Corning

Corning (GLW Quote - Cramer on GLW - Stock Picks) delivered solid second-quarter results but failed to brighten its outlook for the year, sending shares sliding 5% in early trading Wednesday.

The glassmaking giant beat analysts' estimates for the second quarter and guided in line for the third. But the liquid-crystal glass supplier squashed hopes for a major sales blowout amid consumers' strong desires for big TVs.

"We were happy with our performance led by a strong quarter in our display business," Corning Vice President of Finance Kate Asbeck said in an interview. Asbeck said that at the midpoint of this year, the company is ahead of where it was last year and "has a lot of momentum going into the back half."

But while the company pegs third-quarter volume growth at its liquid-crystal display business to be somewhere between 10% and 15% over second-quarter levels, there was no change to the full-year volume growth target of 35% to 40%.

Asbeck says stronger-than-expected display glass sales in the second quarter may have been a decision by panel makers to get an early start on building their supplies and not necessarily a sign of bigger full-year sales.

"We are keeping our eye on the end market," says Asbeck. "If demand is stronger, we're not sure the capacity is there to deliver beyond the current" forecast.

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