CORNING, N.Y. - Shares of Corning Inc. surged eight per cent Tuesday after the world's largest maker of liquid-crystal-display glass for flat-screen televisions upped its profit outlook for the fourth quarter.
Citing strong sales and orders over the last six weeks, the industrial materials company expects to earn 38 cents to 40 cents a share in the October-to-December period, up from a previous forecast of 36 cents to 38 cents. The projections exclude restructuring, impairment and other one-time charges.
Sales will range from $1.53 billion to $1.56 billion, compared with a previous estimate of $1.50 billion to $1.55 billion, it said.
"Our display business is running at full capacity and manufacturing performance in October was outstanding," said Corning's president and chief operating officer, Peter Volanakis.
Analysts surveyed by Thomson Financial forecast fourth-quarter earnings of 37 cents on sales of $1.55 billion.
Shares rose $1.71 to $23.11 in afternoon trading.
For the full year, Corning expects sales growth of about 12 per cent and earnings per share growth of at least 23 per cent. That translates into earnings of at least $1.38 a share on sales of about $5.79 billion.
In 2006, the company posted adjusted earnings of $1.12 per share on sales of $5.17 billion.
Cowen & Co. analyst John Anthony maintained a neutral rating on the stock.
"We are encouraged with Corning's outlook and we note that its commentary is largely in-line with October results of the liquid crystal display panel makers," Anthony said in a note to investors.
"Having said this, it is unlikely that Corning's improved outlook is reflective of consumer demand trends, but rather reflective of set-top makers increasing inventory levels in anticipation of the holiday shopping season."
Also Tuesday, Corning broke ground on a planned six-year, $300 million expansion of its Sullivan Park research hub, where about 1,500 of its 25,000 employees are based.
The expansion, first announced in April, "represents an important milestone in Corning Inc.'s continuing commitment to excellence in research and development," Gov. Eliot Spitzer said.
"These are the type of key projects that will continue to drive the revival of the upstate economy."
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