10 Updates

Falling LCD Prices And Seasonal Declines May Hamper Corning's Sales

Jan 28 2014, 7:21am CST | by

Quick Take Corning’s fourth quarter earnings will face pressure from moderate LCD price declines and seasonal fluctuations in its telecommunications business. Gorilla Glass sales are expected to be...

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25 weeks ago

Falling LCD Prices And Seasonal Declines May Hamper Corning's Sales

Jan 28 2014, 7:21am CST | by

Quick Take

Corning is set to release its fourth quarter earnings results on January 28, 2014. In the previous quarter, Corning’s core sales grew 10% driven by growth in the telecommunications segment. The sales growth was also supported by recovery of its LCD glass business. Though LCD glass shipment volume grew, it was partially offset by moderate LCD price declines caused by excess inventory. In the fourth quarter, we expect the price declines to continue, resulting in a decline in revenue for Corning’s display business. Seasonal declines in the telecommunications segment will also put pressure on the company’s top line in the fourth quarter.

See our complete analysis of Corning here

Display Technologies Segment May Face Headwinds Due To LCD Price Declines

In the third quarter 2013, Corning’s display technologies segment was negatively impacted by falling LCD prices. However, growth in LCD glass shipment volumes, driven by demand for larger screen sizes for televisions, monitors and tablets, more than offset the negative impact of LCD price declines, which resulted in 7% growth in the segment’s core sales.

We expect that in the fourth quarter, LCD prices will continue to face moderate declines, similar to that in the third quarter. Although, unlike the third quarter, volume growth may be absent as the LCD industry continues to utilize the inventory buildup to feed demand in the fourth quarter. This will add to the negative impact of the price declines, resulting in a decrease in sales for Corning’s display technologies segment. However, the utilization of past inventory also means that we expect to see volume growth in 2014.

Telecommunications Segment Sales May Decline

Corning’s telecommunications segment showed strong growth in the third quarter 2013 with a 24% increase in core sales. However, Corning anticipates its results to fall in the fourth quarter due to normal seasonal declines in this business. The company said that this decline will also be effected by falling optical fiber sales in North America and China, and slower than anticipated construction of the National Broadband Network in Australia, which seeks to bring fiber-to-the-premises Internet connection to more than 90% of Australian homes.

Gorilla Glass’s Inventory Accretion Will Continue To Impact Sales

In the third quarter 2013, Corning’s specialty materials core sales, majority of which comes from one of Corning’s most popular product, Gorilla Glass, was down 10%. Sales of Gorilla Glass have been declining throughout the year due to the impact of excess inventory that built up in the supply chain in the fourth quarter of 2012. We expect the inventory build-up to continue to hamper Gorilla Glass sales in the fourth quarter as well. However, the impact is not expected to spill over into 2014. Gorilla Glass volumes are also expected to be down due to a difficult comparison with last year’s strong fourth quarter, when the inventory build occurred.

Corning believes that Gorilla Glass presents a long-term growth opportunity, driven by the emergence of touch-based notebooks and the already popular touch-screen mobiles. Also, Gorilla Glass may now have potential application in the flexible display market, enabled by Corning’s recently announced capability to manufacture Gorilla Glass in various shapes.

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Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat ...
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Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

"GOLDEN ASIA" Tokyo Premiere Press Conference
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbers. ...
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Update
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6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was reject ...
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Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin Huss ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the s ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in comp ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa M ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocatio ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

6 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billio ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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