Corning Incorporated (GLW - Free Report) recently announced that 10 of its global manufacturing plants have surpassed energy efficiency standards established by the U.S. Environmental Protection Agency’s (“EPA”) Energy Star Challenge for Industry. Companies have to increase their industrial sites’ energy efficiency by at least 10% in five years or less time to meet this challenge. Following the news, its equity price increased 1.19% during the trading session to eventually close at $30.63 on Jan 18.
Notably, 10 of Corning’s production facilities improved their energy efficiency by 10.4% to 52.4% in less than five years. These include its Environmental Technologies facilities in Erwin, NY and Life Sciences facilities in Salt Lake City, UT; Durham, NC and Warsaw, Poland. In addition, Optical Communications facilities in Hickory, NC; Winston-Salem, NC; Reynosa, Mexico; Shanghai, China; Strykow, Poland and Vordingborg, Denmark received the accreditation. The diversity of these sites, which represent three Corning businesses in five countries, underscores that energy savings is a priority for the company. A number of companies, including Corning, are making their industrial sites more efficient while reducing carbon emissions with EPA’s program. They have collectively saved more than 76 trillion British thermal units.
Corning’s Global Energy Management (GEM) program researches and implements projects at each of the company’s manufacturing plants worldwide to meet energy-saving objectives. These include manufacturing process innovation, facility design, and maximizing energy efficiencies in the plant and through improved supply chain initiatives. Since Corning created its GEM program in 2006, it has won recognition as an Energy Star Partner of the Year every year since 2014, delivering more than half a billion dollars in savings, and cutting greenhouse gas emissions by more than 2.3 million metric tons.
Earlier, Corning was also recognized by the European Commission for developing an innovative solution that helps clean the air. It received the Horizon 2020 Materials for Clean Air Award for its Air Purification Technology, which helps reduce particulate matter in the air to levels below the guidelines set by the World Health Organization, underscoring the collaborative work of its R&D and engineering teams in Europe and China.
Existing Business Scenario
Being a leading innovator in the glass substrate industry, Corning has been developing formulations that are aptly suited for imparting superior picture quality with environment-friendly production process. The company has several products focusing on the datacenter with a portfolio consisting of optical fiber, hardware, cable and connectors that helps it create solutions to meet varying consumer needs. The expanding fiber optic market should drive Corning’s growth in the long haul. Further, the company aims to move forward in the value chain beyond glass and tap the immense potential of the automotive market for future growth.
Owing to operational efficiency, Corning’s shares have rallied 23.7% over the past two years on an average, outperforming the industry’s growth of 21.1%.
Corning currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Spirent Communications plc (SPMYY - Free Report) , Acacia Communications, Inc. (ACIA - Free Report) and Vocera Communications, Inc. (VCRA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spirent has a long-term earnings growth expectation of 11%.
Acacia has a long-term earnings growth expectation of 12.4%.
Vocera has a long-term earnings growth expectation of 18.3%.
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