Corning Incorporated (GLW - Free Report) recently announced that its manufacturing facility in Kaiserslautern, Germany has produced its millionth Corning DuraTrap GC gasoline particulate filter (GPF) for automotive emissions control, marking an important milestone for its Environmental Technologies business. The engineering of these ceramic particulate filters was initiated to help automobile manufacturers meet the Euro 6d emissions standard and capture the growing European market demand for emission controlled automobiles.
What is Euro 6d Emissions Standard?
Euro emissions standards are set to maintain a certain permisible limit of toxic automobile emissions. Euro 6d is one of the many types of standards, which will be implemented for petrol and diesel automobiles by September this year. These standards aim to significantly reduce fine particulate emissions from gasoline-direct-injection engine vehicles under new real-driving emissions testing. These regulations created high demand for emission control technology, which gave Corning the opportunity to design the Corning DuraTrap GC GPF and supply them to automakers in Europe.
Corning DuraTrap GC GPF: The Nitty-Gritty
The filters, specially designed for gasoline engines, have a cordierite-based ceramic microstructure that clears fine particles efficiently while maintaining engine performance. These filters enable high washcoat loading at a superior pressure drop for excellent catalytic performance to address tighter standards for gas emissions as well.
Taking Advantage of Regulation Driven Demand
Corning’s Kaiserslautern facility, which has been producing diesel particulate filters since 2011, began its mission to increase the production capacity of the DuraTrap filters toward the end of 2016 with an investment of $100 million, part of which was used to increase production in the company’s manufacturing facility in China as well. The strategic step was taken in anticipation of higher demand of products due to the growing need for automakers to abide by new pollution standards. This investment was a huge step forward for the company and made it the most trusted filter supplier to assist automobile manufacturers produce their cleanest gasoline engines and comply with the regulations.
Even though in the past six months the stock has underperformed the industry’s 5% decline with an average loss of 14.2%, the increasing demand for Corning’s products in the automobile market is expected to boost its revenues in future.
Zacks Rank and Other Stocks to Consider
Corning currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the space include Turtle Beach Corporation (HEAR - Free Report) and Cypress Semiconductor Corporation (CY - Free Report) sporting Zacks Rank #1 (Strong Buy), and Marvell Technology Group Ltd. (MRVL - Free Report) , carrying Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach beat earnings estimates twice in the preceding four quarters with an average positive surprise of 33.66%.
Cypress has an expected long-term earnings growth rate of 16.1%.
Marvell has an expected long-term earnings growth rate of 11.3%.
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