Corning Incorporated (NYSE: GLW) today announced its
fourth-quarter and full-year 2023 results and provided its outlook
for first-quarter 2024.
Wendell P. Weeks, chairman and chief executive officer,
said, “Overall, our results in the quarter – and
throughout 2023 – demonstrate that we continue to make solid
progress advancing our market leadership, strengthening our
profitability, and improving our cash-flow generation even in the
lower-demand environment we’ve experienced.”
Weeks continued, “We are entering 2024 operationally strong, and
we have an opportunity to increase our sales by more than $3
billion in the medium term as our markets normalize. As we capture
that growth, we expect to deliver powerful incremental profit and
cash flow – which is a terrific opportunity for our
shareholders.”
Financial Review
Fourth-Quarter 2023:
- GAAP sales were $3.0 billion, down 6% sequentially. Core sales
were $3.3 billion, down 5% sequentially, in line with
expectations.
- GAAP EPS was $(0.05), and core EPS was $0.39. The difference
between GAAP and core EPS primarily reflected constant currency
adjustments, translated earnings contract gains, and translation
losses on Japanese-yen-denominated debt, as well as restructuring
and asset write-off charges.
- Year over year, GAAP gross margin improved by 350 basis points
and core gross margin improved by 330 basis points while GAAP and
core sales declined 12% and 10%, respectively.
- Cash flow continued to improve: GAAP operating cash flow was
$713 million, and adjusted free cash flow was $487 million.
Full-Year 2023:
- GAAP sales were $12.6 billion, down 11%. Core sales were $13.6
billion, down 8%.
- GAAP EPS was $0.68, and core EPS was $1.70. The difference
between GAAP and core EPS primarily reflected constant currency
adjustments, translated earnings contract gains, and translation
gains on Japanese-yen-denominated debt, as well as restructuring
and asset write-off charges.
- GAAP operating cash flow was $2 billion, and adjusted free cash
flow was $880 million.
First-Quarter 2024 Outlook:
- Management expects first-quarter core sales of approximately
$3.1 billion and core EPS in the range of $0.32 to $0.38 and
anticipates the first quarter to be the low quarter of the
year.
Ed Schlesinger, executive vice president and chief
financial officer, said, “In the fourth quarter, we grew
core gross margin by 330 basis points versus the fourth quarter of
2022, and adjusted free cash flow improved to $487 million. Our
results in the quarter – and throughout 2023 – reflect the benefits
of our actions to increase price, improve our productivity ratios,
and reduce inventory.”
Schlesinger continued, “For the first quarter of 2024, we expect
core sales of approximately $3.1 billion and EPS in the range of
$0.32 to $0.38. We anticipate the first quarter to be the low
quarter of the year and to drive profitable, durable growth over
the long term.”
Strategy in Action Corning strives
to be a catalyst for positive change and to help move the world
forward. The company drives profitable multiyear growth by
inventing, making, and selling life-changing products while
cultivating deep, trust-based relationships with industry leaders,
ultimately incorporating more content into customers’ offerings.
Corning takes the long view, investing in a set of vital
capabilities that are increasingly relevant to profound
transformations that touch many facets of daily life. Today,
Corning’s markets include optical communications, mobile consumer
electronics, display, automotive, solar, semiconductor, and life
sciences.
Recent highlights include:
- Continuing to set the standard for durable,
high-performance smartphone cover materials. Corning
continued its legacy of innovation with its Corning® Gorilla®
Armor, a new cover material featured on Samsung’s Galaxy S24 Ultra.
Gorilla Armor offers an unparalleled combination of durability and
visual clarity, delivering a richer display in sunlight and greater
protection against damage caused by daily wear.
- Advancing optical innovations in broadband, 5G, cloud
computing, and advanced AI. Corning’s Jeffrey Evenson,
executive vice president and chief strategy officer, along with
Aleksandra Boskovic, vice president of technology development,
Optical Communications, shared how Corning’s optical fiber
innovations and unique value proposition position the company to
capitalize on opportunities in telecommunications, cloud computing,
and advanced artificial intelligence. To learn more, see Corning’s
feature in Bloomberg Intelligence’s Tech Disruptors podcast.
- Advancing the driving experience by creating the next
generation of automotive-interior displays. Collaboration
among Corning, display leader Tianma, and automaker GAC
incorporates Corning’s award-winning LivingHinge™ Technology, which
was named a 2024 “Best of Innovation Honoree” by CES® for enabling
the display to dynamically bend. Also at CES, Corning unveiled its
latest cockpit innovation alongside longtime collaborator BOE
Technology Group Co. Ltd. It features a 44.6-inch ultra-large oxide
panel with Corning® ColdForm™ Technology, which touts an
independently verified lower environmental impact of at least
25%.
- Helping automakers turn windows into system-enabling
components. A recent MotorTrend article
featured Corning’s new Fusion5™ Glass,
which delivers windshields with superior durability, better optical
performance, and lighter weight than conventional windshields. The
innovative windshield technology helps enable the sensor systems
needed for Advanced Driver Assistance Systems and higher levels of
autonomy, while providing weight savings needed to extend electric
vehicle range.
- Continuing its dedication to providing an equitable
workplace. For the second year in a row, Corning received
a score of 100 on the Human Rights Campaign Foundation’s Corporate
Equality Index.
Fourth-Quarter and Full-Year 2023 Results and
Comparisons(In millions, except per-share
amounts)
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
GAAP Net Sales |
|
$ |
2,994 |
|
|
$ |
3,173 |
|
|
|
(6 |
%) |
|
$ |
3,406 |
|
|
|
(12 |
%) |
|
$ |
12,588 |
|
|
$ |
14,189 |
|
|
|
(11 |
%) |
GAAP Net (Loss) Income
(1) |
|
$ |
(40 |
) |
|
$ |
164 |
|
|
|
* |
|
|
$ |
(36 |
) |
|
|
11 |
% |
|
$ |
581 |
|
|
$ |
1,316 |
|
|
|
(56 |
%) |
GAAP Diluted EPS |
|
$ |
(0.05 |
) |
|
$ |
0.19 |
|
|
|
* |
|
|
$ |
(0.04 |
) |
|
|
25 |
% |
|
$ |
0.68 |
|
|
$ |
1.54 |
|
|
|
(56 |
%) |
Core Sales (2) |
|
$ |
3,272 |
|
|
$ |
3,459 |
|
|
|
(5 |
%) |
|
$ |
3,633 |
|
|
|
(10 |
%) |
|
$ |
13,580 |
|
|
$ |
14,805 |
|
|
|
(8 |
%) |
Core Net Income (2) |
|
$ |
339 |
|
|
$ |
386 |
|
|
|
(12 |
%) |
|
$ |
402 |
|
|
|
(16 |
%) |
|
$ |
1,463 |
|
|
$ |
1,794 |
|
|
|
(18 |
%) |
Core
EPS (2) |
|
$ |
0.39 |
|
|
$ |
0.45 |
|
|
|
(13 |
%) |
|
$ |
0.47 |
|
|
|
(17 |
%) |
|
$ |
1.70 |
|
|
$ |
2.09 |
|
|
|
(19 |
%) |
(1) Represents GAAP net (loss) income attributable to Corning
Incorporated.(2) 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
Fourth-Quarter and Full-Year 2023 Segment
ResultsThe fourth-quarter and full-year 2023 results
below are prepared on a basis consistent with Corning’s segment
reporting as presented in the company’s consolidated financial
statements.
Optical Communications
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
Net Sales |
|
$ |
903 |
|
|
$ |
918 |
|
|
|
(2 |
%) |
|
$ |
1,195 |
|
|
|
(24 |
%) |
|
$ |
4,012 |
|
|
$ |
5,023 |
|
|
|
(20 |
%) |
Net
Income |
|
$ |
88 |
|
|
$ |
91 |
|
|
|
(3 |
%) |
|
$ |
130 |
|
|
|
(32 |
%) |
|
$ |
478 |
|
|
$ |
661 |
|
|
|
(28 |
%) |
In Optical Communications, fourth-quarter sales were $903
million, down 2% sequentially, primarily reflecting temporarily
lower demand from carrier customers as they continue to draw down
inventory. Fourth-quarter net income was $88 million, down 3%
sequentially, on the lower volume.
Display Technologies
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
Net Sales |
|
$ |
869 |
|
|
$ |
972 |
|
|
|
(11 |
%) |
|
$ |
783 |
|
|
|
11 |
% |
|
$ |
3,532 |
|
|
$ |
3,306 |
|
|
|
7 |
% |
Net
Income |
|
$ |
232 |
|
|
$ |
242 |
|
|
|
(4 |
%) |
|
$ |
171 |
|
|
|
36 |
% |
|
$ |
842 |
|
|
$ |
769 |
|
|
|
9 |
% |
In Display Technologies, fourth-quarter sales were $869 million,
down 11% sequentially, reflecting a sequential volume decline in
line with the market, partially offset by the impact of the
company’s second-half price increases. Fourth-quarter net income
declined 4% sequentially to $232 million. The company successfully
executed a double-digit price increase in the second half of
2023.
Specialty Materials
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
Net Sales |
|
$ |
473 |
|
|
$ |
563 |
|
|
|
(16 |
%) |
|
$ |
505 |
|
|
|
(6 |
%) |
|
$ |
1,865 |
|
|
$ |
2,002 |
|
|
|
(7 |
%) |
Net
Income |
|
$ |
58 |
|
|
$ |
72 |
|
|
|
(19 |
%) |
|
$ |
78 |
|
|
|
(26 |
%) |
|
$ |
202 |
|
|
$ |
340 |
|
|
|
(41 |
%) |
In Specialty Materials, fourth-quarter sales were $473 million,
down 16% sequentially, following strong third-quarter sales of
smartphone cover materials for customer product launches.
Fourth-quarter net income was $58 million, down 19% sequentially,
reflecting lower volume.
Environmental Technologies
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
Net Sales |
|
$ |
429 |
|
|
$ |
449 |
|
|
|
(4 |
%) |
|
$ |
394 |
|
|
|
9 |
% |
|
$ |
1,766 |
|
|
$ |
1,584 |
|
|
|
11 |
% |
Net
Income |
|
$ |
98 |
|
|
$ |
99 |
|
|
|
(1 |
%) |
|
$ |
69 |
|
|
|
42 |
% |
|
$ |
386 |
|
|
$ |
292 |
|
|
|
32 |
% |
In Environmental Technologies, fourth-quarter sales were $429
million, down 4% sequentially, reflecting normal seasonality.
Fourth-quarter net income was $98 million, consistent
sequentially.
Life Sciences
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
Net Sales |
|
$ |
242 |
|
|
$ |
230 |
|
|
|
5 |
% |
|
$ |
294 |
|
|
|
(18 |
%) |
|
$ |
959 |
|
|
$ |
1,228 |
|
|
|
(22 |
%) |
Net
Income |
|
$ |
17 |
|
|
$ |
13 |
|
|
|
31 |
% |
|
$ |
31 |
|
|
|
(45 |
%) |
|
$ |
50 |
|
|
$ |
153 |
|
|
|
(67 |
%) |
In Life Sciences, fourth-quarter sales were $242 million, up 5%
sequentially, as customers in North America and Europe are
completing their inventory draw downs. Fourth-quarter net income
was $17 million, up 31% sequentially, driven by higher volume and
productivity improvements.
Hemlock and Emerging Growth Businesses
|
|
Q4 2023 |
|
|
Q3 2023 |
|
|
% change |
|
|
Q4 2022 |
|
|
% change |
|
|
Full-year 2023 |
|
|
Full-year 2022 |
|
|
% change |
|
Net Sales |
|
$ |
356 |
|
|
$ |
327 |
|
|
|
9 |
% |
|
$ |
462 |
|
|
|
(23 |
%) |
|
$ |
1,446 |
|
|
$ |
1,662 |
|
|
|
(13 |
%) |
Net
(Loss) Income |
|
$ |
(19 |
) |
|
$ |
(8 |
) |
|
|
138 |
% |
|
$ |
4 |
|
|
|
* |
|
|
$ |
15 |
|
|
$ |
39 |
|
|
|
(62 |
%) |
* Not Meaningful
In Hemlock and Emerging Growth Businesses, fourth-quarter sales
were $356 million, up 9% sequentially, primarily reflecting higher
semiconductor polysilicon volume.
Upcoming Investor EventsOn March 1, Corning
will attend the Susquehanna Financial Group, LLLP 13th Annual
Technology Conference. On March 5, Corning will attend the Morgan
Stanley Technology, Media & Telecom Conference. Corning will
also host management visits to investor offices in select cities.
Visit the company’s Investor Relations website for up-to-date
conference information.
Fourth-Quarter Conference Call InformationThe
company will host its fourth-quarter conference call on Tuesday,
Jan. 30, at 8:30 a.m. EST. To participate, individuals may
preregister here prior to the start of the call. Once the required
fields are completed, click “Register.” A telephone number and PIN
will be auto generated and will pop up on screen. Participants will
have the choice to “Dial In” or have the system “Call Me.” A
confirmation email will also be sent with specific dial-in
information. To listen to a live audio webcast of the call, go to
the company’s Investor Relations events page and follow the
instructions.
Presentation of Information in this News
ReleaseThis news release includes non-GAAP financial
measures. 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.
With respect to the outlook for future periods, it is not
possible to provide reconciliations for these non-GAAP measures
because management does not forecast the movement of foreign
currencies against the U.S. dollar, or other items that do not
reflect ongoing operations, nor does it forecast items that have
not yet occurred or are out of management’s control. As a result,
management is unable to provide outlook information on a GAAP
basis.
Caution Concerning Forward-Looking
StatementsThe statements contained in this release and
related comments by management that are not historical facts or
information and contain words such as “will,” “believe,”
“anticipate,” “expect,” “intend,” “plan,” “seek,” “see,”
“would,” “target,” “estimate,” “forecast” or 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 forward-looking statements relate to,
among other things, the company’s future operating
performance, the company’s share of new and existing markets, the
company’s revenue and earnings growth rates, the company’s ability
to innovate and commercialize new products, the company’s
expected capital expenditure and the company’s implementation of
cost-reduction initiatives and measures to improve pricing,
including the optimization of the company’s manufacturing
capacity.
Although the company believes that these forward-looking
statements are based upon reasonable assumptions regarding, among
other things, current estimates and forecasts,
general economic conditions, its knowledge of its business and
key performance indicators that impact the company, there can be no
assurance that these forward-looking statements will prove
to be accurate, as actual results and future events could
differ materially from those anticipated in such
statements. The company undertakes no obligation to update
forward-looking statements if circumstances or management’s
estimates or opinions should change except as required by
applicable securities laws.
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: global economic trends, competition and
geopolitical risks, or an escalation of sanctions, tariffs or other
trade tensions between the U.S. and China or other countries,
and related impacts on our businesses’ global supply
chains and strategies; changes in macroeconomic and market
conditions and market volatility, including developments and
volatility arising from health crisis events,
inflation, interest rates, the value of securities and other
financial assets, precious metals, oil, natural gas, raw
materials and other commodity prices and exchange rates
(particularly between the U.S. dollar and the Japanese
yen, New Taiwan dollar, euro, Chinese yuan and South Korean
won), the availability of government incentives, decreases or
sudden increases of consumer demand, and the impact of such changes
and volatility on our financial position and businesses; the
duration and severity of health crisis events, such as an
epidemic or pandemic, and its impact across our businesses on
demand, personnel, operations, our global supply chains and
stock price; possible disruption in commercial activities or our
supply chain due to terrorist activity, cyber-attack, armed
conflict, political or financial instability, natural
disasters, international trade disputes or major health
concerns; loss of intellectual property due to theft, cyber-attack,
or disruption to our information technology infrastructure; ability
to enforce patents and protect intellectual property and trade
secrets; disruption to Corning’s, our suppliers’ and
manufacturers’ supply chain, equipment, facilities, IT systems
or operations; product demand and industry capacity;
competitive products and pricing; availability and costs of
critical components, materials, equipment, natural resources and
utilities; 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; the amount
and timing of any future dividends; the effects of
acquisitions, dispositions and other similar transactions; the
effect of regulatory and legal developments; ability to pace
capital spending to anticipated levels of customer demand; our
ability to increase revenues and margins through optimization of
our manufacturing capacity and implementation of operational
changes, pricing actions and cost reduction measures; rate of
technology change; adverse litigation; product and component
performance issues; retention of key personnel; customer
ability to maintain profitable operations and obtain financing to
fund ongoing operations and manufacturing expansions and pay
receivables when due; loss of significant customers; changes
in tax laws, regulations and international tax standards; the
impacts of audits by taxing authorities; the potential impact of
legislation, government regulations, and other government
action and investigations; and other risks detailed in Corning’s
SEC filings.
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 DisclosureIn 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
(https://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 170-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 its customers capture new
opportunities in dynamic industries. Today, Corning’s markets
include optical communications, mobile consumer electronics,
display, automotive, solar, semiconductors, and life sciences.
Media Relations Contact:Michael A. West Jr.
(607) 684-1167westm4@corning.com
Investor Relations Contact:Ann H.S. Nicholson
(607) 974-6716 nicholsoas@corning.com
- Corning Q4 and FY 2023 Earnings Release Financials
- Corning Q4 and FY 2023 Earnings Infographic
- Corning Reports Fourth-Quarter and Full-Year 2023 Financial
Results
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