Corning bet its post-fiber future on LCD glass and returned to profit by 2005

Corning's net sales fell from $6.92 billion in 2000 to $3.16 billion in 2002 as the telecom boom collapsed, and it lost $1.3 billion that year. GlassOnline reported the company was close to bankruptcy protection in 2002 with a $2.2 billion convertible note due; its stock fell from $110 to below $2.

Chairman James Houghton returned from retirement in 2002 and, with Wendell Weeks, chose to concentrate investment on LCD glass substrates for flat panels, which had real demand growth. Display Technologies sales tripled from $595 million (2003) to $1,742 million (2005), reaching 38% of company sales.

The numbers turned in 2005: net income of $585 million, the first profit since 2000, against a $2,165 million loss in 2004 that was driven by a $1.42 billion goodwill impairment. Corning's 10-K shows Display segment net income of $1,095 million in 2005.

Sales recovered from $3.16B (2002) to $4.58B (2005); net income hit $585M after a $1.3B 2002 loss; Display Technologies grew to 38% of sales.

LCD glass had a fast-growing market while telecom fiber demand was dead.

Fusion-draw manufacturing gave Corning a cost and quality edge rivals could not quickly copy.

Building plants beside Asian panel makers locked in customers like Samsung and Sharp.

Co-investing with customers reduced the risk of overbuilding.

When your core market collapses, redeploy capacity and capital into a technology with proven demand instead of waiting for the old market to return.

Display Technologies became Corning's profit engine, and by 2006 the company's market value reached about $42 billion, according to GlassOnline. The LCD bet funded the research that later produced Gorilla Glass.