Corning cuts Q3 volume guidance for Display and Optical Communications units
Corning is providing the following updates on the performance of its business segments in Q3, reducing expectations for two - Display Technologies and Optical Communications - and maintaining guidance in its other three. Within Corning's Display Technologies segment, several panel manufacturing customers have reduced utilization below anticipated levels in the current quarter. Consequently, Corning is reducing its Display volume forecast to a sequential decline of a high-single digit percentage in the third quarter. For FY19, the company now expects display glass volume to be up slightly and to outperform the overall glass market, driven by the company's ramp-up of its Gen 10.5 manufacturing capacity. The company continues to expect third-quarter prices to be flat with the second quarter, and full year glass prices to decline at a low-to-mid single digit percentage. Within Corning's Optical Communications segment, several major carriers are further reducing capital spending on cable deployments and fiber-to-the-home projects. In addition, some enterprise customers have reduced their spending below anticipated levels. Consequently, Corning now expects third-quarter Optical Communications sales to decline year-over-year by a low-teen percentage, versus a prior expectation of a low-single digit percentage decline. For FY19, Corning now forecasts Optical Communications sales will decline by 3% to 5%, versus its prior expectation of a low-to-mid-single digit percentage increase. Corning expects both carrier and enterprise network sales to decline year-over-year in the second half of 2019.