In its Q3 financial report, Corning reported a year-over-year sales increase of 22% for Optical Communications. Sales exceeded $1 billion for the second consecutive quarter. Sales growth was driven by strong demand from both data center and carrier customers, and the acquisition of 3M’s Communication Markets Division. Net income was up 27% year over year, as capital investments yielded clear benefits.
The company said it saw increased customer commitments that support accelerated capacity expansion. Strong growth is expected to continue in the fourth quarter, as additional capacity ramps, and the company supplies large projects underway at multiple customers in both the carrier and data center businesses. Fourth quarter sales are expected to be up by a low-single digit percentage sequentially, resulting in year-over-year sales growth slightly better than the third quarter.
For full-year 2018, sales are expected to increase by a high-teens percentage over last year, with organic growth in the low teens and approximately $200 million in sales from the acquisition of 3M’s Communication Markets Division.
Corninng also cited share growth and said its optical business continued to progress faster than expected toward goal of $5 billion in annual sales by 2020.
