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Innovation key to company's long-standing
success
CORNING, N.Y., February 7,
2014 - Corning Incorporated (NYSE: GLW) has delivered
on its commitment to improve earnings and is now focused on
creating the company's next growth surge, Wendell P. Weeks,
chairman, chief executive officer, and president, told attendees at
the company's annual investor meeting today in New York City.
Weeks briefly reviewed performance highlights from
2013, including delivering five consecutive quarters of core
earnings-per-share growth, outperforming major competitors, and
acquiring full ownership of Samsung Corning Precision Materials,
Co., Ltd. Weeks also noted that the company was honoring its
commitment to return cash to shareholders by doubling the dividend
payment and repurchasing 13% of outstanding shares since October
2011.
"We did what we said we were going to do. We
restored earnings growth," said Weeks. "Now we need to create
Corning's next growth surge. Fortunately, this is familiar
territory to us and we're armed with the right tools."
He shared examples of past innovations that have
transformed industries and created long-term advantages for
Corning, including glass ceramics, low-loss optical fiber, and LCD
glass substrates. He noted that all Corning innovations share
fundamental ingredients: a really tough problem, a combination of
materials and process innovation, and a solution that makes a real
difference in people's lives.
"Our track record also reflects a culture that is
committed to research and development - because we understand that
our investments in innovation create Corning's future revenue
drivers. And we continue to apply that strategy and philosophy
today," Weeks said.
He told investors that Corning has made
significant progress on bringing to life the world depicted in the
viral video, "A Day Made of Glass." Weeks highlighted these key
technologies and market opportunities:
-
Corning's ONE(TM) Wireless Optical Distributed
Antenna System (DAS) enables high-bandwidth, robust and reliable
wireless connectivity - even in tough indoor environments like
convention centers and sports stadiums. With less than 10% of the
approximately five million commercial buildings in the United
States currently utilizing DAS systems, this could be a large
opportunity for the company.
-
Corning® Willow® Glass, an ultra-slim, flexible
glass that is thinner than a dollar bill, is positioned to
participate in a significant way in the growth of the flexible
displays market, which is expected to reach nearly 800 million
units in 2020.
-
Corning recently introduced the world's first
antimicrobial cover glass that inhibits the growth of microbes on
touch devices at CES 2014. With approximately 1.3 billion touch
devices in use today, this could be a very large opportunity for
Corning.
-
With Corning's investment and collaboration, View,
Inc., is developing a dynamic architectural glass that can
significantly lower energy costs. This work with View could address
a significant portion of the more than 25 billion square foot
commercial windows market.
A culture of
innovation
Dr. David L. Morse, executive vice president and chief technology
officer, continued Corning's theme of life-changing innovation by
noting the company's unique capability of developing proprietary
manufacturing processes that provide an additional competitive
edge. "Developing manufacturing processes and life-changing
products, as we have done repeatedly throughout our history,
requires a unique organization, capabilities, and culture. Our
secret isn't one competency or capability. It's the integrated
combination that powers Corning innovation," he said.
Morse explained that Corning's Emerging
Innovations Group is focused on new revenue streams by extending
current products into new markets. He pointed out that Corning is
not only providing Corning® Gorilla® Glass for a high-end
automotive application, "We are also collaborating with
industry-leading auto glazers to bring Gorilla Glass to more
mainstream vehicles. At nearly six billion square feet of glass
consumed annually, it is a sizeable opportunity." The company
expects to announce some of these new relationships in the near
future. Corning is also looking to extend Gorilla Glass into
additional transportation applications including rail and
aviation.
Morse noted that Corning has entered into
collaborations with both SnapCab® Elevator Interior Systems and
Elevecture LP, to use Gorilla Glass in modular wall systems,
including elevator walls, lobbies, and conference rooms. He also
highlighted new business opportunities secured with Egan Visual,
Krystal(TM) Writing Boards, Inc., and MooreCo, Inc., on marker
boards featuring Gorilla Glass.
Glass
Technologies
James P. Clappin, president of Corning Glass Technologies,
reinforced the critical competitive advantage that the company's
proprietary fusion platform plays in driving future opportunities.
In reviewing the recently closed acquisition of Corning Precision
Materials Korea, Co., Ltd., Clappin noted, "Having these flexible
fusion assets enable us to be the leading and lowest-cost producer
of specialty glasses specifically designed for a broad range of
applications. This business is expected to add approximately $350
million incremental profit this year.
"We are optimistic about the growth outlook for
our LCD glass, given the increase in the worldwide installed TV
base, a faster replacement cycle for flat panel televisions, larger
screens, and introduction of technologies such as ultra-high
definition TVs," he stated.
Clappin also pointed out that Corning Lotus(TM)
Glass is positioned to capture growth in the high-performance
display arena, which is expected to grow by 35% on average over the
next several years. Corning's Lotus glass is optimized to meet the
demanding manufacturing processes of higher-resolution LCD or OLED
displays.
In the cover glass market, "We expect healthy
growth for cover glass from smartphones, tablets, and touch panels
for notebook computers," he noted. "In area terms, we expect the
total cover glass market to almost double in the next few years,
and with that, we expect our overall volume and revenue growth to
be significant."
Optical
Communications
Optical solutions will continue driving profitable growth for
Corning's Optical Communications segment, Clark S. Kinlin,
executive vice president, told investors. He noted that the scale
and rate of bandwidth growth-driven by video, wireless data, and
cloud computing - are straining data centers and networks.
"Optical-based solutions provide the most cost-effective capacity
and speed to alleviate pressures on the network," Kinlin explained.
He highlighted industry studies that show global IP traffic growing
at 23% per year through 2017, with mobile traffic the
fastest-growing component. "Our solid foundation of optical
components is providing our customers with the necessary integrated
solutions for today's growing variety of network applications," he
added. Kinlin said that the company expects its Optical
Communications segment to grow twice as fast as the overall
industry in 2014.
Environmental Technologies
and Life Sciences
Tighter environmental emissions standards in China and Europe are
happening and could drive a compound growth rate between 15% and
20% for Corning's heavy-duty diesel products through 2017, Mark A.
Beck, executive vice president for Environmental Technologies and
Life Sciences segments, told investors.
For the automotive market, Corning is launching a
new fast-light-off substrate and already providing samples to major
automotive customers. "Our innovation reduces start-up emissions,
improves fuel efficiency, and reduces overall system costs," Beck
explained.
In reviewing the Life Sciences segment, Beck said
that Corning expects to see steady growth from its base businesses,
and innovation programs to play an increasing role in delivering
new products for the growing area of biologics and cell-based
therapies.
Financial
Health
James B. Flaws, vice chairman and chief financial officer, pointed
out that Dow Corning Corporation, of which Corning is a 50% equity
owner, remains the global leader of specialty chemicals and retains
a unique technology set and innovation portfolio. "We expect Dow
Corning's silicone sales to improve on a year-over-year basis in
the low-single digit level as the global economy improves. We
anticipate Hemlock Semiconductor sales will increase by about 20%.
Dow Corning's net income is expected to be up 20% to 30% year over
year, driven by an improved cost basis."
Additionally, he provided an update on the
integration of Corning Precision Materials (formerly Samsung
Corning Precision Materials Co., Ltd.), noting that the business is
expected to add approximately $2 billion in additional Display
Technologies segment sales this year.
Flaws concluded the formal presentation by saying,
"Our combination of increased earnings and shareholder returns is
delivering significant value for investors."
He added, "Corning has a 163-year history of
developing products that have created new industries and
transformed people's lives. We believe our unique capabilities,
collaborative culture, and passion for innovation will lead to
future growth and long-term sustainability."
Conference Broadcast
Information
Corning's annual investor meeting is being held on Friday, Feb. 7
at Cipriani, located at 110 E. 42nd Street, New
York. Corning's products and technologies will be on display from 8
a.m. until 9:30 a.m. EST. 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 at
9:30 a.m. EST. The dial-in number is 877-710-0209 (U.S.) or
315-625-3068 (International). The call title is Corning
Incorporated 2014 Investor Meeting. A replay of the call will be
available at 2 p.m. EST and will run through 5 p.m. EST on Tuesday,
Feb. 11, 2014. To access the replay, dial 855-859-2056 or
800-585-8367 (U.S.) or 404-537-3406 (International). The
confirmation code is 14794808. 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
www.corning.com/investor_relations and clicking "Financial Reports"
on the left. These reconciliations also accompany this news
release.
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 or financial instability, natural
disasters, adverse weather conditions, 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; retention of key
personnel; 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.
About Corning
Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 160 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.
Media Relations
Contact:
Daniel F. Collins
(607) 974-4197
collinsdf@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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
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