Core Sales Increase 16% for Corning in 2018 Third Quarter
Corning now expects sales to exceed $11.3 billion for the full year.
Corning, Inc.’s core sales reached $3 billion in the quarter of 2018, a 16% increase compared to the 2017 third quarter, with all of the company’s businesses contributing to the growth. Corning now expects sales to exceed $11.3 billion for the full year.
“We had an excellent quarter, with 16% sales growth and 28% EPS growth,” said Wendell P. Weeks, chairman, CEO and president. “These results demonstrate a step-change in our earnings power created by investments in innovation and capacity. Our annualized sales run rate now exceeds $12 billion, growth is accelerating, and our margins are expanding. Execution across the company is outstanding.”
According to Tony Tripeny, senior vice president and chief financial officer, “In the third quarter, all businesses delivered excellent results, with year-over-year sales and profit growth in each. We expect very strong performance again for the fourth quarter and full year, and now expect to exceed $11.3 billion in sales for 2018. Having passed an inflection point, we are gaining momentum and plan to build on that going forward. Putting it all together, we are now seeing our four-year, $10 billion investment drive growth and extend our leadership. We are also rewarding investors by returning more than $12.5 billion, which compounds the benefit of our future growth for long-term shareholders.”
Net sales for the Display Technologies segment in the third quarter of 2018 reached $852 million, increasing both sequentially and year over year. Corning reached the milestone of annual display glass price declines improving to a mid-single-digit percentage in the third quarter. The company expects the pricing improvement trend to continue in the fourth quarter and expects its full-year 2019 price declines to further improve from 2018.
As television screen size growth continues, Corning expects display glass market volume in the fourth quarter to grow by a low-single-digit percentage sequentially and full-year glass market volume growth of a mid-single-digit percentage. The company expects its display glass volume to grow faster than the market in the fourth quarter and the full year, driven by the Gen 10.5 ramp up.
Optical Communications’ 2018 third quarter net sales were up 22% compared to the prior year’s third quarter, exceeding $1 billion for the second consecutive quarter. Sales growth was driven by strong demand from both data center and carrier customers, as well as the acquisition of 3M’s Communication Markets Division.
Strong growth is expected to continue in the fourth quarter, as additional capacity ramps and the company supplies large projects underway at multiple customers in both the carrier and data center businesses. Fourth quarter sales are expected to be up by a low-single-digit percentage sequentially, resulting in year-over-year sales growth slightly better than the third quarter. For the full year, sales are expected to increase by a high-teens percentage over last year, with organic growth in the low teens and approximately $200 million in sales from the acquisition of 3M’s Communication Markets Division.
Third quarter 2018 net sales for Specialty Materials were $459 million, up 23% compared to the 2017 third quarter and ahead of company expectations, driven by strong pull for glass innovations. Fourth quarter sales are expected to be consistent with the fourth quarter of 2017, which was Specialty Materials’ highest sales quarter last year. For the full year, Specialty Materials sales are expected to grow by a mid-single-digit percentage compared to the prior year, after a strong year of 25% growth in 2017.
Environmental Technologies’ 2018 third quarter net sales were $331 million, up 19% compared to the 2017 third quarter. Results benefited from volume growth in all product categories, as well as strong performance in manufacturing operations.
This strong performance is expected to continue in the fourth quarter, with sales growth up by a high-single-digit percentage compared to the 2017 quarter. For the year, Environmental Technologies sales are expected to be up by a mid-teens percentage over last year.
Additional details are available at www.corning.com.