Results establish excellent start to another year of
expected strong sales and earnings growth
CORNING, N.Y.; APRIL 30, 2019 -
Corning Incorporated (NYSE: GLW) today announced results for its
first-quarter 2019 ended March 31, 2019.
News Summary:
-
Excellent first-quarter results established
strong start to 2019
-
GAAP sales of $2.8 billion and core sales of
$2.9 billion increased 12% and 13%, respectively, year over
year
-
GAAP EPS of $0.55 increased $1.27 versus 2018,
reflecting a non-cash, mark-to-market gain associated with the
company's currency-hedging contracts
-
Core EPS grew to $0.40, a 29% year-over-year
increase, reflecting sales and earnings growth across all business
segments
-
Ongoing technology and manufacturing investments
drive additional growth in 2019
-
Continued growth expected in Optical
Communications, Specialty Materials, Environmental Technologies,
and Life Sciences business segments
-
Display Technologies continues to deliver stable
returns, with first-quarter sales and net income up double digits
year over year, and the best first-quarter glass pricing
environment in well over a decade
-
On track to achieve goals of
2016-2019 Strategy and Capital Allocation Framework
-
Returned $414 million to shareholders in
first-quarter 2019, for a total of $12.3 billion since the
Framework's introduction
-
Investing to position businesses for short- and
long-term sales growth
"We built on our 2018 momentum by delivering double-digit sales and
earnings growth in the first quarter. Our investments in product
development and manufacturing capacity delivered sales and profit
growth in all our markets, and we're confident that Corning is
positioned to create additional value," said Wendell P. Weeks,
chairman, chief executive officer, and president.
"In October 2015 we outlined a Strategic Framework
to focus our portfolio, extend our market leadership, and increase
shareholder returns. Having delivered another strong quarter, the
benefits of our investments continue to be evident in our financial
performance and we are within striking distance of fully delivering
on the goals of this Framework."
Strategy and Capital Allocation
Framework Progress
Corning's Framework outlines the company's
leadership priorities. Under the Framework, Corning plans to
deliver more than $12.5 billion to shareholders while investing
$10 billion in growth opportunities. Since announcing the
Framework, the company has returned $12.3 billion to shareholders,
including $414 million in first-quarter 2019.
"We expect to maintain momentum by continuing to
invest in our focused and cohesive portfolio to drive growth,"
Weeks continued. "During the first quarter, progress on
commercializing our innovations demonstrates clear leadership
across our market-access platforms, as well as alignment with
important industry trends." Highlights include:
-
Optical Communications: earned global industry
recognition for product and technology innovations, including
RocketRibbon(TM) high density cable, which enables up to 30 percent
faster fiber installation in hyperscale data centers, and
ClearTrack(TM) fiber-to-the-chip solutions that enable fast and
easy fiber-optic installation with minimal disruption for tenants
in multi-dwelling units;
-
Automotive: ramped capacity of
DuraTrap® GC filters to
meet accelerating gasoline particulate filter (GPF) demand;
garnered strong customer engagement with industry's first
AutoGradeTM cover glass
solutions for automotive interiors, extending Corning's
Gorilla® Glass for
Automotive portfolio;
-
Mobile Consumer Electronics: continued progress
on goal of doubling sales over the next several years with adoption
of premium glass and other innovative solutions for smartphones,
laptops, tablets, and wearables; launched the Amplify line of glass
screen protectors with Otterbox; and gained traction in emerging
regions with several device launches in India and Turkey;
-
Life Sciences Vessels: growth exceeded market,
fueled by leadership in cell-culture solutions; continued to
advance toward FDA approval of Valor® glass
packaging with key pharmaceutical development partners.
In addition, during the first quarter Corning announced 518 U.S.
patents issued in 2018; strengthening the company's leadership in
glass, ceramics, optical physics, and proprietary manufacturing
technology.
First-Quarter 2019 Results and
Comparisons
(In millions, except per-share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2019 |
|
Q4 2018 |
|
%
change |
|
Q1 2018 |
|
%
change |
GAAP
Net Sales |
$ |
2,812 |
|
$ |
3,035 |
|
(7%) |
|
$ |
2,500 |
|
12% |
GAAP
Net Income (Loss) |
$ |
499 |
|
$ |
292 |
|
71% |
|
$ |
(589) |
|
** |
GAAP
EPS |
$ |
0.55 |
|
$ |
0.32 |
|
72% |
|
$ |
(0.72) |
|
** |
Core
Sales* |
$ |
2,850 |
|
$ |
3,081 |
|
(7%) |
|
$ |
2,513 |
|
13% |
Core
Earnings* |
$ |
365 |
|
$ |
539 |
|
(32%) |
|
$ |
299 |
|
22% |
Core EPS* |
$ |
0.40 |
|
$ |
0.59 |
|
(32%) |
|
$ |
0.31 |
|
29% |
*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.
**Not meaningful
Segment Results and
Outlook
"We had an excellent first quarter, with strong
performance across the company. We increased earnings per share by
29% and four of our five segments achieved double-digit sales
growth year over year," said Tony Tripeny, executive vice president
and chief financial officer.
"This strong growth resulted from our technology
and manufacturing leadership. We are benefitting from recent
investments including expansions for optical fiber and cable; Gen
10.5 display glass; gasoline particulate filters; and multiple
development projects such as Gorilla® Glass for
mobile devices and automotive. We continue to invest, and we expect
to grow sales significantly in 2019 and beyond."
Display Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2019 |
|
Q4 2018 |
|
%
change |
|
Q1 2018 |
|
%
change |
Net
Sales |
$ |
818 |
|
$ |
899 |
|
(9%) |
|
$ |
745 |
|
10% |
Net
Income Before Tax |
$ |
263 |
|
$ |
304 |
|
(13%) |
|
$ |
234 |
|
12% |
Net Income |
$ |
208 |
|
$ |
240 |
|
(13%) |
|
$ |
185 |
|
12% |
In Display Technologies, first-quarter net sales were $818 million,
up 10%, and net income increased by 12% year over year. Display
glass market first-quarter volume grew by a mid-single digit
percentage year over year and Corning's volume grew faster, as
expected.
First-quarter Display Technologies sequential
glass price declines were moderate and the most favorable first
quarter in well over a decade. Second-quarter sequential price
declines are expected to remain moderate. Full-year 2019
price declines are expected to improve further to a mid-single
digit percentage and to be better than in 2018.
Corning expects full-year 2019 display glass
market volume to increase by a mid-single digit percentage year
over year. The company expects its own display glass volume to grow
faster than the market, driven by the ramp of its Gen 10.5 facility
production.
Optical Communications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2019 |
|
Q4 2018 |
|
%
change |
|
Q1 2018 |
|
%
change |
Net
Sales |
$ |
1,064 |
|
$ |
1,166 |
|
(9%) |
|
$ |
886 |
|
20% |
Net
Income Before Tax |
$ |
181 |
|
$ |
217 |
|
(17%) |
|
$ |
139 |
|
30% |
Net Income |
$ |
142 |
|
$ |
165 |
|
(14%) |
|
$ |
109 |
|
30% |
Optical Communications first-quarter sales were
$1.06 billion, up 20% over the prior year. Net income for the first
quarter was up 30% year over year. Sales growth was driven by data
center and carrier business as well as sales from the recently
acquired 3M Communication Markets Division.
The business remains on track to surpass its
goal of $5 billion in 2020 sales, with continued growth beyond. For
full-year 2019, Optical Communications year-over-year sales growth
is now expected to be up approximately 10%, revised from the
company's previous expectation of a low-teens percentage. This
revision is the result of one major fiber-to-the-home customer
shifting its deployment from homes passed to homes connected by one
quarter earlier than expected. Optical Communications continues to
grow faster than the overall market as demand for the company's
fiber, cable, and connectivity solutions remain strong around the
world.
Environmental
Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2019 |
|
Q4 2018 |
|
%
change |
|
Q1 2018 |
|
%
change |
Net
Sales |
$ |
362 |
|
$ |
319 |
|
13% |
|
$ |
322 |
|
12% |
Net
Income Before Tax |
$ |
70 |
|
$ |
53 |
|
32% |
|
$ |
66 |
|
6% |
Net Income |
$ |
55 |
|
$ |
42 |
|
31% |
|
$ |
52 |
|
6% |
Environmental Technologies first-quarter sales were $362 million,
up 12% year over year, driven by accelerating adoption of gasoline
particulate filters and growth in heavy-duty diesel. Net income
grew 6% year over year.
Full-year 2019 Environmental Technologies sales
are now expected to increase by 10% or slightly more year over
year, higher than the company's previous expectation of high-single
digit growth, driven largely by acceleration in demand for
Corning's gasoline particulate filters.
Specialty Materials:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2019 |
|
Q4 2018 |
|
%
change |
|
Q1 2018 |
|
%
change |
Net
Sales |
$ |
309 |
|
$ |
399 |
|
(23%) |
|
$ |
278 |
|
11% |
Net
Income Before Tax |
$ |
62 |
|
$ |
110 |
|
(44%) |
|
$ |
58 |
|
7% |
Net Income |
$ |
49 |
|
$ |
87 |
|
(44%) |
|
$ |
46 |
|
7% |
Specialty Materials first-quarter sales were $309 million, up 11%
year over year, driven by continued strong demand for the company's
portfolio of mobile consumer electronics glass solutions. Net
income grew 7% year over year.
Corning expects Specialty Materials to grow sales
year over year in 2019, with the level dependent upon the adoption
rate of Corning's innovations.
Life Sciences:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2019 |
|
Q4 2018 |
|
%
change |
|
Q1 2018 |
|
%
change |
Net
Sales |
$ |
243 |
|
$ |
238 |
|
2% |
|
$ |
232 |
|
5% |
Net
Income Before Tax |
$ |
39 |
|
$ |
37 |
|
5% |
|
$ |
34 |
|
15% |
Net Income |
$ |
31 |
|
$ |
29 |
|
7% |
|
$ |
27 |
|
15% |
Life Sciences had a strong start to the year with first-quarter
sales of $243 million, up 5% year over year and net income up 15%
year over year.
For the full-year 2019, Corning expects Life
Sciences to generate sales growth of a low to mid-single digit
percentage, as the business continues to outpace the market growth
rate.
Upcoming Investor
Events
Corning will hold its annual meeting of shareholders at the Corning
Museum of Glass auditorium on Thursday, May 2, 2019, at 11 a.m.
EST. A live audio webcast will be available the day of the event.
To access the audio webcast, please go to Corning's investor
relations website at investor.corning.com, click "Events and
Presentations" under the "News and Events" tab and select 2019
Annual Meeting of Shareholders.
On May 15, Corning will participate in the
47th Annual J.P.
Morgan Global Technology, Media and Communications Conference in
Boston.
Corning plans to host its 2019 investor meeting at
The Conrad New York in New York City on Friday, June 14. To
register for this event please go to Corning's investor relations
website at investor.corning.com, click "Events and Presentations"
under the "News and Events" tab and select Investor Day 2019.
First-Quarter Conference Call
Information
The company will host a first-quarter conference call on Tuesday,
April 30, at 8:30 a.m. ET. To participate, please call toll free
(800) 230-1059 or for international access call (612) 234-9959
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
http://www.corning.com/investor_relations, click "Events" and
follow the instructions.
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. Definitions of these non-GAAP
financial measures and reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures
can be found on the Company's website by going to the Investor
Relations page and clicking "Quarterly Results" under the
"Financials and Filings" tab. These reconciliations also accompany
this news release.
Caution Concerning
Forward-Looking Statements
The statements contained in this release that are not historical
facts or information and contain words such as "will," "believe,"
"anticipate," "expect," "intend," "plan," "seek," "see," "would,"
and "target" and similar expressions are forward-looking
statements. These forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and include estimates and assumptions related to
economic, competitive and legislative developments. Such statements
relate to future events that by their nature address matters that
are, to different degrees, uncertain. These estimates are subject
to change and uncertainty which are, in many instances, beyond our
control. There can be no assurance that future developments will be
in accordance with management's expectations. Actual results could
differ materially from those expected by us, depending on the
outcome of various factors. We do 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: the effects of acquisitions, dispositions
and other similar transactions, global business, financial,
economic and political conditions; tariffs and import duties;
currency fluctuations between the U.S. dollar and other currencies,
primarily the Japanese yen, euro, Chinese yuan and South Korean
won; product demand and industry capacity; competitive products and
pricing; availability and costs of critical components and
materials; new product development and commercialization; order
activity and demand from major customers; 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; possible disruption in
commercial activities due to terrorist activity, cyber-attack,
armed conflict, political or financial instability, natural
disasters, or major health concerns; unanticipated disruption to
equipment, facilities, IT systems or operations; effect of
regulatory and legal developments; ability to pace capital spending
to anticipated levels of customer demand; rate of technology
change; ability to enforce patents and protect intellectual
property and trade secrets; adverse litigation; product and
components performance issues; retention of key personnel; customer
ability, most notably in the Display Technologies segment, to
maintain profitable operations and obtain financing to fund their
ongoing operations and manufacturing expansions and pay their
receivables when due; loss of significant customers; changes in tax
laws and regulations including the Tax Cuts and Jobs Act of 2017;
the impacts of audits by taxing authorities; and the potential
impact of legislation, government regulations, and other government
action and investigations.
For a complete listing of risks and other factors,
please reference the risk factors and forward-looking statements
described in our annual reports on Form 10-K and quarterly reports
on Form 10-Q.
Web 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 uses 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, or
supplemental to information contained in this or other press
releases. 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, with a more than 165-year track record of
life-changing inventions. Corning applies its unparalleled
expertise in glass science, ceramic science, and optical physics
along with its deep manufacturing and engineering capabilities to
develop category-defining products that transform industries and
enhance people's lives. Corning succeeds through sustained
investment in RD&E, a unique combination of material and
process innovation, and deep, trust-based relationships with
customers who are global leaders in their industries.
Corning's capabilities are versatile and
synergistic, which allows the company to evolve to meet changing
market needs, while also helping our customers capture new
opportunities in dynamic industries. Today, Corning's markets
include optical communications, mobile consumer electronics,
display technology, automotive, and life sciences vessels.
Corning's industry-leading products include damage-resistant cover
glass for mobile devices; precision glass for advanced displays;
optical fiber, wireless technologies, and connectivity solutions
for state-of-the-art communications networks; trusted products to
accelerate drug discovery and delivery; and clean-air technologies
for cars and trucks.
Media Relations
Contact:
M. Elizabeth
Dann
(607)
974-4989
dannme@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
2019 Q1 PR Financials
This
announcement is distributed by West Corporation on behalf of West
Corporation 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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