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Corning Turns Up TV Forecast

The glassmaker also reaffirms second-quarter guidance.

Corning

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raised its TV glass volume targets, taking an even brighter view of the liquid crystal display market.

The technology glassmaker now expects the 2006-to-2008 cumulative three-year growth rate for LCDs to be about 32%, which is up from a prior prediction of 30%. Corning says the increase is due to a higher market penetration or preference among consumers for LCD screens over other TV types.

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Corning's forecast calls for LCDs to represent 47% of all color TV sales next year. That is up from the original estimate of 45% for 2008. For 2007, Corning still expects LCDs to be about 35% of total 2007 TV sales.

The company also reaffirmed its guidance for the second quarter, calling for earnings in the range of 30 to 33 cents a share on sales of $1.4 billion to $1.45 billion. Analysts were looking for profit of 32 cents on $1.44 billion in revenue, according to Reuters Research.

Last month, Corning raised its LCD volume-growth forecast to between 35% and 40%, up from a previous target of 35%.

Corning shares rose 47 cents to $23.80 early Wednesday.