Corning Sees Strong Start to 2019 with Double-Digit Sales Increase in First Quarter
Corning achieved GAAP sales of $2.8 billion and core sales of $2.9 billion in the first quarter of 2019, representing an increase of 12% and 13%, respectively, compared to the 2018 quarter.
Corning Inc. recently announced results for the quarter ended March 31, 2019. Corning achieved GAAP sales of $2.8 billion and core sales of $2.9 billion in the first quarter of 2019, representing an increase of 12% and 13%, respectively, compared to the 2018 quarter.
In the Display Technologies segment, first quarter net sales were $818 million, up 10%, and net income increased by 12% compared to the 2018 first quarter. Sequential glass price declines were moderate and the most favorable first quarter in well over a decade. Second quarter sequential price declines are expected to remain moderate. For the full year of 2019, price declines are expected to improve further to a mid-single-digit percentage and to be better than in 2018.
In Optical Communications, 2019 first quarter sales were $1.06 billion, up 20% over the prior year. Net income for the first quarter was up 30% year over year. Sales growth was driven by data center and carrier business, as well as sales from the recently acquired 3M Communication Markets Division.
The business remains on track to surpass its goal of $5 billion in 2020 sales, with continued growth beyond. For 2019, Optical Communications’ year-over-year sales growth is now expected to be up approximately 10%, revised from the company’s previous expectation of a low-teens percentage. This revision is the result of one major fiber-to-the-home customer shifting its deployment from homes passed to homes connected by one quarter earlier than expected.
The Environmental Technologies segment’s sales were $362 million in the first quarter of 2019. This represents a 12% increase over the 2018 quarter, driven by accelerating adoption of gasoline particulate filters and growth in heavy-duty diesel. Corning expects Environmental Technologies sales for the year to increase by 10% (or slightly more), year over year, higher than the company’s previous expectation of high-single digit growth, driven largely by acceleration in demand for Corning’s gasoline particulate filters.
Sales for Specialty Materials were $309 million for the 2019 quarter, up 11% year over year, driven by continued strong demand for the company’s portfolio of mobile consumer electronics glass solutions. Corning expects Specialty Materials to grow sales in 2019, with the level dependent upon the adoption rate of the company’s innovations.
“We built on our 2018 momentum by delivering double-digit sales and earnings growth in the first quarter,” said Wendell P. Weeks, chairman, CEO, and president. “Our investments in product development and manufacturing capacity delivered sales and profit growth in all our markets, and we’re confident that Corning is positioned to create additional value.
“In October 2015 we outlined a Strategic Framework to focus our portfolio, extend our market leadership, and increase shareholder returns. Having delivered another strong quarter, the benefits of our investments continue to be evident in our financial performance and we are within striking distance of fully delivering on the goals of this Framework.
“We expect to maintain momentum by continuing to invest in our focused and cohesive portfolio to drive growth. During the first quarter, progress on commercializing our innovations demonstrates clear leadership across our market-access platforms, as well as alignment with important industry trends.”
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