Before revealing its view of the glass industry to Wall Street's best and brightest yesterday, Corning
According to the company's transcript, Weeks reiterated previous guidance on his firm's sales and earnings. Specifically, he predicted third-quarter sales between $1.525 billion and $1.575 billion, and per-share profits of $0.34 to $0.37. He mentioned that some of this is because of the yen-to-dollar exchange rates. If the current rate continues, Q3 earnings will be positively affected by about $.01 per share.
Also key to putting the earnings in context is the fact that Corning gives guidance in pro forma-speak: The numbers exclude effects of restructuring, impairment, and other charges; benefits to earnings; and in particular, charges or credits related to the value of the 25 million shares Corning plans to contribute to the Pittsburgh Corning Corporation reorganization plan, pursuant to its participation in the asbestos litigation settlement. Because Corning contributed "X number of shares," rather than "X number of dollars," to the settlement fund, whenever the value of those shares rises, this has the effect of increasing the amount of money Corning will be paying out in settlement of claims -- hurting GAAP earnings. Conversely, when Corning shares decline in value, Corning pays less under the settlement, boosting GAAP earnings.
Corning's biggest moneymaker these days is the ultra-thin glass it manufactures and sells to LCD panel makers such as Chi Mei, AU Optronics
What's foremost on everybody's mind is what Weeks had to say about "Corning's recent breakthrough optical fiber technology," which, if you buy into the industry buzz, will make it easier for Verizon