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BREAKFAST WITH THE FOOL
Corning Turns In Strong Q2

By Dave Marino-Nachison (TMF Braden)
July 17, 2000

Telecommunications equipment and information displays maker Corning (NYSE: GLW) this morning said second-quarter earnings grew thanks to strong performance from its high-tech fiber-optic cable and liquid crystal display operations. Pro forma earnings were $0.94 per share, up from $0.52 last year and handily beating First Call's $0.80 consensus estimate.

Year-over-year revenues rose 57% to $1.78 billion as the company's photonic technologies department reported nearly a doubling of sales, and flat-panel glass display revenues jumped more than 70%.

"Clearly, this is a blockbuster quarter for Corning," said Chairman and CEO Roger Ackerman. The company raised its full-year pro forma EPS guidance to between $3.15 and $3.25 per share (excluding amortization of purchased intangibles and goodwill, purchased in-process research and development, onetime acquisition costs, discontinued operations, and other nonrecurring items).

Wall Street's current full-year estimate is $2.92. Last year the company turned in EPS of $2.00.

Warren Gump took an in-depth look at Corning and its evolution into an in-demand high-tech leader in a Fool on the Hill column last week.

News to Go

Cereal leader General Mills (NYSE: GIS) agreed to buy Diageo's (NYSE: DEO) Pillsbury food unit for $10.5 billion in stock and assumed debt. The deal should help boost General Mills' profile with grocers as its competitors continue to grow through acquisition. Diageo, meanwhile, is also planning a spin-off of its Burger King chain and is one step closer to becoming a beverage pure-play.

Mobile electronics and transportation components company Delphi Automotive Systems (NYSE: DPH) said Q2 EPS was $0.75, in line with market estimates. The company cited cost improvements that helped net margins as the prime generator of approximately 9% year-over-year EPS growth. The company is "on track" to meet full-year financial targets, Delphi said.

Supermarket operator Great Atlantic and Pacific Tea Co. (NYSE: GAP) said COO Michael Larkin left the company. Its operating unit heads will report to CEO Christian Haub while the company searches for a replacement.

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