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Corning sees weak Q3 profit on slow demand for clean-air tech
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Corning sees weak Q3 profit on slow demand for clean-air tech
Jul 30, 2024 6:51 AM

July 30 (Reuters) - Specialty glass maker Corning

forecast current-quarter profit largely below Wall

Street estimates on Tuesday, blaming a slowdown in demand for

its clean-air technologies, even as it saw robust sales for its

optical fiber products.

Shares slipped more than 8% in early trading as the report

failed to rally investors, who were betting on the growing

adoption of generative artificial intelligence technologies to

drive the company's profits higher.

Corning's optical communications segment, its largest unit,

has benefited from higher demand for fiber optic cables driven

by improved spending from wireless carriers as well as companies

building AI operations that require high-capacity optic cables.

The business saw a 4% increase in sales in the quarter ended

June 30.

It was not enough to offset a 6% slump in sales at its

Environmental Technologies unit, which makes filter products for

emissions control in automobiles, due to slowing demand for

heavy-duty Class 8 trucks amid a freight slowdown in North

America.

The segment's net income fell 9% to $97 million.

Known for the Gorilla Glass used in smartphones made by

companies including Apple ( AAPL ) and Samsung,

Corning projected core earnings between 50 cents and 54 cents

for the third quarter, the midpoint of which is below analysts'

average estimate of 54 cents, according to LSEG data.

New York-based Corning forecast core sales of about $3.7

billion, a touch below analysts' estimate of $3.75 billion.

The company reported core sales of $3.60 billion in the

second quarter, edging past market expectations of $3.55

billion. Its adjusted per-share profit of 47 cents topped

estimates by 1 cent.

(Reporting by Deborah Sophia in Bengaluru)

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