Summary
Corning Incorporated (GLW) filed an 8-K on April 18, 2005, to provide updated guidance for its first quarter ended March 31, 2005. The company announced that it now expects its first-quarter sales to be between $1.04 billion and $1.05 billion, and earnings per share (EPS) to be between $0.16 and $0.17, before special items. These revised figures significantly exceed the company's previously issued guidance of $980 million to $1.03 billion in sales and $0.11 to $0.13 in EPS. The improved outlook is attributed to stronger-than-anticipated performance from its joint venture, Dow Corning Corporation, and robust demand for its hardware and equipment products. Additionally, Corning expects a lower-than-expected corporate tax rate to positively impact its results. The company also confirmed that volume and pricing for optical fiber and liquid crystal display glass are expected to be within prior guidance ranges.
Key Highlights
- 1Corning revised its Q1 2005 guidance upwards, exceeding previous expectations for both sales and EPS.
- 2Expected Q1 2005 sales range: $1.04 billion - $1.05 billion (previous guidance: $980 million - $1.03 billion).
- 3Expected Q1 2005 EPS range (before special items): $0.16 - $0.17 (previous guidance: $0.11 - $0.13).
- 4Key drivers for the improved outlook include strong performance from Dow Corning and higher demand for hardware and equipment.
- 5A lower-than-anticipated corporate tax rate is also expected to benefit Q1 results.
- 6Optical fiber and liquid crystal display glass volumes and pricing are anticipated to be within prior guidance.
- 7Corning plans to release its official Q1 results after market close on April 26, 2005, with a conference call scheduled for April 27, 2005.