JANUARY 25, 2011, 10:47 A.M. ET.

CORRECT: Corning 4Q Profit Rises 41% As Demand Improves
7:51 a.m. EST, misstated prior-year adjusted earnings. The correct version follows.)

DOW JONES NEWSWIRES

Corning Inc.'s (GLW) fourth-quarter profit rose 41% as demand improved and the company recouped $324 million related to claims from 2009 earthquake that disrupted some operations in Asia.

Adjusted earnings missed analysts' expectations, though revenue topped estimates.

The maker of glass used in LCD screens on TVs, computer monitors and other electronics has enjoyed soaring profit in recent quarters as demand has risen. But demand slowed in the third quarter, with the company cutting its outlook for glass volume as panel makers pulled back production to deal with excess inventory.

The company said in November it expected demand in the world-wide glass market to be flat to down slightly in the fourth quarter. Glass pricing declining in the mid-single digits as expected.

The company's scratch-resistant Gorilla Glass, used in smartphone and tablet computer screens, is positioned as the next growth driver.

Corning posted a profit of $1.04 billion, or 66 cents a share, up from $740 million, or 47 cents a share, a year earlier. Excluding the gain and other items, earnings rose to 46 cents from 44 cents. Revenue increased 15% to $1.77 billion.

Analysts polled by Thomson Reuters most recently earnings of 47 cents on $1.61 billion in revenue.

Gross margin widened to 43.5% from 42.2%.

Display technology sales, its largest segment on that basis, improved 5% as volume rose 10%.

Sales at its smaller specialty materials soared 79% from a year earlier on strong sales of its Gorilla glass and strong performance in advanced optics. Its environmental technology sales rose 28%. Telecommunications sales increased 9% amid a milder than expected seasonal downturn.

Shares closed Monday at $19.64 and were inactive premarket.

-By Tess Stynes and Lee Roberts, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com

http://online.wsj.com/article/BT-CO-201 ... 10955.html