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Corning says no slowdown in LCD glass market

Michael McManus, DIGITIMES, Taipei [Wednesday 30 April 2008]


Despite recessionary fears in the US market over the past six months, Corning reported strong first quarter results for its displays business, and the LCD glass maker expects LCD glass market volumes to grow toward the upper end of its 25-30% estimate for 2008.

The company stated that demand for LCD glass was strong throughout the first quarter, with both its wholly owned business and Samsung Corning Precision (SCP) running at full capacity during the quarter. Corning's Display Technologies' glass volume increased 2% sequentially and 50% on year, while volumes at its joint venture Samsung Corning Precision Glass (SCP) were flat sequentially but up 46% on year.

In addition, the company pointed out that LCD panel makers ran at full capacity in the first quarter and inventory levels were healthy in the industry, with Corning noting that inventory levels at its customers were lower in the quarter than they were during the same period in the previous two years.

In the second quarter, combined LCD glass volumes for Corning's wholly owned business and SCP is expected to increase 6-9% sequentially, with the wholly owned business up 2-5% and SCP up 8-13%. Combined shipments are expected to grow 30-34% on year, the company noted.

Given the strength of LCD TV demand in the first quarter and based on its outlook for the remainder of the year, Corning now expect the global LCD glass market to grow at the upper end of the 25- 30% forecast range provided earlier this year, Wendell P. Weeks, chairman and CEO of Corning stated.

In addition, amid strong demand for LCD products, the company has increased its capital spending for its displays business to US$1.2-1.4 billion, up from US$800 million to US$1 billion budgeted previously.