Corning Secures New Long-Term Diesel Supply Agreements
CORNING, N.Y., January 03, 2012 – Corning Incorporated (NYSE: GLW) announced today that it has entered into new long-term supply agreements with industry-leading, heavy-duty diesel engine, truck, construction, and agricultural equipment manufacturers. The multi-year agreements will enable reliable supply to customers by reserving a substantial portion of Corning’s current and future diesel capacity for their needs.
“This is an important step toward strategically managing capacity constraints and supporting key customers during a critical growth period,” said Mark A. Beck, senior vice president and general manager, Corning Environmental Technologies. “We plan to optimize our current production capability, expand existing facilities, and invest in a new manufacturing facility to assure a reliable supply of diesel products to our core customers for years to come.”
Beck told investors at the UBS Global Technology and Services Conference in November that demand for Corning’s heavy-duty diesel products could triple in the next five years due to tightening global regulations. Corning expects its overall Environmental Technologies segment to reach about $1 billion in sales this year and to grow to roughly $1.4 billion in annual revenue by 2014.
In November, Beck also announced a price increase for heavy-duty substrates, effective January 2012, and Corning’s plan for a second dedicated heavy-duty diesel facility to support projected market needs. The global site-selection process for that facility is underway now. The location will be announced in the first quarter of 2012.
“Corning remains committed to the emissions-control industry,” Beck said. “We will continue to invest in technology and capacity to support our strategic customers and their anticipated growth in emerging markets.”
Corning is a leading supplier of advanced cellular ceramic substrates and diesel particulate filters for the world's major manufacturers of gasoline and diesel engines. The company invented an economical, high-performance, cellular ceramic substrate in the early 1970s that is now the standard for catalytic converters worldwide. In 1978, Corning developed the cellular ceramic particulate filter to remove soot from diesel emissions. Corning continues to leverage its expertise in materials, processes, and manufacturing to develop advanced ceramic substrates and diesel particulate filters that help meet demanding mobile emissions requirements.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning’s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed in Corning’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on 160 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy, and metrology.
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