Company achieves year-over-year growth across all
businesses
Strategy and Capital Allocation
Framework continues to deliver value to shareholders
CORNING, N.Y.; APRIL 25, 2017 - Corning
Incorporated (NYSE: GLW) today announced results for first-quarter
2017.
News Summary:
- Strong first-quarter results demonstrate the
company's continued positive momentum. Compared to the first
quarter of 2016: GAAP EPS increased $0.43 to $0.07; core EPS rose
39% to $0.39; GAAP and core sales increased 16% and 14% to $2.38
billion and $2.49 billion, respectively
- Solid performance across all business segments
highlighted by: sales growth in Optical Communications; continued
rapid adoption of Corning®
Gorilla® Glass 5; and
continued glass price moderation in Display Technologies
- Further advancement on Strategy and Capital
Allocation Framework initiatives: more than $6.5 billion returned
to shareholders since Framework's introduction in October 2015;
technical and commercial progress demonstrated value of focused
portfolio
- Year-over-year growth in sales and EPS expected
to continue in the second quarter
"We are very pleased with the excellent
performance and growth across all of our businesses this quarter,"
said Wendell P. Weeks, chairman, chief executive officer and
president. "The strategic and financial benefits of Corning's
cohesive portfolio are becoming even more apparent. We are on track
to deliver our 2017 objectives and overall Framework goals. Looking
into the second quarter, we expect our momentum to be further
demonstrated with year-over-year sales and EPS growth."
Strategy and Capital Allocation
Framework Progress
Corning's Strategy and Capital Allocation Framework continues to
deliver long-term value to shareholders. Utilizing its financial
strength, the company plans to deliver more than $12.5 billion to
shareholders while investing $10 billion in growth opportunities
and sustained leadership between 2016 and 2019. In the first
quarter, Corning returned $552 million to shareholders through a
combination of dividends and stock buybacks, and, since the
Framework was announced, has returned more than $6.5 billion to
shareholders. In addition, Corning's focused portfolio is
delivering excellent results.
"Corning's leadership in a distinctive and
cohesive set of capabilities increases our relevance in solving our
customers' toughest challenges," Weeks added. "Verizon's
announcement last week is a great example. Verizon has committed to
purchase at least $1.05 billion of optical fiber and associated
solutions from Corning as they reinvent their network to support 5G
and new services. Our Optical Communications market-access platform
is central to realizing Verizon's vision because of our ability to
economically expand capacity and deliver innovative solutions."
In Display Technologies, the company's objective
is to stabilize returns. First-quarter LCD glass price declines
equaled the most moderate first-quarter declines in the past six
years. Full-year 2017 LCD glass prices are expected to decline by
about 10%, or possibly at a lower rate.
Other progress includes the continued rapid
adoption of Gorilla® Glass 5,
which supports the company's goal of doubling sales in mobile
consumer electronics. In the automotive market-access platform,
Corning has won a majority of gas particulate filter (GPF)
platforms. The company is also seeing progress toward
commercialization of Gorilla Glass for Automotive, where interest
in interiors is accelerating and progress toward additional wins
for exteriors continues.
First-Quarter Results and
Comparisons
(In millions, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2017 |
|
Q4
2016 |
|
%
change |
|
Q1
2016 |
|
%
change |
GAAP
Net Sales |
|
$ |
2,375 |
|
$ |
2,476 |
|
(4%) |
|
$ |
2,047 |
|
16% |
GAAP
Net Income |
|
$ |
86 |
|
$ |
1,572 |
|
(95%) |
|
$ |
(368) |
|
** |
GAAP
EPS |
|
$ |
0.07 |
|
$ |
1.47 |
|
(95%) |
|
$ |
(0.36) |
|
** |
Core
Sales* |
|
$ |
2,485 |
|
$ |
2,551 |
|
(3%) |
|
$ |
2,171 |
|
14% |
Core
Earnings* |
|
$ |
407 |
|
$ |
534 |
|
(24%) |
|
$ |
340 |
|
20% |
Core EPS* |
|
$ |
0.39 |
|
$ |
0.50 |
|
(22%) |
|
$ |
0.28 |
|
39% |
** Percent change not
meaningful
*Core performance measures are
non-GAAP financial measures. The reconciliation between GAAP and
non-GAAP measures is provided in the tables following this news
release, as well as on the company's website. Core performance
metrics (non-GAAP) are adjusted to exclude the impact of changes in
Japanese yen and Korean won foreign exchange rates, as well as
other items that do not reflect ongoing operations of the company.
Corning does not forecast the movement of the Japanese yen against
the U.S. dollar or other items that do not reflect ongoing
operations. As a result, the company is unable to provide guidance
on a GAAP basis. See "Use of Non-GAAP Financial Measures" for
details on core performance measures.
Segment Results and
Outlook
Display Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2017 |
|
Q4
2016 |
|
%
change |
|
Q1
2016 |
|
%
change |
GAAP
Net Sales |
|
$ |
736 |
|
$ |
830 |
|
(11%) |
|
$ |
705 |
|
4% |
GAAP
Net Income |
|
$ |
249 |
|
$ |
243 |
|
2% |
|
$ |
209 |
|
19% |
Core
Sales* |
|
$ |
846 |
|
$ |
904 |
|
(6%) |
|
$ |
829 |
|
2% |
Core Earnings* |
|
$ |
256 |
|
$ |
276 |
|
(7%) |
|
$ |
223 |
|
15% |
NOTE: In all segments except the
Display Technologies segment, core net sales are consistent with
GAAP net sales. Because a significant portion of revenues and costs
in the Display Technologies segment are denominated in Japanese yen
and Korean won respectively, this segment's net sales and costs are
adjusted to remove the impact of translating yen and won into U.S.
dollars.
In the first quarter, Display Technologies
reported strong results, with core sales of $846 million and core
earnings of $256 million. The LCD glass market and Corning's volume
were up by a mid-teen percentage year over year. First-quarter
sequential glass price declines were moderate, equaling the best
first-quarter declines in the past six years.
In the second quarter, the overall LCD glass
market and Corning's volume are expected to increase by a low
single-digit percentage sequentially, which is equivalent to a
mid-single digit percentage increase year over year. The company
anticipates sequential LCD glass price declines will be
substantially less than the first quarter, with full-year 2017
declines expected to be about 10%, or possibly a lower rate.
Tony Tripeny, senior vice president and chief
financial officer, noted, "We are very pleased with the dynamics of
our Display business, and we continue to expect mid-single digit
percentage growth in glass volume for the full year, in line with
the overall LCD glass market."
Optical Communications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2017 |
|
Q4
2016 |
|
%
change |
|
Q1
2016 |
|
%
change |
GAAP
Net Sales |
|
$ |
818 |
|
$ |
819 |
|
- |
|
$ |
609 |
|
34% |
GAAP
Net Income |
|
$ |
82 |
|
$ |
67 |
|
22% |
|
$ |
17 |
|
382% |
Core Earnings* |
|
$ |
93 |
|
$ |
87 |
|
7% |
|
$ |
26 |
|
258% |
First-quarter sales in Optical Communications rose
34% and core earnings more than tripled year over year. The company
saw strong growth in the North American fiber-to-the-home market.
In the second quarter, sales are expected to be up approximately
10% year over year.
Environmental
Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2017 |
|
Q4
2016 |
|
%
change |
|
Q1
2016 |
|
%
change |
GAAP
Net Sales |
|
$ |
275 |
|
$ |
245 |
|
12% |
|
$ |
264 |
|
4% |
GAAP
Net Income |
|
$ |
31 |
|
$ |
27 |
|
15% |
|
$ |
34 |
|
(9%) |
Core Earnings* |
|
$ |
37 |
|
$ |
27 |
|
37% |
|
$ |
37 |
|
- |
In Environmental Technologies, first-quarter sales
were up 4% and core earnings were consistent with year-ago results.
For second-quarter 2017, segment sales are expected to be
consistent with second-quarter 2016.
Specialty Materials:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2017 |
|
Q4
2016 |
|
%
change |
|
Q1
2016 |
|
%
change |
GAAP
Net Sales |
|
$ |
300 |
|
$ |
336 |
|
(11%) |
|
$ |
227 |
|
32% |
GAAP
Net Income |
|
$ |
48 |
|
$ |
68 |
|
(29%) |
|
$ |
26 |
|
85% |
Core Earnings* |
|
$ |
48 |
|
$ |
65 |
|
(26%) |
|
$ |
32 |
|
50% |
Specialty Materials first-quarter segment sales
rose 32% year over year, led by strong Corning Gorilla Glass
volume, while core earnings were up 50% year over year. For the
second quarter, the sales growth rate is expected to be in the high
teens year over year.
Life Sciences:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2017 |
|
Q4
2016 |
|
%
change |
|
Q1
2016 |
|
%
change |
GAAP
Net Sales |
|
$ |
210 |
|
$ |
206 |
|
2% |
|
$ |
204 |
|
3% |
GAAP
Net Income |
|
$ |
17 |
|
$ |
13 |
|
31% |
|
$ |
12 |
|
42% |
Core Earnings* |
|
$ |
20 |
|
$ |
17 |
|
18% |
|
$ |
18 |
|
11% |
In Life Sciences, first-quarter sales were up 3%,
and core earnings were up 11% year over year. For the second
quarter, the Life Sciences segment is expected to have low-single
digit percent sales growth year over year.
Conclusion
"We're off to a very strong start to the year, and expect
year-over-year sales and earnings growth in the second quarter,"
said Tripeny. "We remain confident in our ability to deliver on our
2017 objectives, and on the overall goals of our Strategy and
Capital Allocation Framework, as we address the rich set of
opportunities ahead of us."
Upcoming Investor
Events
Corning will hold its annual meeting of shareholders at the Corning
Museum of Glass auditorium on Thursday, April 27, 2017, at 11 a.m.
EDT. A live audio webcast will be available the day of the event.
To access the audio webcast, please go to
www.corning.com/investor_relations, select "Events" and click on
the annual shareholder meeting's link "More Information" to
register and access the webcast.
On June 1, Corning will attend Bernstein's 33rd
Annual Strategic Decisions Conference to be held in New York City
at the Grand Hyatt.
Corning will host its 2017 Investor Meeting in New
York on Friday, June 16. To register, go to the "Events" section of
Corning's website at www.corning.com/investor_relations. The event
will run from 8 a.m. to noon, and be held at CURRENT at Chelsea
Piers (ground floor), Pier 59 (23rd Street and West Side Highway),
New York City.
First-Quarter Conference Call
Information
The company will host a first-quarter conference call on Tuesday,
April 25, at 8:30 a.m. EDT. To participate, please call toll free
(800) 288-9626 or for international access call (612) 332-0802
approximately 10-15 minutes prior to the start of the call. The
host is "NICHOLSON". To listen to a live audio webcast of the call,
go to Corning's website at www.corning.com/investor_relations,
click "Events" and follow the instructions. A replay will be
available beginning at 11 a.m. EDT and will run through 5 p.m. EDT,
Tuesday, May 9. To listen, dial (800) 475-6701 or for international
access dial (320) 365-3844. The access code is 421217. The webcast
will be archived for one year following the call.
Presentation of Information in
this News Release
Non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP. Corning's non-GAAP financial measures exclude
the impact of items that are driven by general economic conditions
and events that do not reflect the underlying fundamentals and
trends in the company's operations. The company believes
presenting non-GAAP financial measures assists in analyzing
financial performance without the impact of items that may obscure
trends in the company's underlying performance. Detailed
reconciliations outlining the differences between these non-GAAP
measures and the most directly comparable GAAP measure can be found
on the company's website by going to the Investor Relations page
and clicking "Financial Highlights" under the "Performance" tab.
These reconciliations also accompany this news release.
Caution Concerning
Forward-Looking Statements
This press release contains "forward-looking statements" - that is,
statements related to future events that by their nature address
matters that are, to different degrees, uncertain. These
forward-looking statements relate to, among other things, the
company's future operating performance, the company's share of new
and existing markets, the company's revenue and earnings growth
rates, the company's ability to innovate and commercialize new
products, and the company's implementation of cost-reduction
initiatives and measures to improve pricing, including the
optimization of the company's manufacturing capacity.
In this context, forward-looking statements often
contain words such as "will," "believe," "anticipate," "expect,"
"intend," "plan," "seek," "see," "would," and "target". Although
the company believes that these forward-looking statements are
based upon reasonable assumptions regarding, among other things,
current estimates and forecasts, general economic conditions, its
knowledge of its business, and key performance indicators that
impact the company, actual results could differ materially. The
company does not undertake to update forward-looking statements.
Some of the risks, uncertainties and other factors that could cause
actual results to differ materially from those expressed in or
implied by the forward-looking statements include, but are not
limited to: competitive products and pricing; availability and
costs of critical components and materials; new product development
and commercialization; order activity and demand from major
customers; unanticipated disruption to equipment, facilities, or
operations; facility expansions and new plant start-up costs; our
ability to pace capital spending to anticipated levels of customer
demand; the amount and timing of our cash flows and earnings and
other conditions, which may affect our ability to pay our quarterly
dividend at the planned level or to repurchase shares at planned
levels; our capital allocation plans, as such plans may change
including with respect to the timing and size of share repurchases,
acquisitions, joint ventures, dispositions and other strategic
actions; and the effectiveness of our risk management
framework.
For a complete listing of risks and other factors,
please reference the risk factors and forward-looking statements
described in the annual reports on Form 10-K and quarterly reports
on Form 10-Q.
Digital Media
Disclosure
In accordance with guidance provided by the SEC regarding the use
of company websites and social media channels to disclose material
information, Corning Incorporated ("Corning") wishes to notify
investors, media, and other interested parties that it intends to
use its website
(http://www.corning.com/worldwide/en/about-us/news-events.html) to
publish important information about the company, including
information that may be deemed material to investors. The list of
websites and social media channels that the company uses may be
updated on Corning's media and website from time to time. Corning
encourages investors, media, and other interested parties to review
the information Corning may publish through its website and social
media channels as described above, in addition to the company's SEC
filings, press releases, conference calls, and webcasts.
About Corning
Incorporated
Corning (www.corning.com) is one of the world's leading innovators
in materials science. For more than 160 years, Corning has applied
its unparalleled expertise in specialty glass, ceramics, and
optical physics to develop products that have created new
industries and transformed people's lives. Corning succeeds through
sustained investment in R&D, a unique combination of material
and process innovation, and close collaboration with customers to
solve tough technology challenges. Corning's businesses and markets
are constantly evolving. Today, Corning's products enable diverse
industries such as consumer electronics, telecommunications,
transportation, and life sciences. They include damage-resistant
cover glass for smartphones and tablets; precision glass for
advanced displays; optical fiber, wireless technologies, and
connectivity solutions for high-speed communications networks;
trusted products that accelerate drug discovery and manufacturing;
and emissions-control products for cars, trucks, and off-road
vehicles.
Media Relations
Contact:
Daniel Collins
(607)
974-4197
collinsdf@corning.com
Investor Relations Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
Q1 2017 Financial Tables
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
Corning (NYSE:GLW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Corning (NYSE:GLW)
Historical Stock Chart
From Apr 2023 to Apr 2024