Corning has announced a 20% increase in its display glass substrate prices across all markets. The hike is a response to increased production costs, driven by inflated raw material and energy prices. By passing these costs onto consumers, Corning aims to maintain its profitability.
Despite the price rise, the company predicts that the demand for glass products will rise in the latter half of the year, spurred on by a recovery in the display industry and improved market conditions in China. This recovery is also likely to be buoyed by seasonality factors.
Despite the ongoing semiconductor shortage and increased raw material costs, Corning has forecasted a 6-8% compound annual sales growth. The company plans to invest $10-$12 billion in research, development & engineering, capital, and mergers and acquisitions during this period. It also intends to provide $8-$10 billion to its shareholders, including an annual dividend per share increase of at least 10%. To achieve these goals, Corning anticipates an incremental $3-$4 billion in annual sales and an improvement in profitability by the end of 2023.
