Corning Q1’08: Glass Volume Up 50% Y/Y

On April 29, 2008, Corning (GLW) announced Q1’08 results. Overall sales were up 24% Y/Y to US$1.62 billion. What I’m interested in is the Display Technologies division: Glass volume increased 2% Q/Q and 50% Y/Y. Part of the Display Technologies division is Samsung Corning Precision Glass (SCP) where volume was flat Q/Q but up 46% Y/Y.

Q1’08 Results
• Glass volume (all): Up 2% Q/Q and 50% Y/Y
• Glass volume (SCP): Flat Q/Q and 46% Y/Y
• Glass sales (all): Up 7% Q/Q and 58% Y/Y to US$829 million

As I understand it, Corning’s glass sales are in Japanese Yen. With the weakening US dollar, Corning’s sales and earnings benefited.

The company has a rosy Q2’08: LCD glass volume is expected to increase 6% to 9% Q/Q. SCP is forecasted to increase 8% to 13% Q/Q while other glass facilities are expected to increase 2% to 5%. SCP supplies most of its glass to Samsung and based on this forecast it seems Samsung’s appetite for LCD glass could be growing quickly in Q2’08.

Q2’08 Expectations
• Glass volume (all): Up 6% – 9% Q/Q
• Glass volume (wholly owned): Up 2% – 5% Q/Q
• Glass volume (SCP): Up 8% – 13% Q/Q
• Price: Moderate price declines in Q2’08. Expect to benefit from weak dollar.

2008 Expectations
• Capital spending: US$1.8 to $2.0 billion, primarily accelerating LCD capacity.
• Growing demand for Gorilla glass.
• High precious metals prices.

According to Wendell Weeks, Chairman and CEO, Corning’s LCD glass facilities are operating at full capacity. He also mentioned that global LCD TV is continuing to grow and forecasted that the global LCD glass market will grow 25% to 30% for 2008.

Source: Corning

[tags]Corning, Glass Substrate, LCD Glass, LCD Glass Supplier[/tags]