Corning Incorporated (NYSE: GLW) today announced results for its
third quarter ended Sept. 30, 2019. Results are consistent with the
early update issued Sept. 16.
“Corning is successfully taking actions to offset recent
headwinds. At the same time, we remain confident in our strategy
and continue to advance our long-term growth initiatives,” said
Wendell P. Weeks, chairman, chief executive officer, and
president.
“Two recent announcements – an additional $250 million
investment from Apple in Corning’s advanced manufacturing, as well
as FDA approval of Valor Glass packaging for its first commercial
use – are testament to our confidence in Corning’s long-term
outlook.”
News Summary
- Third-quarter results were consistent with Sept. 16 update:
- GAAP sales of $2.9 billion and core sales of $3.0 billion
- GAAP EPS of $0.38 and core EPS of $0.44
- Highlights from the third quarter included:
- Display Technologies continued to experience a favorable
pricing environment and management now expects the full-year price
decline to be a low-single digit percentage, improving from prior
expectation of a low-to-mid single digit percentage decline
- Environmental Technologies sales grew 20% year over year as the
success of the company’s gasoline particulate filter innovation
drove sales well above the underlying auto industry growth rate,
putting the company on track to exceed $200 million in 2019 GPF
sales
- Specialty Materials and Life Sciences also grew sales faster
than their underlying markets, driven by the strength and relevance
of the company’s technology and innovation approach
- Optical Communications advanced 5G innovation with key industry
leaders
- Key actions to offset recent headwinds include:
- Reducing operating expenses
- Aligning capacity in Display to demand
- Idling capacity and pacing capital projects in Optical
Communications
- Continued investments in technology and innovation with
customers led to notable progress, including Apple’s investment and
FDA approval of Corning Valor® Glass for its first commercial
use
Market-Access Platform Progress Corning’s 2020-2023
Strategy & Growth Framework outlines opportunities in each of
the company’s five Market-Access Platforms.
“Our capabilities and strategy are well-aligned with market
drivers, and we continue to advance customer and innovation
initiatives to deliver on our goals,” Weeks said.
In the third quarter, Corning continued to innovate with
industry leaders in each of its markets. Highlights include:
- Automotive: Auto Glass Solutions continues to build its
order book. At next month’s Guangzhou Auto Show, the industry’s
first shaped dual-display module with a single cover glass part
will be showcased in the GAC Aion LX, an electric vehicle. The
module's cover glass is produced using proprietary Corning®
ColdForm™ Technology.
- Optical Communications: Verizon and Corning are
co-innovating at Corning’s optical cable manufacturing facility in
Hickory, North Carolina, to build the 5G factory of the future.
Corning is also collaborating with Intel to accelerate the
availability and deployment of 5G in-building network
solutions.
- Mobile Consumer Electronics: Apple announced an
additional $250 million investment from its Advanced Manufacturing
Fund to support Corning's processes, equipment, and materials
integral to the delivery of next-generation consumer devices.
- Life Sciences Vessels: A leading pharmaceutical
manufacturer has received FDA approval of Corning Valor® Glass for
use as a primary package for a marketed drug product. The approval
marks a major milestone toward future sales.
- Display: Chengdu CEC Panda Display Technology Co., Ltd.,
(CCPD) selected Corning® Astra™ Glass, which is optimized for the
growing oxide display market and enables high-performance tablets,
notebooks, and 8K TVs.
Third-Quarter 2019 Results and Comparisons (In millions,
except per-share amounts)
|
Q3 2019 |
|
Q2 2019 |
|
% change |
|
Q3 2018 |
|
% change |
GAAP Net
Sales |
$ |
2,934 |
|
$ |
2,940 |
|
(0%) |
|
$ |
3,008 |
|
(2%) |
GAAP Net
Income |
$ |
337 |
|
$ |
92 |
|
266% |
|
$ |
625 |
|
(46%) |
GAAP EPS |
$ |
0.38 |
|
$ |
0.09 |
|
322% |
|
$ |
0.67 |
|
(43%) |
Core Sales* |
$ |
2,969 |
|
$ |
2,986 |
|
(1%) |
|
$ |
3,045 |
|
(2%) |
Core Net
Income** |
$ |
397 |
|
$ |
410 |
|
(3%) |
|
$ |
476 |
|
(17%) |
Core EPS* |
$ |
0.44 |
|
$ |
0.45 |
|
(2%) |
|
$ |
0.51 |
|
(14%) |
*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.**Effective July 1, 2019, we have replaced the term “Core
Earnings” with “Core Net Income.” The terms are interchangeable,
and the underlying calculations remain the same.
Segment Results and Outlook “In the third quarter, we
acted quickly to address changing market conditions, we met our
revised targets, and we continued our actions to advance our
long-term growth plans,” said Tony Tripeny, executive vice
president and chief financial officer.
“We are operating on the strong foundation that we built over
the past four years, and we’re making progress in key areas as
evidenced by our ongoing customer announcements. This makes us
confident in our ability to achieve the objectives we laid out in
our 2020 to 2023 Strategy & Growth Framework,” Tripeny
added.
Display Technologies:
|
Q3 2019 |
|
Q2 2019 |
|
% change |
|
Q3 2018 |
|
% change |
Net Sales |
$ |
793 |
|
$ |
848 |
|
(6%) |
|
$ |
852 |
|
(7%) |
Net Income
Before Tax |
$ |
234 |
|
$ |
268 |
|
(13%) |
|
$ |
275 |
|
(15%) |
Net Income |
$ |
185 |
|
$ |
213 |
|
(13%) |
|
$ |
218 |
|
(15%) |
Display Technologies third-quarter sales were $793 million and
net income was $185 million. Display glass volume declined by a
high-single digit percentage sequentially, consistent with the
Sept. 16 update.
Third-quarter glass prices were consistent with the second
quarter. Fourth-quarter glass prices are expected to decline
slightly sequentially. As a result, the full-year 2019 price
decline is expected to improve to a low-single digit percentage
versus prior expectations of a low-to-mid single digit percentage
decline.
Corning continues to expect full-year Display glass volume to
grow slightly, with fourth-quarter Display glass volume expected to
decline by a mid-single digit percentage sequentially. The
company’s ramp-up of its Gen 10.5 manufacturing capacity accounts
for Display growing faster than the overall display glass market
for 2019.
Optical Communications:
|
Q3 2019 |
|
Q2 2019 |
|
% change |
|
Q3 2018 |
|
% change |
Net Sales |
$ |
1,007 |
|
$ |
1,090 |
|
(8%) |
|
$ |
1,117 |
|
(10%) |
Net Income
Before Tax |
$ |
162 |
|
$ |
201 |
|
(19%) |
|
$ |
214 |
|
(24%) |
Net Income |
$ |
127 |
|
$ |
158 |
|
(20%) |
|
$ |
168 |
|
(24%) |
Optical Communications sales were $1 billion and net income was
$127 million. Sales declined sequentially and year over year. As
described in the company’s Sept. 16 update, declines resulted from
overall market weakness driven by customer project spending
decisions, primarily in carrier networks.
Management continues to expect full-year sales to decline 3% to
5% versus 2018.
Environmental Technologies:
|
Q3 2019 |
|
Q2 2019 |
|
% change |
|
Q3 2018 |
|
% change |
Net Sales |
$ |
397 |
|
$ |
366 |
|
8% |
|
$ |
331 |
|
20% |
Net Income
Before Tax |
$ |
100 |
|
$ |
82 |
|
22% |
|
$ |
76 |
|
32% |
Net Income |
$ |
79 |
|
$ |
65 |
|
22% |
|
$ |
60 |
|
32% |
Environmental Technologies third-quarter sales were $397
million, up 20% year over year, driven by continued adoption of
gasoline particulate filters and strong demand in the heavy-duty
market. Net income was $79 million.
This strong performance is expected to continue in the fourth
quarter, with sales increasing by a low-teen percentage year over
year. For the full year, management now expects Environmental
Technologies sales to grow by a mid-teen percentage, compared with
prior expectations of low-teens percentage growth.
Specialty Materials:
|
Q3 2019 |
|
Q2 2019 |
|
% change |
|
Q3 2018 |
|
% change |
Net Sales |
$ |
463 |
|
$ |
369 |
|
25% |
|
$ |
459 |
|
1% |
Net Income
Before Tax |
$ |
117 |
|
$ |
85 |
|
38% |
|
$ |
147 |
|
(20%) |
Net Income |
$ |
92 |
|
$ |
67 |
|
37% |
|
$ |
116 |
|
(21%) |
Specialty Materials third-quarter sales were $463 million,
repeating the very strong performance delivered a year ago. Net
income was $92 million.
For the fourth-quarter, sales are expected to be consistent year
over year. The company expects full-year sales growth, despite a
maturing smartphone market.
Life Sciences:
|
Q3 2019 |
|
Q2 2019 |
|
% change |
|
Q3 2018 |
|
% change |
Net Sales |
$ |
256 |
|
$ |
260 |
|
(2%) |
|
$ |
231 |
|
11% |
Net Income
Before Tax |
$ |
52 |
|
$ |
51 |
|
2% |
|
$ |
38 |
|
37% |
Net Income |
$ |
41 |
|
$ |
40 |
|
3% |
|
$ |
30 |
|
37% |
Life Sciences sales were $256 million, up 11% year over year.
Net income was $41 million.
Fourth-quarter sales are expected to grow by a mid-single digit
percentage year over year. Corning continues to outpace overall
market growth and expects full-year sales to be up by a mid-single
digit percentage year over year.
Upcoming Investor EventsOn Dec. 12, Corning will attend
the Barclays Global Technology, Media and Telecommunications
Conference in San Francisco. And Jan. 8, Corning will attend the
Citi 2020 Global Technology Media and
Telecommunications West Conference.
Third-Quarter Conference Call InformationThe company will
host a third-quarter conference call on Tuesday, Oct. 29, at 8:30
a.m. ET. To participate, please call toll free (800) 230-1093 or
for international access call (612) 332-0107 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 ReleaseNon-GAAP
financial measures are not in accordance with, or an alternative
to, U.S. generally accepted accounting principles (“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 StatementsThe
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 IncorporatedCorning (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
damme@corning.com
Investor Relations Contact: Ann H.S. Nicholson (607)
974-6716 nicholsoas@corning.com
Follow Corning: RSS Feeds | Facebook | Twitter |
YouTube
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