Corning beats on strong demand for Gorilla Glass, fiber cable

Reuters

* Q3 adj EPS $0.33 vs est $0.32

* Q3 rev $2.1 bln vs est $2.09 bln

* Sees Q4 telecom unit sales down slightly year-over-year

* Shares up 1 pct

Oct 30 (Reuters) - Corning Inc reportedbetter-than-expected quarterly results, helped by strong demandfor its scratch-resistant Gorilla Glass and fiber opticproducts.

Sales in the company's telecommunications unit, which makesoptical fiber cable, rose 24 percent to $650 million in thethird quarter, accounting for nearly a third of total sales.

The company, however, said it expects a larger-than-usualseasonal decline in optical fiber sales in the current quarter,mainly in North America and China.

"We anticipate that fourth-quarter results will besequentially lower ... ," Chief Financial Officer James Flawssaid in a statement on Wednesday.

Flaws also said construction of Australia's NationalBroadband Network had been slower than expected.

The Corning, New York-based company's shares were up lessthan 1 percent at $17.64 in early trading on Wednesday.

Sales in its specialty materials unit rose 8 percentsequentially to $326 million due to higher demand for GorillaGlass, which is used in Apple Inc's iPhones and iPadsand Samsung Electronics Co Ltd's Galaxy devices.

Sales in the technologies segment, which makes LCD panelsfor Sony Corp, LG and Lenovo Group, rose 7 to$689 million.

Corning said last week it would buy out the Samsung group'sstake in their joint venture that makes glass for liquid crystaldisplays (LCD).

A Samsung subsidiary will take a 7.4 percent share inCorning if it converts the preferred shares it received as partof the deal.

Corning said the transaction, expected to close in the firstquarter of 2014, would add about $350 million in annual profitbefore special items.

The company's third-quarter net income fell to $408 million,or 28 cents per share, from $533 million, or 36 cents per share,a year earlier.

On an adjusted basis, the company earned 33 cents a share.

Core net sales rose to $2.11 billion from $1.92 billion.

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