Corning reported steady sales but higher profit margins in the third quarter of 2023. The company’s pricing actions in its Display Technologies business unit have been a big contributor to its profitability, but the company is also expecting a slowdown in orders in the fourth quarter. So, Corning is touting that it will have achieved double-digit price increases in the second half of this year for the display business.
| Financials ($ millions) | Q3’23 | Q3’22 | First 9 Months 2023 | First 9 Months 2022 |
|---|---|---|---|---|
| Net Sales | $3,173 | $3,488 | $9,594 | $10,783 |
| Cost of Sales | $2,169 | $2,426 | $6,574 | $7,192 |
| Gross Margin | $1,004 | $1,062 | $3,020 | $3,591 |
| Operating Expenses | $738 | $739 | $2,116 | $2,147 |
| Operating Income | $236 | $292 | $812 | $1,352 |
| Net Income | $182 | $226 | $676 | $1,413 |
The glass and ceramics manufacturer said its third quarter sales held flat at $3.17 billion compared to the previous quarter. However, its core gross margin rose 0.8% sequentially to 37%, driven primarily by its display technologies pricing.
In reporting the divisional breakdown of financials, like those below for the Display Technologies and Specialty Materials divisions, the company uses a a constant-currency method which, management claims, allows them to understand the underlying performance of these divisions without accounting for the the fluctuations in currency rates that have occurred and that are reflected in the GAAP financials above. So, while the GAAP net income is $236 million, above, the one with constant-currency calculations would be $577 which includes other stuff besides the addition of $209 million in constant-currency adjusted operating margins.
| Display Technologies | Q3’23 | Q2’23 | % Change QoQ | Q3’22 | % Change YoY |
|---|---|---|---|---|---|
| Net Sales | $972M | $928M | 5% | $686M | 42% |
| Net Income | $242M | $208M | 16% | $134M | 81% |
The company partnered with Apple to launch durable, color-infused glass and ceramic shield technology in the iPhone 15 and iPhone 15 Plus, a first for any smartphone. Corning also announced plans to expand production of bendable glass in South Korea to support consumer electronics innovation.
| Specialty Materials | Q3’23 | Q2’23 | % Change QoQ | Q3’22 | % Change YoY |
|---|---|---|---|---|---|
| Net Sales | $563M | $423M | 33% | $519M | 8% |
| Net Income | $72M | $33M | 118% | $96M | -25% |
In the automotive market, Corning is collaborating with AUO Corporation to accelerate curved display modules enabled by Corning’s cold form technology. The company said this technology advances sustainable practices while enabling differentiated interior designs.
Corning highlighted recent approvals of its near-term emissions reduction targets, new sustainable product offerings in life sciences, and an imaging sensor to detect methane emissions from pipelines.
