Latest news with #CorningInc
The Star
08-05-2025
- Business
- The Star
Corning poised to invest US$500mil to expand presence in China
Beijing: US-based materials science company Corning Inc plans to invest another US$500mil in China this year, reinforcing its long-standing commitment to what it calls its most important overseas market, despite ongoing geopolitical and economic headwinds. 'This year marks the milestone of Corning being in China for 45 years, so we are going to expand our capability and also upgrade our technology,' Lin Chunmei, vice-president of Corning Inc, said during a recent exclusive interview with China Daily. 'Our strategy is very simple – just keep investing in our leading technology capabilities in China.' Since entering the Chinese market in the 1980s, Corning has invested more than US$9bil in the country. Today, it operates 21 manufacturing plants, a research and development centre and three technology centres, employing nearly 6,000 people across the country. Despite headwinds such as weaker global demand and trade disputes, Lin, who is also president and general manager of Corning Greater China, said she expects the company to achieve steady growth in China this year, voicing strong confidence and optimism about China's long-term prospects. 'China is no longer a country of just cheap labour. It has very sophisticated talent and a complete infrastructure,' Lin said. 'I think China now has much more power and strength to go through challenges than before.' While acknowledging the short-term challenges posed by trade frictions between the United States and China, Lin argued that economic logic would ultimately prevail. 'This kind of trade war is a lose-lose. China will get hurt, but the others will hurt too,' she said. 'At the end of the day, business is business. We need to be rational to make the most logical decisions that benefit both. Eventually, I think that will be the solution.' This year, China is putting a priority on fostering new high-quality productive forces and boosting technological innovation in its economic agenda. According to the Government Work Report, China will strive to develop new productive forces in light of local conditions and accelerate the development of a modernised industrial system. This will require the fostering of emerging industries and industries of the future, such as bio-manufacturing, quantum technology and embodied artificial intelligence (AI). 'Developing new productive forces will be key to boosting China's long-term economic growth potential, with AI – in which the United States and China are seeking to gain a competitive edge – set for intensified development,' said Li Chao, chief economist at Zheshang Securities. 'Future industries could be a particular focus and we anticipate new industrial plans to outline their growth trajectories.' Now, Corning is capitalising on key trends, including China's AI boom, data centre expansion and environmental policy upgrades – areas where the company's speciality glass, ceramics and expertise in optical physics are in high demand. 'AI is very important to us because customers need better connection,' Lin said. 'It has enhanced our optical communications business globally – in the US and also in China. We are actually upgrading our fibre capabilities, making more premium fibre in China, and we also have a plan to increase our capability to support the demand for data centres.' The company is also targeting growth in China's auto sector, the world's largest in terms of both sales and manufacturing capability. Corning provides advanced glass and emission control products for the country's increasingly tech-forward and environmentally-conscious vehicles. 'China-made cars are very cool, not only their engines but also user-friendly designs. 'Our auto glass really makes it very user-friendly and visually appealing. That's an investment area we continue to expand in,' Lin said. 'To us, 'grow with China' is not a slogan – it's what we have seen in the past,' Lin said. 'The next China is still China. I believe in it. China still has a lot of strong momentum and strengths to keep growing.' — China Daily/ANN
Yahoo
02-05-2025
- Business
- Yahoo
Corning increased solar Michigan facility investment to $1.5B
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Corning Inc. announced plans on Tuesday to invest another $600 million in its upcoming solar component facility in Richland Township, Michigan, aiming to accelerate advanced manufacturing operations. The additional funds will create 400 more jobs, bringing the total to 1,500 roles. The money builds on its February 2024 announcement through a $900 million investment. Production at the now $1.5 billion factory, which will be operated under Corning's subsidiary Solar Technology, is expected to come online in the second half of the year, Chairman and CEO Wendell Weeks said in an earnings call Tuesday. The solar industry experienced unprecedented growth in domestic capacity in 2024, accounting for 66% of the energy-generating segment space — which includes wind, natural gas and coal — in the United States, according to a U.S. solar market insight report from Wood Mackenzie and the Solar Energy Industries Association. The increase was due to investments in capacity that were driven by the Inflation Reduction Act, as well as more resilient supply chains and growing interest from utility and power companies, the report stated. Corning is experiencing increased demand for its solar products as well, which Weeks said makes the company's solar assets 'even more valuable.' Corning sold out its solar wafer capacity for the year, including from the Michigan facility under construction, EVP and CFO Edward Schlesinger said in the earnings call. Furthermore, the company sold 80% of its planned capacity for the next five years, Weeks said last month at the company's investor event. Corning also launched a new solar market access platform, which it expects to generate $2.5 billion in revenue by 2028, Weeks said last month at the company's investor event. The company expects to see a 'positive incremental impact' on its sales, profits and cash flow in the second half of the year, Schlesinger said in the earnings call. 'We are commercializing our new Made in America ingot and wafer products this year,' Schlesinger said. 'We have committed customers for 100% of our capacity available in 2025 and 80% of our capacity for the next five years.' While other companies and industries are adjusting their earnings forecasts for the year due to recent tariffs, the current levies are not significant for Corning due to stronger demand for their U.S.-made products, Weeks said. 'Our customers in optical communications, in solar, in mobile consumer electronics, and in life sciences are seeking to leverage our U.S. manufacturing footprint,' Weeks said. 'And we expect to close and potentially announce commercial agreements in the coming months.' Corning has taken further action to keep production in the U.S. and mitigate the impact of tariffs. Last month, the company announced a partnership with solar component manufacturers Suniva and Heliene to develop a U.S. supply chain, producing solar modules domestically made with polysilicon, wafers and cells. Corning will supply the wafers while Hemlock Semiconductor, its joint venture with Japan-based Shin-Etsu Handotai, will supply extremely pure polysilicon from its Hemlock, Michigan, facilities. Recommended Reading Corning, Suniva and Heliene form US solar supply chain Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Corning Inc (GLW) Q1 2025 Earnings Call Highlights: Strong Growth in Optical Communications and ...
Revenue: $3.7 billion, up 13% year over year. Earnings Per Share (EPS): $0.54, up 42% year over year. Operating Margin: Expanded by 250 basis points to 18%. Return on Invested Capital (ROIC): Increased by 300 basis points to 11.6%. Optical Communications Sales: $1.4 billion, up 46% year over year. Enterprise Sales: $705 million, up 106% year over year. Display Sales: $905 million, up 4% year over year. Specialty Materials Sales: $501 million, up 10% year over year. Automotive Sales: $440 million, down 10% year over year. Life Sciences Sales: $234 million, down 1% year over year. Free Cash Flow: Essentially break-even for the first quarter. Capital Expenditure (CapEx): Expected to be approximately $1.3 billion for the year. Share Buybacks: $100 million invested in share repurchases in the first quarter. Warning! GuruFocus has detected 6 Warning Signs with GLW. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Corning Inc (NYSE:GLW) delivered outstanding first-quarter results, exceeding guidance with a 13% year-over-year sales growth to $3.7 billion. The company expanded its operating margin by 250 basis points year over year to 18%, showcasing improved profitability. Corning Inc (NYSE:GLW) is confident in its ability to deliver its Springboard plan, aiming to add more than $4 billion in annualized sales and achieve a 20% operating margin by the end of 2026. The company is experiencing strong demand for its US-made innovations, particularly in optical communications, solar, and mobile consumer electronics. Corning Inc (NYSE:GLW) has committed customers for 100% of its solar capacity available in 2025 and 80% for the next five years, indicating strong future demand. The financial impact of existing tariffs, primarily between the US and China, is estimated to be $0.01 to $0.02 per quarter, which could affect profitability. Corning Inc (NYSE:GLW) faces temporarily higher costs associated with ramping up production for new products in optical communications and solar, impacting short-term earnings. The automotive segment experienced a 10% year-over-year decline in sales, primarily due to softness in European markets and the North America Class 8 market. The life sciences segment saw a slight decline in sales, down 1% year over year, indicating challenges in this area. Despite strong demand, the company faces potential risks from macroeconomic downturns, which could impact its growth trajectory. Q: Can you discuss Corning's pricing power in uncertain markets, particularly in solar, auto, and optical sectors? A: Wendell Weeks, CEO, explained that Corning has successfully passed cost increases to customers, especially post-pandemic. In solar, increased demand for US-sourced products has improved pricing potential. In optical, unique products drive growth, and Corning's competitive moat helps mitigate tariff impacts. The automotive sector has minimal tariff exposure, but Corning's customer relationships are strong enough to manage any impacts. Q: Your CapEx outlook remains at $1.3 billion despite temporary capacity ramp costs in optical and solar. Is this an OpEx ramp or a demand pull-forward? A: Edward Schlesinger, CFO, clarified that the ramp involves bringing on fixed costs, such as adding jobs in solar, which will dissipate as production scales. The optical ramp doesn't require significant CapEx. The current CapEx guide supports the Springboard plan's $6 billion and $4 billion growth targets. Q: What is the visibility of Gen AI orders amid concerns about data center spending pullbacks? A: Wendell Weeks, CEO, stated that recent dialogues with hyperscaler customers reinforce growth estimates. While individual customer plans may vary, overall demand remains strong, with customers seeking more of Corning's new products and leveraging its US manufacturing footprint. Q: Is the optical segment supply-constrained, and is there an opportunity to strengthen Corning's position in this market? A: Wendell Weeks, CEO, acknowledged strategic opportunities, especially with next-gen products. The rising profitability in the optical segment reflects actions taken to leverage strategic centrality, and future innovations could further improve margins. Q: How are customer conversations evolving post-Liberation Day tariffs, and how flexible is the solar ramp plan in a downturn? A: Wendell Weeks, CEO, noted increasing demand for US manufacturing platforms, with ongoing dialogues potentially leading to significant agreements. Edward Schlesinger, CFO, added that solar demand is somewhat insulated from macroeconomic factors, with long-term supply agreements securing capacity. Q: What are you hearing from panel customers regarding end-market demand, particularly for TVs? A: Edward Schlesinger, CFO, indicated that TV units are expected to remain flat, with growth driven by increasing screen sizes. China's stimulus has impacted demand, but overall expectations remain unchanged. Q: Why not be more aggressive with share buybacks given strong free cash flow and execution? A: Edward Schlesinger, CFO, emphasized maintaining a strong balance sheet while continuing share buybacks. Corning started buybacks in Q2 2024 and plans to continue, using it as the primary vehicle for returning cash to shareholders. Q: How does Corning manage potential customer production shifts from China to India? A: Wendell Weeks, CEO, explained that Corning has prepared for such shifts by establishing production channels in India and other regions, ensuring they can supply customers regardless of location changes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Epoch Times
29-04-2025
- Business
- Epoch Times
Corning Reports Strong Sales, Expands Domestic Manufacturing Capacity
U.S. materials giant Corning Inc. reported first-quarter 2025 sales and earnings that rose above expectations, driven by strong demand for generative artificial intelligence (AI). It also sees strong demand for U.S.-made solar products. Its shares rose in pre-market trade. On the morning of April 29, the upstate New York-based company The core operating margin expanded by 250 basis points year over year, to 18 percent. In Optical Communications, enterprise business sales climbed 106 percent due to continued strong demand for new products related to generative AI. Meanwhile, Corning is expanding its domestic manufacturing capacity to meet the strong demand for U.S.-made solar products. In early March, Corning, together with Suniva and Heliene, Related Stories 4/25/2025 4/22/2025 The company expects sales growth to continue in the second quarter, with core sales reaching $3.85 billion and core earnings per share growing faster than sales, ranging from $0.55 to $0.59. Management credited Corning's robust performance to its Springboard 'We're well positioned to maintain momentum despite a dynamic external environment because our growth is underpinned by powerful secular trends that are underway today,' said Wendell P. Weeks, the company's chairman and CEO. 'For example, we're seeing remarkable customer response to both our innovations for Gen AI data centers and our U.S.-made solar products, and we are accelerating our production ramps for both.' As of 12:50 p.m. EST on April 29, Corning's Corning has long been a serial innovator, surviving scores of recessions and depressions by mastering the art of 'creative destruction'—the shedding of mature products and businesses, and redirecting resources to new companies that develop products for emerging, fast-growing markets. Over its 174-year history, the company has resurrected itself several times by leveraging and combining core capabilities—the processing of glass substances—to develop scores of blockbuster products. This strategy has helped the company reduce innovation costs while creating higher and more sustainable competitive 'moats.' Corning's blockbuster products have included the glass for Edison's electric lamp, traditional TV tubes, heat-resistant glass for missiles and kitchenware, fiber-optic cables that power the Internet, and glass for flat-panel TVs. Some of Corning's products have created an entirely new market category, such as flat glass that changes the shape and appearance of TVs and computers. Others are required by government regulations, such as the catalytic converter system and ceramic substrate, which help neutralize the toxic mix of gaseous pollutants, including hydrocarbons, nitrogen oxides, and carbon monoxide. More recently, Corning Gorilla Glass Ceramic significantly improves drop performance on rough surfaces compared to competitive aluminosilicate glasses. It makes the screens of mobile devices such as iPhones almost unscratchable and more than tough enough to handle daily wear and tear. In March, Corning 'With GlassWorks AI, Corning is drawing on its world-leading expertise in materials science to create breakthrough products that expand the possibilities of generative AI for our customers, both inside and outside the data center,' said Sean Kelly, vice president and business director for Corning's Data Center Business Unit. 'Our new Contour Flow cable is a great example of our innovations—helping data centers connect their city-to-city networks quickly and cost-effectively, delivering future-ready optical performance without the need for expensive infrastructure buildouts.'
Yahoo
31-03-2025
- Business
- Yahoo
Corning (GLW) Revolutionizes Data Centers with GlassWorks AI Cable Solutions!
We recently published a list of . In this article, we are going to take a look at where Corning Inc. (NYSE:GLW) stands against other top AI ratings and news updates on Wall Street's radar. Despite AI's potential to transform our lives for the better, security threats associated with the technology continue to make headlines. North Korea's Kim Jong Un oversaw tests of newly developed AI-powered suicide drones and called for increased production. Kim Jong Un had reportedly said that unmanned control and AI capability should be prioritized in modern arms development. Elsewhere, Alabama Governor Kay Ivey banned Chinese AI tools over data security concerns. 'When it comes to the threat posed by the Chinese government, Alabama takes no chances. Our citizens' information must be protected in the strongest possible ways, which is why we are not only putting a ban on these two Chinese AI companies within our state government but also safeguarding our state's IT infrastructure from any foreign country of concern,' she said. Bill Gates also recently reiterated concerns about AI replacing most jobs. He believes the rate of advancements in AI could mean that the technology could replace many professions, including doctors and teachers. 'It's very profound and even a little bit scary — because it's happening very quickly, and there is no upper bound,' Gates said in a recent interview. However, he noted that certain types of jobs will likely never be replaced by AI. He said last year that he remains optimistic about the overall benefits of AI, like 'breakthrough treatments for deadly diseases, innovative solutions for climate change, and high-quality education for everyone.' We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of the number of hedge funds that hold stakes in them, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A technician wearing protective glasses installing optical fibers and cables. Corning Inc. (NYSE:GLW) is an innovator in materials science. It applies its expertise in glass science, ceramic science, and optical physics, combined with engineering capabilities, to design diverse products for industries such as optical communications, mobile consumer electronics, automotive, solar, semiconductors, and life sciences. On March 27th, Corning Inc. (NYSE:GLW) announced the launch of Corning GlassWorks AI solutions, which it defines as a 'one-stop shop' of personalized data center products around cable and connectivity solutions to help operators manufacture the dense fiber infrastructure required for GenAI. GlassWorks AI is designed to address the scalability and density-related challenges of data center operators as AI infrastructure requirements continue to surge. The company will showcase its latest innovation at the 2025 Optical Fiber Communication Conference and Exposition (OFC) between April 1st and 3rd. 'With GlassWorks AI, Corning is drawing on its world-leading expertise in materials science to create breakthrough products that expand the possibilities of generative AI for our customers, both inside and outside the data center. Our new Contour Flow cable is a great example of our innovations – helping data centers connect their city-to-city networks quickly and cost effectively, delivering future-ready optical performance without the need for expensive infrastructure buildouts.' Overall, GLW ranks 4th on our list of top AI ratings and news updates on Wall Street's radar. While we acknowledge the potential of GLW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GLW but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
