![](https://hugin.info/155653/I/2016980/103976.jpg)
Raises projected shareholder distributions through 2019
to
more than $12.5
billion
CORNING, N.Y., JUNE 1, 2016 - Corning
Incorporated (NYSE: GLW) today announced that it has completed the
previously announced strategic realignment of its ownership
interest in Dow Corning Corporation. Corning has exchanged its 50%
interest in Dow Corning for a newly formed company that holds
approximately a 40% interest in Hemlock Semiconductor Group and
$4.8 billion in cash. Corning received a private letter ruling from
the Internal Revenue Service that supports the substantially
tax-free nature of the transaction.
"The closing of this transaction unlocks
significant value for Corning shareholders. The $4.8 billion
in cash is the equivalent of approximately 30 times the annual
equity earnings of Dow Corning's silicones business. The freedom to
deploy that capital is a tremendous value driver for our
shareholders," said Wendell P. Weeks, chairman, chief executive
officer, and president.
"We thank the Dow Corning team for their
contributions and wish them all of the best under the stewardship
of Dow Chemical, which has assumed 100% ownership of Dow Corning,"
Weeks added.
Strategy and Capital Allocation
Framework Update
"Corning's strategy and capital allocation framework defines our
portfolio and underscores our commitment to excellent capital
stewardship. Our strategy increases our return on innovation by
focusing 80% of our resources on our three core technologies, four
manufacturing and engineering platforms, and five market-access
platforms. We sought the realignment of Dow Corning to increase our
focus, and its completion is a significant milestone," said
Weeks.
"We are delighted to be able to continue our
ownership in Hemlock, a leading provider of polycrystalline silicon
used in the manufacturing of semiconductor and solar devices. Our
position in Hemlock allows us to capture the potential upside from
a rebound in the solar market, while also providing market insight
and access for our semiconductor-innovation programs," Weeks
added.
R. Tony Tripeny, senior vice president and chief
financial officer, remarked, "As 2016 unfolds, we see growth
returning across several of our businesses and, longer term, we see
prospects for innovation-driven growth. We expect continuing
moderate sequential LCD glass-price declines and ongoing benefit
from the new hedges we added to reduce our exposure to a weaker
yen. We also look forward to welcoming Alliance Fiber Optic
Products into the Corning family.
"In light of this progress and confidence in our
future operating cash flows, we are increasing the cash we expect
to distribute to shareholders to more than $12.5 billion. This
increase in our projected cumulative cash returns to shareholders
will more than offset the loss of equity earnings from Dow
Corning's silicones business. This increase also underscores our
commitment to capital stewardship, and we will fully deploy these
funds consistent with our capital allocation plan," said
Tripeny.
Between Sept. 30, 2015, and May 31, 2016, Corning
returned approximately $3 billion to shareholders,
repurchasing about 135 million shares, including an accelerated
share repurchase completed in January, and raising the cash
dividend by 12.5% in February.
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.
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 Hemlock
Semiconductor
Hemlock Semiconductor has more than 50 years of experience in the
development, production and global commercialization of
polycrystalline silicon and other silicon-based products used in
the manufacturing of semiconductor devices, and solar cells and
modules. Hemlock Semiconductor has approximately 1,500 employees
and sales of $996 million in 2015. Going forward, Corning will
continue to report Hemlock's results as equity earnings.
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 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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Corning: RSS
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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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