Corning (GLW) forecasted that its current-quarter profit would fall short of Wall Street expectations, citing a slowdown in demand for its clean-air technologies. The company's shares dropped over 8% in early trading, disappointing investors who had hoped for a profit boost from the rising use of generative AI technologies.

Despite strong sales in its optical fiber segment, which saw a 4% increase for the quarter ending June 30 due to higher demand from wireless carriers and AI infrastructure, Corning's overall performance was hindered by its Environmental Technologies unit. This division, which produces emission control filters for vehicles, experienced a 6% sales decline and a 9% drop in net income to $97 million, largely due to reduced demand for heavy-duty trucks amid a North American freight slowdown.

Corning, known for its Gorilla Glass used in smartphones from Apple and Samsung, projected core earnings of 50 to 54 cents per share for the third quarter. This forecast is slightly below the analysts' average estimate of 54 cents. The company also expected core sales of around $3.7 billion, marginally below the analysts' projection of $3.75 billion. For the second quarter, Corning reported core sales of $3.60 billion, surpassing expectations, and an adjusted per-share profit of 47 cents, which beat estimates by 1 cent.