Hard hit by slowing global economies, Corning Incorporated
(NYSE:GLW) is prepared for a prolonged recession, �but well
positioned in key growth markets to take advantage of opportunities
when the economy turns,� Wendell P. Weeks, chairman and chief
executive officer, will tell more than 200 analysts and investors
attending the company�s annual investor conference at
TheTimesCenter in New York. The meeting begins at 9 a.m. today.
�We are prepared for lower sales and earnings this year, with a
conservative capital structure, ample liquidity, and a goal of
generating positive free cash flow for the year,� Weeks will say.
At the same time, he will explain that the company is continuing to
invest in a portfolio of innovative products such as Gen 10 LCD
glass, ClearCurve� optical fiber for next-generation data centers,
DuraTrap� emissions-control solutions, and highly scratch-resistant
Gorilla� glass for computer and portable device applications.
�After all,� he will say, �we are in the midst of a recession,
not an industry collapse. We believe we are on the right side of
the technology substitution curve and the technology leader in all
of our core markets. Liquid crystal display is the winning TV
technology, optical fiber is the only choice for the expansion of
high-speed telecommunications networks and there is no turning back
in the demand for clean air.�
Rings of Defense
Peter F. Volanakis, president and chief operating officer, will
remind investors that last month the company announced
restructuring plans to bring about $150 million to $200 million in
annual cost savings. �As economic uncertainty increased, we took
decisive action to realign our operations beginning in the third
quarter of last year,� he will point out. Volanakis will explain
that in the third quarter, Corning implemented discretionary
spending controls, implemented a hiring freeze, and adjusted
manufacturing schedules to manage inventories. By the fourth
quarter, the company implemented some workforce reductions and
eliminated temporary and contract worker positions, extended
manufacturing shutdowns, and implemented zero-based capital
budgeting for 2009. In late January, Corning announced it would
reduce its workforce by 3,500 full-time positions, suspend salaried
merit increases, and begin consolidating some manufacturing
operations.
�We are committed to preserving the financial health of the
company,� he will say. �These actions will result in a $115 million
to $165 million pretax restructuring charge in the first quarter
this year, and we will take additional actions if we do not see an
improvement in our sales in the second quarter.� He will point out
that the company has already consolidated manufacturing in its Life
Sciences, Environmental Technologies, and Telecommunications
segments, and is considering further actions.
Technology Innovations
Corning plans to spend about $630 million on research,
development, and engineering in 2009, Dr. Joseph A. Miller,
executive vice president and chief technology officer, will add.
�Even in these difficult times, our commitment to the development
of technological breakthroughs continues,� Miller will explain. He
will review progress made with Corning�s Gorilla glass for portable
display devices and its extension into the notebook computer and
desk-top monitor space; advances with Corning�s Epic� System and
cell culture solutions; establishment of manufacturing processes
for green lasers for microprojection in anticipation of 2009 sales;
advances in mercury abatement for coal-fired power plants; and
delivery of customer samples of thin-film photovoltaics for
solar-powered energy solutions. �We have a number of promising new
business opportunities on the cusp of commercialization while we
continue to explore new ideas, technologies and opportunities in
specialty glass and ceramics,� Miller will say.
Environmental Technologies
The company�s long-term prospects for success in the automotive
and diesel emissions control markets remain strong, Thomas R.
Hinman, senior vice president, Environmental Technologies, will
remark. �We see the opportunity for significant growth when the
economy recovers.�
He will point out that Corning remains in a market-leading
position with its deep experience and strong market access in sales
of light-duty automotive substrates, adding, �However, even with an
economic recovery, we do not expect to see a return to as robust a
market as we have seen in recent years. We also believe that the
recovery is likely to be led by growth in emerging markets, rather
than in the U.S. or Europe.�
Hinman will note that while overall heavy-duty truck production
remains at historically low levels, future emissions regulations
coming into effect in the U.S., Europe, and Japan could create a
$600 million to $700 million global market for heavy-duty emissions
controls (commercial trucks and buses) by 2012. �We believe we have
a competitive edge with our Corning DuraTrap� aluminum titanate and
advanced cordierite filters. Additionally, there is broad market
acceptance for our DuraTrap aluminum titanate filters in the
light-duty diesel market,� he will comment. Finally, he will point
out that the light-duty diesel (passenger cars and trucks) global
market could be a $1 billion opportunity by 2012, driven by
increased regulations and consumer interest in clean engine
solutions.
Telecommunications
Expecting a smaller optical fiber, cable, and hardware and
equipment market in 2009 compared to last year, the company
believes that continued innovation will enable future growth for
Corning. �Optical fiber is winning,� Clark S. Kinlin, president and
chief executive officer of Corning Cable Systems, will state. �The
substitution of fiber over copper lines continues as bandwidth
requirements in individual homes grow. Our ClearCurve product
portfolio provides solutions for delivering high-speed bandwidth
into the most challenging locations such as high-rise apartments
and, soon, tight-fitting data center applications. These
revolutionary technologies allow us to expand our leadership in the
growing fiber to the home and enterprise network markets.�
Display Technologies
Corning expects that the contraction in the global LCD supply
chain will ease by the end of the first quarter and overall demand
will increase in the second quarter, leading to a stronger second
half of the year. �We expect volume in the first quarter to decline
20% to 25% sequentially as the supply chain contraction continues,�
James P. Clappin, president, Display Technologies Asia, will say.
He�ll also note that Corning has reduced its own glass production
by more than 50% and its equity venture, Samsung Corning Precision
Glass Co., Ltd., has idled more than 25% of its capacity.
�We believe that the 2009 LCD glass market will be about two
billion square feet, flat with last year,� he will note. Corning
expects that there will be an overall decline this year in LCD
monitor sales driven by the lower economy and notebook computers
gaining market share. He will explain that LCD televisions will
continue to gain share in the global TV market as CRT popularity
and availability decline. Overall, LCD televisions will exceed 50%
of annual TV sales in 2009, the company believes. Clappin will
point out that the worldwide installed base of televisions is about
two billion sets and less than 15% are LCD, �so there remains a
very large substitution base and future opportunity. A 1% increase
in global market penetration for LCD televisions represents more
than 200 million square feet in additional glass demand,� he will
add.
Financial Outlook
James B. Flaws, vice chairman and chief financial officer, will
tell investors that the company has designed its financial plan on
a sales cycle that would result in about $5 billion of sales in
2009. �Our first-quarter run rate will be less than $1 billion as
we continue to grapple with the realities of the recession,� he
will say. �As we explained, we are expecting significant
improvement in LCD glass demand in the second quarter, leading to
stronger demand in the second half of this year. If this
improvement doesn�t occur, we are prepared to take additional
restructuring actions to ensure the financial health of the
company.�
He will point out that the company has prepared for the
possibility of a prolonged recession with $2.8 billion in cash and
short-term investments at yearend 2008, compared to only $1.6
billion in debt, 15% which is due in the next four years. The
company has also significantly reduced its capital spending and
suspended share repurchases to preserve cash.
�This will be a challenging year;� Flaws will tell investors,
�but the long-term growth drivers for our business are intact. We
believe the new technologies in our labs today will provide
exciting future commercial opportunities for Corning.�
Conference Broadcast Information
Corning will make the presentation at its annual investor
conference available to the public through a video and audio
webcast and telephone access. The broadcast will begin Friday, Feb.
6, 2009 at 9 a.m. ET. The dial-in number is (800) 230-1766 (U.S.)
or (612) 332-0107 (international). The password is 09 Analyst
Meeting. The leader is Sofio. A replay of the call will be
available at 1 p.m. ET and will run through 5 p.m. ET on Friday,
Feb. 27, 2009. To access the replay, dial (800) 475-6701 (U.S.) or
(320) 365-3844 (international). The passcode is 984725. The audio
webcast will be archived for one year following the call.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 150 years of
materials science and process engineering knowledge, Corning
creates and makes keystone components that enable high-technology
systems for consumer electronics, mobile emissions control,
telecommunications, and life sciences. Our products include glass
substrates for LCD televisions, computer monitors, and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug discovery;
and other advanced optics and specialty glass solutions for a
number of industries including semiconductor, aerospace, defense,
astronomy, and metrology.
Forward-Looking and Cautionary Statements
This press release contains �forward-looking statements� (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning�s financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic, and business
conditions;�conditions in the�financial and credit
markets;�currency fluctuations;�tax rates; product demand and
industry capacity; competition; reliance on a concentrated customer
base; manufacturing efficiencies; cost reductions; availability of
critical components and materials; new product commercialization;
pricing fluctuations�and�changes in the mix of sales between
premium and non-premium products; new plant start-up�or
restructuring�costs; possible disruption in commercial activities
due to terrorist activity, armed conflict, political instability,
or major health concerns; adequacy of insurance; equity company
activities; acquisition and divestiture activities; the level of
excess or obsolete inventory; the rate of technology change; the
ability to enforce patents; product and components performance
issues; stock price fluctuations; and adverse litigation or
regulatory developments.�These and other�risk factors
are�detailed�in Corning�s filings with the Securities and Exchange
Commission. Forward-looking statements speak only as of the day
that they are made, and Corning undertakes no obligation to update
them in light of new information or future events.
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
