Strong worldwide consumer demand for LCD TVs, notebook computers, and myriad handheld personal communication devices should drive increased sales and earnings for Corning in 2010, according to the company.
Global consumer demand for LCD TVs and PCs will be the primary driver behind the company's anticipated 14-22% increase in total LCD glass demand in 2010. Total glass volume for the year could reach three billion square feet. In 2009, the worldwide glass market was 2.45 billion square feet. "The high end of our estimation represents one of the largest volume increases in the history of LCD glass manufacturing," John L Geniviva, division VP and director of strategy and marketing, Display Technologies, said.
In 2009, worldwide TV sales increased by only 1%, while LCD TV sales increased by 35%. Corning expects that 171 million LCD TVs will be sold this year, representing a 21% on year growth. The absolute growth of LCD TVs in North America will slow as market penetration in the US reaches 90% in 2010, and China will become the world leader in total TV sales this year. "We expect the China market to absorb about 37 million LCD TVs this year, a 32% on year increase," Geniviva noted. Corning also expects the PC market (notebooks, netbooks and monitors) to grow by about 13% this year.
"Long term, we believe that technology advancements for LCD TVs, shortened replacement cycles, and attractive growth opportunities in developing countries will keep the overall market growth rate above historical levels," Geniviva concluded.
James B Flaws, vice chairman and CFO said, "We believe all our business segments have the potential for growth. The 2010 glass market will be larger than last year, the auto industry will grow, and we have significant demand for our Gorilla glass product." He pointed out that equity earnings will be significant for Corning in 2010. "Dow Corning Corporation should see sales increase by more than 10% this year, with strong performance in both its silicone business and Hemlock Semiconductors."
Total capital spending for Corning is planned to be in the US$600-700 million range but could climb if adjacent opportunities are successful. Corning's tax rate is expected to be about 10%, the company said.
Article translated by Yvonne Yu
