Corning Innovation To Drive Future Growth

Weeks also will tell investors that Corning continues to innovate its optical fiber and connectivity solutions to meet the ever-increasing bandwidth demand driven by consumer electronics applications. “Our new mobile access wireless solutions are assuring five-bar coverage, an ability to flex capacity allocation, and reduced installation time and cost.” At the same time, Corning continues improving optical connectivity with faster, lighter, smaller, and lower-energy-consumption device-to-device connectivity solutions for the home.

Finally, he plans to highlight an innovation that combines Corning’s expertise in biochemistry, specialty glass, and surface technology. “Corning is developing a glass that kills drug-resistant bacteria and viruses,” Weeks will explain. “The product is in the early stages, but it’s something we’re very excited about. This is an area that has a very real chance of becoming one of our exciting new growth opportunities.”

Path to $10 billion in sales

James B. Flaws, vice chairman and chief financial officer, will say, “As a company, we are approaching a lower level of profitability driven by LCD glass price declines. We expect these to moderate as glass capacity and demand come into balance. Our plan is to march up from this level with increased sales and profits, reaching $10 billion in sales in 2014.”

He plans to point out that while Corning LCD glass sales are likely to be flat through 2014, the business will remain highly profitable and continue to generate large amounts of cash. “We are confident we can maintain a healthy gross margin in the display business with a robust cost-reduction program, including bringing price declines in line with manufacturing costs and reduced capital expenses. Future glass-volume growth will come from an accelerated display-replacement cycle and advanced glass technologies, bringing thinner displays to the market,” he will remark.

“We now expect the Telecommunications, Specialty Materials, Environmental Technologies, and Life Sciences business segments to be the primary drivers of increased sales and profits going forward,” Flaws will add. Advances in the areas of fiber-to-the-home installations, enterprise network (data centers) solutions, optical fiber sales, and wireless applications, all are expected to contribute to Corning’s Telecommunications segment growth, which could see sales approaching $3 billion in a few years.

Corning’s Gorilla Glass sales, contained in the Specialty Materials segment, are expected to grow “materially” through 2014, led primarily by consumer electronic devices and potentially from industries outside this market, such as automotive, appliance, and architectural applications. Life Sciences sales are forecasted to nearly double to $1 billion as part of the company’s growth plan. And tighter global environmental emissions regulations will help drive Corning’s Environmental Technologies segment to $1.4 billion in sales by 2014. New businesses could contribute an additional $400 million to Corning’s path to $10 billion.

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