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Corning Experience’s Weak 2nd half in Display Technologies
February 02, 2020

Corning reported fourth quarter sales were $2.9 billion, net income was $406 million and full year, sales up 2% to $11.7 billion, with net income was $1.6 billion. For the full year sales and profitability were down due to the challenges in Display and Optical Communications. Display fourth quarter sales were $795 million, down 11.6% Y/Y and net income was $180 million down 25% Y/Y. Q4 glass prices declined slightly sequentially and fourth quarter volume was up low-single digit sequentially. Display’s full year sales were $3.3 billion and net income was $786 million. The full year 2019 price decline was a low-single digit percentage. Display glass volume grew mid-single digits, while TV unit sales were down. The miss was explained by changing market and customer dynamics in the second half, as a supply chain correction in the Display industry was highlighted by capital spending reductions at two of our significant customers.  Despite reports of display capex reduction, they see indicators that the supply chain correction has ended and expect normal seasonality to resume with the majority of volume and growth in the second half. As a result, they plan to start production at their next Gen 10.5 plant.