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Lower Joint Venture Income Hit Corning In 3Q

Glass maker Corning said Wednesday that its net income fell 23 percent in the third quarter on lower earnings from its joint venture with Samsung, which Corning is buying out.  The company gave a disappointing forecast for the fourth quarter, and shares slipped.

CORNING, N.Y. (AP) — Glass maker Corning said Wednesday that its net income fell 23 percent in the third quarter on lower earnings from its joint venture with Samsung, which Corning is buying out.

The company gave a disappointing forecast for the fourth quarter, and shares slipped.

Corning, which makes glass for TVs, smartphones, tablets and other uses, said earlier this month that it would acquire Samsung Electronics' 43 percent stake in Samsung Corning Precision Materials, an LCD glass joint venture in Korea. It will buy out other minority shareholders as well.

The company said income from Samsung Corning Precision Materials declined as LCD glass prices slip.

Corning also gave a weak fourth-quarter forecast, pointing to optical fiber sales volumes declines in North America and China. It also said construction of Australia's National Broadband Network is progressing at a slower-than-expected pace. It said results in the fourth quarter will be lower than in the third quarter — analysts expected earnings and sales to be unchanged from the third quarter.

Corning Inc.'s net income fell to $408 million, or 28 cents per share, from $533 million, or 36 cents per share. Excluding special items like fluctuations in the Japanese yen and equity earnings from the polysilicon business of Dow Corning Corp., its joint venture with Dow Chemical Co., its revenue rose 10 percent, to $2.11 billion from $1.92 billion.

If one-time items are excluded, earnings came to 33 cents per share.

Analysts expected net income of 32 cents per share and adjusted revenue of $2.09 billion, according to FactSet.

Shares of the Corning, N.Y.-based company fell 35 cents, or 2 percent, to $17.16 in morning trading.