Corning Earnings Tumble but Top Views

Second-quarter earnings and sales at the glassmaker declined but were ahead of the forecasts of analysts.
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CORNING, N.Y. (TheStreet) --


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said second-quarter earnings tumbled to $611 million, or 39 cents a share, but were ahead of the estimates of analysts.

In the year-earlier period, Corning earned $3.2 billion, or $2.01 a share, as the company record a large income tax benefit in the quarter.

Sales in the quarter fell to $1.4 billion, down from $1.69 billion a year earlier but were up 41% from first-quarter 2009 sales of $989 million.

Analysts surveyed by Thomson Reuters expected the glassmaker to report second-quarter earnings of 32 cents a share on revenue of $1.36 billion.

"The resurgent demand for LCD glass is propelling us to restore much of our previously idled production capacity as quickly as possible to meet our customers' needs," said James B. Flaws, vice chairman and chief financial officer, in a statement Monday.

The company said it has increased its forecast for LCD glass market volume in 2009 because of the "vitality" of LCD TV sales in the first half of the year. It now estimates that total yearly volume will be about 2.3 billion square feet, or about 15% growth from 2008.

Gross margin in the quarter was 41%, an increase over first-quarter gross margin of 27%.

Reported by Joseph Woelfel in New York