Corning Announces First Quarter 2018 Results, Reaffirms Strong Outlook
Corning’s GAAP (generally accepted accounting principles) and core sales reached $2.5 billion, increasing 5% and 4%, respectively, over the 2017 first quarter.
Corning Inc. recently announced its results for the 2018 first quarter ended March 31, 2018. GAAP (generally accepted accounting principles) and core sales reached $2.5 billion, increasing 5% and 4%, respectively, over the 2017 first quarter. Core earnings rose 20% compared to the prior-year quarter, to $299 million.
“Our first-quarter results provide a strong start to 2018, and mark important progress in the continuing execution of our Strategy and Capital Allocation Framework,” said Wendell P. Weeks, chairman, CEO and president. “We continue to run at full capacity in several of our businesses and have multiple capacity-expansion initiatives underway to support committed customer demand. As production ramps, the benefits of these initiatives are expected to contribute to accelerating sales and profit growth in the second half of 2018.”
Display Technologies’ net sales in the 2018 first quarter were $745 million, a 5% decrease from 2017’s first quarter. LCD glass volume in the 2018 quarter declined sequentially by a low-single-digit percentage, in line with the market and normal seasonality.
The Display sequential price decline for the quarter was the most favorable since 2010. The improvements in LCD glass pricing are expected to continue throughout 2018, reaching an important milestone as annual price declines improve to a mid-single-digit percentage. For full-year 2018, Corning expects the LCD glass market volume growth to be in the mid-single-digit percentages as television screen size growth continues.
First quarter 2018 net sales for Optical Communications were up 8% to $886 million. Sales growth was driven by data center and carrier businesses. Optical Communications’ sales for the year are expected to increase by about 10% over last year, excluding any contribution from the pending acquisition of 3M’s Communications Markets Division.
Specialty Materials’ first quarter 2018 net sales declined 7% compared to the 2017 first quarter, to $278 million. The company expects year-over-year sales growth for Specialty Materials in 2018, with the rate dependent on customer adoption of Corning’s innovations, including the next generation of Corning® Gorilla® Glass, which remains on track for launch during the second half of 2018.
Environmental Technologies’ net sales for the first quarter of 2018 were up 17% to $322 million, compared with last year’s first quarter. Growth was driven by continued strength in the automotive market, ongoing improvements in the heavy-duty diesel market, and the ramp of the GPF business. For the year, Environmental Technologies sales are expected to increase by about 10% over last year.
In Life Sciences, first quarter 2018 net sales were up 10% to $232 million, as the business continued to outpace market growth. For 2018, sales are expected to grow by a mid-single-digit percentage.
According to Corning, it is investing across its market-access platforms to capture short- and long-term sales growth opportunities, including:
- Reaching $5 billion in sales by 2020 in Optical Communications
- Doubling sales over the next several years in Mobile Consumer Electronics
- Maintaining stable returns and winning new categories in Display
- Building a $500 million GPF business and creating a new glass business in Automotive
- Growing the base and creating a significant pharmaceutical packaging business in Life Sciences Vessels
“As we have communicated previously, Corning is in a phase of our Strategy and Capital Allocation Framework in which we are investing intensely for long-term secular growth,” said Tony Tripeny, senior vice president and chief financial officer. “Execution is on target, and several of our larger expansion projects are coming on line. We look forward to realizing significant sales and profitability benefits as this new capacity ramps during the second half of the year.”
For more information, visit www.corning.com.