Corning board OKs up to $1.5B in share buybacks
Thursday, October 6, 2011
CORNING, N.Y. (AP) — Corning Inc. said Wednesday that its board of directors has approved a plan to repurchase up to $1.5 billion of the specialty glass maker’s shares and increased the company’s quarterly dividend by 50 percent.
The company’s fourth-quarter dividend will rise to 7.5 cents, up from 5 cents, and will be paid on Dec. 16 to shareholders of record on Nov. 16.
Corning expects to begin the share buyback plan during the fourth quarter. The plan authorization expires at the end of 2013.
Meanwhile, the company noted that it expects the display industry supply chain sector to remain cautious, due to the uncertainty over the global economy.
James Flaws, vice chairman and chief financial officer, noted that the company’s display business is experiencing significant supply chain correction, as well as some loss of market share, primarily in Korea. As a result, the company expects earnings from stakes it holds in Samsung Corning and Dow Corning Corp. will be at least 30 percent lower in the third quarter than in the second quarter.
It also anticipates that display glass volume may continue to be weak in the short term, which could increase pressure on the company to lower prices.
Corning also said its telecommunications, environmental technologies and life sciences segments remained strong during the third quarter.
The company is scheduled to report its third-quarter financial results on Oct. 26.
Shares rose 40 cents, or 3.2 percent, to $13 in aftermarket trading. The stock ended the regular session up 70 cents, or 5.9 percent, at $12.60.
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