Corning Sales Climb 8% in 2017
According to Corning, all five market-access platforms delivered key milestones in 2017, including major customer agreements and product wins, strategic acquisitions, and sales of new products in existing and emerging businesses.
Corning, Inc. recently announced its financial results for the fourth quarter and full year 2017. The company achieved $10.1 billion in sales (according to generally acceptable accounting principles, GAAP) in 2017, an increase of 8% compared to 2016; core sales were $10.5 billion, also an 8% increase. (In all segments except the Display Technologies segment, core net sales are consistent with GAAP net sales. Because a significant portion of sales and costs in the Display Technologies segment are denominated in Japanese yen and South Korean won, this segment’s net sales and costs are adjusted to remove the impact of translating yen and won into U.S. dollars.) For the 2017 fourth quarter, GAAP sales reached $2.6 billion, a 7% increase from the fourth quarter of 2016; core sales in the 2017 fourth quarter were $2.7 billion, also a 7% increase from the prior year’s quarter.
According to Corning, all five market-access platforms delivered key milestones in 2017, including major customer agreements and product wins, strategic acquisitions, and sales of new products in existing and emerging businesses. “Strong growth and strong investment made 2017 an outstanding year,” said Wendell P. Weeks, chairman, CEO and president. “We exited the year running at full capacity in several of our businesses and with committed customer demand that supports our current capacity-expansion initiatives. We expect to see the benefits of these initiatives in the second half of 2018 and beyond as production ramps. 2018 will be another year of strong growth and investment, consistent with our Strategy and Capital Allocation Framework. We feel great about our progress and prospects.”
Core sales in the Display Technologies segment reached $3.4 billion in 2017, and core earnings were $944 million. Volume was up mid-single-digit percentages for the year, in line with the company’s expectations. Pricing improved as anticipated, reaching single-digit-percentage declines year over year in both the third and fourth quarters of 2017. The segment’s core sales in the 2017 fourth quarter were $847 million, and core earnings were $221 million. In the fourth quarter, volume was up slightly sequentially, in line with the market.
For 2018, Corning expects LCD glass market growth to be in the mid-single-digit percentages, similar to 2017, as screen size growth continues. Corning expects its volume to grow faster than the market as the company supports the ramp-up of the world’s first Gen 10.5 fab. The improvements in LCD glass pricing are expected to continue in 2018, with year-over-year price declines expected to reach the mid-single-digit percentages.
The Optical Communications segment achieved 2017 sales of $3.5 billion, up 18%, with core earnings up 33%. Sales growth in both enterprise and carrier businesses, as well as contributions from acquisitions, drove the outstanding results. Sales in the fourth quarter increased 13% over the 2016 fourth quarter. Optical Communications sales in 2018 are expected to increase by about 10%, excluding any contribution from the pending acquisition of 3M’s Communications Markets Division.
In Environmental Technologies, 2017 sales, including the first sales of gas particulate filters, increased by 7% to $1.1 billion, driven by worldwide auto market growth and new business wins. Core earnings were $139 million, as capacity and engineering investments partially offset the benefits of sales growth. The segment’s sales in the fourth quarter grew 19% year over year, with core earnings up 33%. For 2018, Environmental Technologies sales are expected to increase by a high-single-digit percentage.
Sales for the Specialty Materials segment rose 25% in 2017, led by the increasing adoption of glass on the backs of devices. Fourth quarter sales were up 17% compared to the 2016 fourth quarter. The company expects year-over-year sales growth for Specialty Materials in 2018, with the rate and pace dependent on customer adoption of Corning’s innovations.
For additional details, visit www.corning.com.