Corning, a manufacturer of glass floors for LCD pa
2021-04-13
Corning, a manufacturer of glass floors for LCD panels, announced on December 9, 2008 local time that it would reduce the price of glass floors in the first quarter of 09 (January ~ March) "by an unprecedented magnitude in recent years" (James B. Flaws, vice chairman of the board of directors and CFO). If you include Samsung Corning Precision Glass (SCP), a joint venture with Samsung Electronics of South Korea, Corning is the largest manufacturer in the industry with a market share of more than 50%. Corning is a major supplier of glass floors to Samsung Electronics and Sharp.
Corning said that due to the continuous reduction of production by LCD panel manufacturers, Corning's supply capacity far exceeds the scale of customer demand. In addition, customers are constantly asking for lower prices, and they are forced to reduce their prices due to this pressure. The company predicts that demand recovery will not be until the second quarter of '09 (April ~ June).
Glass base plate suppliers of major LCD manufacturers (Figures are calculated by supply area.) Data provided by DisplaySearch, December 2007). (Click on the image to enlarge it)
Corning revealed that while lowering prices, it will also work on structural reform of the entire company. With the exception of the life sciences business, the company's other businesses have been affected by the deterioration of the global economy and will be considered for downsizing in the future. The company said that the demand for LCD panels "has shrunk sharply, exceeding the expectations of 2~3 weeks ago" (Flaws), so on November 18, 08, it lowered its forecast for the fourth quarter of '08 (October ~ December). At that time, it was said that it would reduce the production capacity of glass floors in the fourth quarter of '08 (October ~ December), and the release materials further mentioned the issue of layoffs.
"Although this is not a pleasant measure, our business objective is to maintain a healthy cash flow for the full fiscal year. Although the operating environment is relatively harsh, our company's core business will show a growth trend in the long run. At present, there are more than 1.9 billion TVs in use in the world, of which less than 13% are LCD TVs. We believe that in the future, the vast majority of televisions will be replaced by LCD TVs" (Flaws). Details of the structural reform will be disclosed when the financial results are announced in January 09.
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