Corning, Inc. (GLW) Misses Q2 EPS by 1c

Corning, Inc. (NYSE: GLW) reported Q2 EPS of $0.37, $0.01 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $2.58 billion versus the consensus estimate of $2.53 billion.

Wendell P. Weeks, chairman, chief executive officer and president, said, "We had great results in the quarter that led to our seventh consecutive year-over-year quarterly core earnings improvement. We have positive momentum, and we are well-positioned to deliver on our 2014 business plan.

"We are particularly pleased with the improved performance in our Display Technologies segment. As we anticipated, LCD glass price declines were more moderate than they were last quarter. The integration of Corning Precision Materials Co., Ltd. into our global organization is proceeding very well, and we are benefiting from synergies attained through the consolidation."

Weeks also pointed out that Corning's Optical Communications segment maintained its outstanding sales performance with 14% year-over-year growth in the second quarter, and the Environmental Technologies segment had record sales in the quarter.

Second-Quarter Segment Results
Display Technologies segment core sales were $1.1 billion*, a 62% increase over core sales of $670 million a year ago. The sales improvement was driven by the consolidation of Corning Precision Materials. Core earnings for the quarter increased by 9% from the year-ago comparable period. LCD glass volume grew in the low teens percentage sequentially and was higher than anticipated. As the company expected, price declines were more moderate versus the first quarter.

Optical Communications segment sales were $686 million, a 14% increase from $601 million in quarter two of last year. The sales increase was stronger than anticipated, driven primarily by continued demand for Corning's fiber-to-the-home solutions in North America and Europe.

Environmental Technologies segment sales reached a record $285 million, a 25% increase over second-quarter sales for 2013. Strong demand for the company's heavy-duty diesel emissions control products continued in North America, China, and Europe.

Sales in Corning's Specialty Materials segment were $298 million, comparable with quarterly results a year ago. Corning^® Gorilla^® Glass sales were less than anticipated in the quarter, due to lower retail demand for smartphones and high-end tablets, and lower-than-expected sales for planned new models.

Corning's Life Sciences segment sales were $223 million, up 2% on a year-over-year quarterly basis. Core equity earnings from Dow Corning Corporation improved 17%* year over year.

Guidance:

In the third quarter, the company anticipates its LCD glass volume will be up by a mid-single digit percentage, sequentially. Glass price declines are expected to moderate further, returning to the rates experienced through most of 2013.

Optical Communications segment third-quarter sales are expected to increase by a mid-single digit percentage year over year, driven by continued strong sales of fiber-to-the-home solutions in North America and Europe.

For the Environmental Technologies segment, third-quarter year-over-year sales are anticipated to grow by 20% to 25%. Corning continues to benefit from strong demand for its heavy-duty diesel emissions control products in North America, China, and Europe.

Specialty Materials segment sales are expected to grow approximately 10% sequentially as demand for Gorilla Glass increases in the second half of the year. Life Sciences segment sales are expected to be up slightly on a year-over-year comparison.

For earnings history and earnings-related data on Corning, Inc. (GLW) click here.

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