CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Corning shares fall as supply chain issues reduce profits

By William Hoffman

19:40, 26 October 2021

Gorilla Glass
Corning reports 3Q earnings - Credit: Shutterstock

Shares in specialty glass maker Corning fell by around 5% on Tuesday after reporting lower profits from its automotive and smartphone businesses in its latest earnings call.

Corning, which makes screens for smartphones as well as other specialized glass materials, reported a 20% gain in net sales overall to $3.61bn, which was just short of analyst expectations for $3.63bn (£2.64m), according to FactSet surveys.

Net income fell by 17% year over year and 13% quarter over quarter to $371m as automakers and smartphone makers stalled production amid a shortage of semiconductors.

Cornings shares were trading at a price of around $36.6 per share, which is still up more than 5% on the year. 

Automotive sector

Semiconductor shortages reduced Corning’s automotive sales by $40m, and the company predicted further declines in the fourth quarter until the supply shortage abates.

Still, demand for new cars remains high, and there is optimism that once supply constraints soften sales will return.

Corning also announced a new partnership with Jeep, which is now part of the global automotive company called Stellantis following a merger between Fiat Chrysler and the French car company PSA Group. Corning will make Gorilla glass windshields for 2021 Jeep Wrangler and Gladiator models as a factory-installed option.

The lighter weight windshield technology is expected to improve fuel efficiency in combustion engine cars and improve battery mileage on new EVs.

“Continue to watch this space. We have a number of significant innovations going on to solve glazing problems that EVs...represent,” Corning CEO Wendell Weeks said on Tuesday’s earnings call. “It’s too early to say we have this and start building in another large revenue generator for us, but we ought to be able to say that within the coming 12 months.”

Inflation affects profits

Rising inflationary pressures and higher shipping costs also lowered Corning’s profits in the quarter.


14,557.80 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 3.0

Oil - Crude

71.98 Price
+2.450% 1D Chg, %
Long position overnight fee -0.0201%
Short position overnight fee -0.0018%
Overnight fee time 21:00 (UTC)
Spread 0.04


27,214.75 Price
+0.030% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00


1,948.36 Price
-1.480% 1D Chg, %
Long position overnight fee -0.0185%
Short position overnight fee 0.0103%
Overnight fee time 21:00 (UTC)
Spread 0.30

Operating expenses for the nine-month period ending September 30 are up 5.8% to $1.35bn, according to the company’s financial statements.

“Previous quarters we would have said inflation is transitory,” Weeks said. “Through conversations with our supply chain head and our investors, it led us to say this may last longer than we thought and that we may have more challenged supply chains into the future.”

Read more: Raytheon, Lockheed Martin shares tumble on earnings release



The difference between stocks and CFDs:

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading