I’m posting this just in case some of you missed an excellent comment and observation by the Wood-meister in my previous post on Corning (GLW)….
“Dawg, re: GLW
It is my understanding that they have a significant portion of the diesel oxidation catalyst business mandated by the Gov. These new regulations basically make the diesel engine a portable air cleaner. Seriously, in the 2010 models, the exhaust from school buses, 18 wheelers, etc., will actually be cleaner than the outside air.
I believe that Corning is making the majority of the substrates in these oxidation catalysts. Keep in mind that every commercial diesel vehicle will now have these installed for emissions.
I may be off on some of the specifics here…but I believe I am correct. I have been watching GLW as I think this side of the business may have been missed by the less astute researcher.”
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Woody,
Very perceptive. You wood [sic] be correct.
Their environmental technologies unit is a diamond in the rough. They have been involved with clean air technologies for over 30 years now. Yet, it is hardly ever mentioned. The sales in this segment of their business are to the emissions control systems OEMs. As you pointed out, the use of GLW substrates and filters are being required by auto and diesel engine manufacturers in both the U.S. and Japan, following new environmental regulations and standards.
Three of their scientists received the 2003 National Medal of Technology for their invention of high-performance cellular ceramic substrates which will be used under the new regs. GLW’s enviro. tech. is the standard of choice by OEMs.
The environmental technlogies unit showed some weakness in Q1:2008, partly related to weakening heavy-duty diesel engine demand, and the slow economy in general. However, for reasons that you so adeptly fleshed out, I expect to see this portion of their business be a larger contributor to revenues in 2008.
GLW may be one of the best undiscovered “green” companies.
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