Corning expects glass prices to stay flat sequentially in the first quarter of 2023 but warned of an overall on-quarter decrease in its core business sales.
For the first quarter, Corning expects core sales in the range of US$$3.2 billion to US$3.4 billion and core EPS in the range of US$0.35-0.42. It expects sales to decline more than seasonally due to pandemic-related disruptions in China, the company said in a press release.
The company noted that its Display Technologies business unit managed to maintain stable pricing year-over-year despite a sharp drop in panel maker utilization in the second half of 2022.
In Display Technologies, fourth-quarter sales were US$783 million, up 14% sequentially, as panel maker utilization increases ramped up sales volume, and glass price was consistent with the third quarter. Net income was US$171 million, up 28% sequentially, driven by strong execution and additional volume.
For the full year, Display Technologies sales reached US$3.3 billion, down 11% year over year, driven by lower glass volume as a result of the industry correction in the second half of 2022. Glass price was consistent for the entire year, and the company expects glass price in the first quarter to remain consistent with the fourth quarter.
The company noted that its newly developed glass composition, the Corning Corilla Glass Victus 2, will be adopted by Samsung Electronics for its next generation of Galaxy flagship smartphones.
Corning's premium cover materials are also on the front and back of the Samsung Galaxy S22 devices, and Corning's DX products are featured on all five rear cameras of the Samsung Galaxy S22 Ultra.
Wendell P. Weeks, chairman and CEO, said in the statement that "We will continue to focus on operating each of our businesses well in 2023, including adapting to global and market dynamics, while simultaneously advancing long-term growth initiatives and capabilities that will drive our success as the global economy stabilizes."
Article translated by Steve Shen
