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Corning’s Q220 Earning Indicate Displays Flat Y/Y
August 02, 2020
Corning released Q220 earnings and display glass volumes grew ~2% to 3% primarily from Gen 10 customer’ BOE. Price declines were moderate, resulting in flat display revenue. Q320 guidance pegs display price declines at ~5% given the lower glass area requirements of Samsung Display, BOE’s Gen 10.5 fab capacity increases will have a greater influence on display sales in 3Q and 4Q.
Specialty materials (Gorilla Glass) sales were up 13% Y/Y, despite the negative growth in the smartphone segment, as inventory building at secondary suppliers, in anticipation of holiday smartphone sales, drove specialty material revenue higher than expected Glass used for tablets and laptops was strong in 2Q, reflecting the 28% growth in global notebook shipments. While no guidance was given, increased adoption of GG products is expected to be the driver for the remainder of the year.
Corning outlooked sales and profitability growth in 3Q, but they expressed concern on volatility. On a long-term basis the shift in the LCD business, the basis for display glass volume, from Korea to China happened more quickly than the company had predicted, primarily the rapid move by Samsung Display. Corning acknowledged the rapidly changing LCD environment, but they still expect improvement on a company-wide fundamental basis
August 02, 2020
Corning released Q220 earnings and display glass volumes grew ~2% to 3% primarily from Gen 10 customer’ BOE. Price declines were moderate, resulting in flat display revenue. Q320 guidance pegs display price declines at ~5% given the lower glass area requirements of Samsung Display, BOE’s Gen 10.5 fab capacity increases will have a greater influence on display sales in 3Q and 4Q.
Specialty materials (Gorilla Glass) sales were up 13% Y/Y, despite the negative growth in the smartphone segment, as inventory building at secondary suppliers, in anticipation of holiday smartphone sales, drove specialty material revenue higher than expected Glass used for tablets and laptops was strong in 2Q, reflecting the 28% growth in global notebook shipments. While no guidance was given, increased adoption of GG products is expected to be the driver for the remainder of the year.
Corning outlooked sales and profitability growth in 3Q, but they expressed concern on volatility. On a long-term basis the shift in the LCD business, the basis for display glass volume, from Korea to China happened more quickly than the company had predicted, primarily the rapid move by Samsung Display. Corning acknowledged the rapidly changing LCD environment, but they still expect improvement on a company-wide fundamental basis
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