Corning’s Display and Specialty Materials Growth Report Another Strong Quarter
May 13, 2019
Corning’s Display & Specialty Materials had display sales 4.4% above analyst expectations, most likely due to a slightly faster ramp at BOE and display margins were 25.4%. Comments about the display and specialty products and markets:
Corning’s response to a reduction of smaller LCD substrate capacity is that they would ‘repurpose’ these facilities toward Gorilla Glass or automotive specialty products, which is what Corning did when it bought back Samsung’s share of their joint venture a few years ago. At that time not all of the JV capacity was being fully utilized, and the company converted some of that capacity to Gorilla Glass and other specialty product production. Panel producers push for bigger price reductions every quarter, but operating personnel know that paying a bit more to guarantee quality supply is far less expensive than a missed customer production deadline, which gives Corning the leverage to maintain their margins.