Corning Introduces New Optical Cable Manufacturing Facility Supported By AT&T

Corning Introduces New Optical Cable Manufacturing Facility Supported By AT&T
  • Corning Inc GLW expanded manufacturing capacity for optical cable based on a long-term relationship with AT&T Inc T as the carrier expands its fiber service. 
  • As part of a $1 trillion infrastructure bill passed in November 2021, Congress earmarked $42.5 billion for grants for states to expand broadband infrastructure, Reuters reports
  • Corning will build a new cable manufacturing facility in Gilbert, Arizona, located in the Greater Phoenix region, adding 250 jobs and extending its strategic investments in optical fiber, cable, and connectivity solutions.
  • The new facility is Corning's latest in a series of investments in fiber and cable manufacturing, totaling more than $500 million since 2020. 
  • These investments, supported by customer commitments, nearly double Corning's ability to serve the U.S. cable market. 
  • The Arizona facility will likely open in 2024. It will be the industry's westernmost U.S. manufacturing site for optical cable, allowing Corning to serve growing demand in the western U.S. and Canada.
  • Corning reported second-quarter FY22 core sales growth of 7% year-on-year to $3.76 billion, slightly missing the consensus.
  • Core EPS of $0.57 was in line with the consensus.
  • AT&T deployed fiber internet service to the Mesa, Arizona, area, with service expected to be available to Mesa residents in 2023.
  • U.S. wireless carriers and broadband-internet providers fought to win customers from each other.
  • Wireless carriers exploited the excess capacity on next-generation networks to win traditional broadband-internet users, while cable companies retaliated with new and cheaper cellphone plans. 
  • Price Action: GLW shares traded higher by 0.70% at $34.33 on the last check Tuesday.

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