Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Will a Gorilla Glass Explosion Keep Corning Afloat In 2013?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Corning (NYSE: GLW  ) is more tied to the HDTV market than it is to the booming smartphone and tablet market. That's because its third-quarter HDTV display net profit made up 82% of its total profit, which also declined 26% on a year-over-year basis. The reason why Gorilla Glass has become a hot topic among investors is because it was Corning's only business segment to report year-over-year growth in income last quarter . Naturally, Corning has focused on growing this specialty materials segment to drive more profitability going forward.

Gorilla Glass 3
Gorilla Glass 3 improves upon previous generations of Gorilla Glass by offering three times more scratch resistance and 40% overall fewer visible scratches. As a whole, the Gorilla Glass Empire has grown to more than 1 billion devices from more than 33 brands. It's especially useful for touch-enabled devices, which can better stand up to the rigors of use thanks to such products as Gorilla Glass. Since Gorilla Glass 3 significantly improves upon version 2.0, it's likely that Corning will be able to justify a higher premium over predecessors. This should make Gorilla Glass 3 a future driver of profit growth for Corning come mid-2013 when it becomes available .  

New area of focus
Signage has become a new area of focus for Gorilla Glass. At CES in Las Vegas, Corning partnered with Christie Digital Systems to showcase Christie's 55-inch LCD flat-panel display suited for creating video display walls with multitouch technology. Intended for commercial applications, the durability of Gorilla Glass makes it an ideal choice for traveling exhibits or public displays. NPD estimates this market will grow from 3.1 million units shipped annually to 12 million units by 2018.  

Thanks, Intel!
At CES, Intel (Nasdaq: INTC  ) unveiled the specifications for its next-gen Ultrabooks, requiring OEMs to include touch displays. Currently, Corning's Gorilla Glass is only used by four PC manufacturers. Considering Intel has nearly 140 Ultrabooks on the market, this is likely another potential catalyst for Corning to sell more Gorilla Glass.

Not sitting idle
Corning isn't sitting idly and waiting for the HDTV market to rebound. It's working to drive profitability in new areas thanks to innovations such as Gorilla Glass. As much as I commend management to drive these initiatives, investors still need to recognize that unless the HDTV market rebounds or Corning can pull off some incredible growth in its specialty materials segment, shares are likely to stagnate for the time being.

With the explosive growth of smartphones worldwide, many investors thought they would ride Corning's dominant cover glass to massive investment returns. That hasn't played out yet, as mobile growth has failed to offset declines in the company's core business. In this brand-new premium research report on Corning, our analyst walks through the business, as well as the key opportunities and risks facing it today. Click here to claim your copy, and receive a full year of updates as key events unfold.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 12, 2013, at 10:32 AM, HeidiRoed wrote:

    Steve, Is there any chance you might report on the other GLW businesses and how they are doing? Every reporter out there focuses on the Gorilla Glass business which I understand is the majority of their business, but the diversification effort GLW is working on right now is the future. How is that diversification effort going? Which of the other businesses are showing progress? What new products are those businesses launching? I'd like to read about that. Thanks, Heidi

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2188242, ~/Articles/ArticleHandler.aspx, 9/29/2016 11:42:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:01 PM
GLW $23.52 Down -0.11 -0.47%
Corning CAPS Rating: *****
INTC $37.32 Down -0.12 -0.32%
Intel CAPS Rating: ****