Wed, Apr. 29, 10:01 AM
- CLSA has downgraded Corning (GLW -3.1%) to Sell from Underperform a day after the company posted mixed Q1 results. The firm thinks LCD TV glass comps will be tougher in 2H15 - the division's revenue fell 13% Y/Y in Q1 thanks to a weak yen - and that high inventories and lower forex hedging gains will also act as headwinds.
- Meanwhile, the company's Dow Corning JV with Dow Chemical (DOW -0.6%) has posted its Q1 results: Revenue fell 11% Y/Y to $1.36B, and adjusted net income 8% to $101M.
- Weak sales of polysilicon (used in solar cell/module production) weighed on Dow Corning's results - the company blames "the timing of customers taking product under long-term contracts." Its silicones business "experienced volume growth in several of its highly specialized product lines, especially for materials sold in construction, healthcare and packaging applications," but also saw a 4.7% revenue growth impact from a strong dollar.
- The JV is less than 5 months removed from announcing it's shutting down a Clarksville, TN polysilicon plant, and taking a related $1.5B-$1.6B charge. On its CC (transcript), Corning stated it expects its share of Dow Corning's earnings will rise to $60M in Q2 (implies total adjusted net income of $120M) from $51M in Q1; silicones sales are expected to be flat Y/Y, and polysilicon sales lower.
Tue, Apr. 28, 9:54 AM
- Corning (GLW -1.2%) had a Q1 gross margin of 41%, up 20 bps Y/Y and better than expected in light of strong forex pressures. That, along with $500M in buybacks, help EPS beat estimates in spite of a revenue miss. A weak yen respectively had $165M and $137M impacts on Q1 sales and gross profits.
- The Optical Communications (fiber) division was a Q1 standout: Sales rose 18% Y/Y to $697M (guidance was for 10%+ growth). Strong North American fiber-to-the-home spending contributed, as did the purchase of fiber/copper interconnect maker TR Manufacturing. Mid-teen growth is expected for the division in Q2; the Samsung fiber division purchase will provide a lift.
- Display Technologies (LCD glass) revenue fell 13% Y/Y to $808M thanks to the yen's weakness; if not for forex, revenue would've risen 1% to $972M. LCD glass volumes rose by a high-teen % Y/Y, price declines (as expected) were moderate, and margins improved. Volumes are expected to fall be a low-single digit % Q/Q in Q2, with price declines even smaller than Q1's.
- Specialty Materials sales rose 4% Y/Y to $272M, thanks to a 20% increase in Gorilla Glass volume - the Galaxy S6 and its dual Gorilla Glass 4 panels helped. Sales are expected to drop by a mid-single digit % Y/Y in Q1, with advanced optics weakness offsetting Gorilla Glass growth. GG4 demand is expected to continue rising in 2H15.
- Environmental Technologies (emissions control) sales rose 3% to $282M. They're expected to fall by a mid-single digit % in Q2 due to a weak euro. Life Sciences sales fell 6% to $197M, and are expected to be down slightly in Q2.
- Q1 results, PR
Tue, Apr. 28, 7:16 AM
Mon, Apr. 27, 5:30 PM
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Tue, Jan. 27, 10:54 AM
- Following a strong Q4 highlighted by a December guidance hike, Corning (GLW +1.7%) expects LCD glass demand to be down slightly Q/Q in Q1, in-line with seasonality. Price declines are again expected to be moderate.
- Thanks to the Samsung deal and better-than-expected demand (lifted by enthusiasm for 4K TVs and larger sets), Corning's Display Technologies sales rose 69% Y/Y in Q4 to $1.1B. The segment's core earnings rose 26%.
- North American fiber-to-the-home buildouts fueled a 12% increase in Optical Communications sales to $676M, beating guidance for mid-single digit growth and contributing to the revenue beat. 10%+ growth is also expected in Q1.
- Specialty Materials sales (Gorilla Glass-driven) rose 12% to $319M, also better than expected. Corning reports seeing "strong consumer and manufacturer interest" in just-launched Gorilla Glass 4. ~10% Q1 growth is expected for the division.
- Environmental Technologies sales +5% to $238M, driven by demand for light and heavy-duty emissions products. Life Sciences sales +2% to $215M. Both divisions are expected to see roughly flat Y/Y sales in Q1.
- Gross margin rose to 41.4% from 39.3% a year earlier. Adjusting for one-time events, SG&A spend rose 22% to $380M, and R&D spend 24% to $209M. $183M was spent on buybacks.
- A weak yen lowered revenue by $198M. Corning plans to spend $1.3B-$1.4B in 2015 on capex, up from 2014's $1.1B.
- Shares are higher in spite of a 1.7% drop for the S&P.
- Q4 results, PR
Tue, Jan. 27, 7:25 AM
Mon, Jan. 26, 5:30 PM
Dec. 9, 2014, 10:16 AM
- In a PR issued ahead of a Barclays conference presentation, Corning (NYSE:GLW) says it now expects global LCD glass demand to rise by a low-single digit % Q/Q in Q4, better than prior guidance for a slight decline. Corning forecasts its glass growth to be in-line with market growth.
- Also, Q4 price declines are expected to be "even more moderate than anticipated at the beginning of the quarter.," and Corning expects 2015 price declines to smaller than 2014's due to strong LCD TV demand, a weak yen, and tightening supplies. Demand for both larger sets and 4K TVs is giving the industry a boost.
- Also: Corning says Samsung is using recently-launched Gorilla Glass 4 (offers improved damage resistance) in its high-end Galaxy Alpha phone.
- LCD driver IC vendor Himax (HIMX +2.1%) is following Corning higher on a morning the Nasdaq is down 1.1%. Large-panel drivers accounted for 28% of Himax's Q3 sales.
Oct. 28, 2014, 10:07 AM
- Corning (GLW +1.2%) is guiding for Specialty Materials core sales (includes Gorilla Glass) to "decrease sequentially by a low-to-mid teen digit percentage, reflecting the absence of new product launches that occurred in the third quarter."
- While the iPhone 6 is believed to use Gorilla Glass, soft tablet sales have weighed on Specialty Materials' performance. On the other hand, auto industry interest in Gorilla Glass (for solutions that can lower weight) is growing.
- LCD glass volume is expected to be flat to down slightly Q/Q, and LCD price declines more moderate. Full-year global retail glass demand is forecast to be up 10%, and demand for 4K TVs and larger sets is expected to boost 2015 sales.
- Optical Communications is expected to grow by a mid-single digit % Y/Y, and Environmental Technologies to grow by a high-single digit %. Life Sciences is expected to be flat.
- Q3 segment performance: Display Technologies sales (boosted by the Samsung deal) +62% Y/Y to $689M; Optical +7% to $650M; Environmental +25% to $282M (diesel emissions product demand); Specialty Materials +0.3% to $327M; Life Sciences -0.5% to $214M.
- Gross margin was 42.9%, +130 bps Q/Q and -70 bps Y/Y. SG&A spend -3% to $256M, R&D +8% to $199M. $200M was spent to repurchase 9.6M shares.
- Shares opened lower, but have quickly moved higher.
- Q3 results, PR
Oct. 28, 2014, 7:18 AM
Oct. 27, 2014, 5:30 PM
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Oct. 23, 2014, 5:01 PM
- Along with its Q3 results, Maxwell (NASDAQ:MXWL) has announced it's partnering with Corning (NYSE:GLW) to develop new ultracapacitor technologies.
- The companies declare "Maxwell's expertise in ultracapacitor cell design, manufacturing processes and market-leading capacitive energy storage product designs" will be paired with "Corning's expertise in high-performance materials, analytical capabilities and technology innovations." They aim to address tech challenges related to "energy density, lifetime, operating environment, form factor and cost."
- MXWL +14.9% AH thanks to the partnership, its Q3 beat, and its Q4 guidance: The company expects revenue to be up "as much as" 20%-25% Q/Q. That implies a range of $49.9M-$52M, well above a $44.4M consensus. Strong demand from the Chinese hybrid bus and wind energy markets are contributing to the growth.
Jul. 29, 2014, 9:29 AM
- Corning's (NYSE:GLW) Q2 gross margin was 41.6%, +60 bps Q/Q but -300 bps Y/Y and driving the quarter's EPS miss.
- Contributing to the margin pressure: specialty materials (Gorilla Glass) sales, which tend to carry higher margins, were roughly flat Y/Y at $298M. Gorilla Glass sales missed expectations due to soft retail demand for smartphones/tablets and "lower-than-expected sales for planned new models." That could be a reference to Apple's sapphire production ramp ahead of the iPhone 6 launch.
- On the other hand, LCD glass division sales (boosted by the Samsung deal) rose 62% Y/Y to $1.1B, with glass volumes growing by a low-teens % Q/Q (better than expected). Price declines were moderate, as expected.
- Optical communications (fiber) sales were also better than expected, rising 14% to $601M. Environmental Technologies grew 25% to $285M thanks to demand for diesel emission control products, and life sciences rose 2% to $223M.
- Q3 guidance: LCD glass volumes will rise by a mid-single digit % Q/Q, with price declines moderating further; optical will grow by a mid-single digit % Y/Y, environmental will grow 20%-25% Y/Y; specialty materials will grow 10% Q/Q; life sciences will be up slightly Y/Y.
- With revenue up 25% Y/Y, SG&A spend rose 20% Y/Y to $318M, and R&D spend 16% to $208M. $200M was spent on buybacks. Corning has cut its full-year capex guidance by $200M to $1.3B.
- Q2 results, PR
Jul. 29, 2014, 7:31 AM
Jul. 28, 2014, 5:30 PM
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Apr. 28, 2014, 7:55 AM
- Corning's (GLW) Q1 beat was fueled by better-than-expected numbers for its Optical Communications (fiber) and Environmental Technologies units. The former saw sales grow 26% Y/Y to $593M, better than Q4's 12% clip and beating guidance for mid-teens growth. The latter's sales rose 21% to $228M, better than Q4's 9% rate and above guidance for mid-single digit growth.
- Optical sales were boosted by North American demand, and Environmental sales by demand for heavy-duty diesel emissions products.
- Thanks to the Samsung deal, Display Technologies (LCD glass) sales rose 58% Y/Y to $1B. Adjusted volumes rose by a low-single digit % Y/Y, and (as expected) price declines were higher than in recent quarters.
- Specialty Materials (Gorilla Glass) sales rose slightly Y/Y to $261M, and Life Sciences sales rose slightly to $210M. Both units were expected to see flat growth.
- LCD glass volumes are expected to be up by a high-single digit % Q/Q in Q2, and price declines to be "significantly less" than Q1's.
- Guidance for other units: Mid-to-high single-digit Y/Y growth for Optical, low-to-mid teen Y/Y growth for Environmental, 20%-25% Q/Q growth for Specialty Materials (Gorilla Glass demand, end of inventory issues), Life Sciences consistent with a year ago.
- Gross margin rose 100 bps Q/A and fell 100 bps Y/Y to 41%. The Samsung deal led op. margin to fall 420 bps to 13.7%, but Corning says it's making "terrific progress" with integration efforts.
- Corning ended with Q1 with $5.6B in cash, and $3.7B in debt.
- Q1 results, PR
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Corning Inc is engaged in manufacturing of specialty glass and ceramics. The Company's segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.
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