Corning Incorporated (NYSE: GLW) today announced third-quarter 2022
results and provided its outlook for fourth-quarter 2022.
“In the third quarter, our core sales were up slightly year over
year, reaching $3.7 billion, with core EPS of $0.51 – all while
display panel maker utilization reached its lowest level since
2008; smartphone, tablet, and notebook retail unit sales declined
significantly; and automotive production remained constrained. We
offset the effects of these factors by delivering 16%
year-over-year growth in Optical Communications and by capturing
ongoing demand in the solar market that contributed to 33%
year-over-year growth in Hemlock and Emerging Growth Businesses,”
said Wendell P. Weeks, chairman and chief executive officer.
“While three of our key demand drivers are down, our cohesive
and focused portfolio is providing strategic resilience in the
current environment. We remain well positioned to deliver
profitable multiyear growth. We’ll continue to execute with
discipline, invest where we see strength, and pace to demand,”
Weeks continued.
Financial Highlights:
- GAAP sales were $3.5 billion. Core sales were $3.7 billion, up
slightly from a strong third-quarter 2021.
- Optical Communications, Environmental Technologies, Life
Sciences, and Hemlock and Emerging Growth Businesses delivered
year-over-year growth; sales in Specialty Materials increased
sequentially and declined year over year.
- Display Technologies’ sales declined 22% sequentially and 28%
year over year, as volume declined in line with the market; glass
price was consistent sequentially.
- GAAP EPS was $0.24; core EPS was $0.51.
- The primary difference between GAAP and core EPS was from
non-cash charges associated with capacity optimization and
non-cash, mark-to-market adjustments associated with the company’s
currency-hedging contracts.
- Core gross margin and core operating margin of 36.1% and 16.9%,
respectively, were impacted by low volume in Display
Technologies.
- Free cash flow was $255 million for the quarter and $866
million for the first nine months of 2022, keeping the company on
pace for another year of healthy cash generation.
- For the fourth quarter, Corning expects $3.45 billion to $3.65
billion in core sales with core EPS of $0.41 to $0.47.
“As we told investors in early September, panel makers reduced
their production levels below our already low expectations. Our
lower glass volume resulted in a 28% year-over-year decline in
Display Technologies’ sales and caused a drag on the company’s
overall profitability. Our participation in important secular
trends and general outperformance across our markets helped offset
this impact,” said Ed Schlesinger, executive vice president and
chief financial officer.
“Looking ahead to the fourth quarter, we expect $3.45 billion to
$3.65 billion in core sales with core EPS of $0.41 to $0.47.
Although we believe that panel maker utilization reached the bottom
in September, we would like to see more evidence before we guide a
significant recovery in glass demand. When glass demand does
increase, we expect our volume to return and company profitability
to improve. We also expect Optical Communications’ sales to be down
sequentially due to customer project timing. We expect to continue
outperforming our markets and will maintain strong financial
stewardship,” Schlesinger continued.
Strategy in ActionCorning 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. To do so,
Corning takes a long-view approach, investing in a set of vital
capabilities that are becoming 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:
- Investing in Optical
Communications to meet committed
customer demand and address surging industry growth.
AT&T CEO John Stankey and U.S. Secretary of Commerce Gina M.
Raimondo – whose leadership helped pass infrastructure legislation
dedicated to the idea of “Internet for All” – joined Corning to
announce a new optical cable manufacturing facility in Arizona.
Corning also opened a new optical fiber manufacturing plant in
Poland. Additionally, CNBC featured Corning’s North Carolina fiber
and cable factories, highlighting how fiber optic technology is key
to the future of connectivity.
- Strengthening the
United States’ leadership position in the semiconductor
industry by supporting state initiatives. Sen. Charles
Schumer and New York Gov. Kathy Hochul joined Corning to announce a
government-backed expansion of its Advanced Optics facility in
Fairport, which makes equipment and systems vital to semiconductor
manufacturing. In Michigan, government funding is expected to allow
Hemlock Semiconductor to modernize and expand operations to meet
the increasing global demand for hyperpure polysilicon in the
semiconductor industry and address growing solar demand.
- Driving more content into the mobile devices that
people are buying. Industry-leading
customers further adopted premium and new-to-the-world cover
materials, such as Corning® Gorilla® Glass Victus® and Ceramic
Shield, for major product launches.
- Continuing to help the
global health care
industry address current and future public health
challenges. Corning was awarded nearly $104 million in additional
funding from the U.S. federal government to support the company’s
planned capacity expansion for advanced, high-quality
pharmaceutical glass tubing and vials, which will strengthen the
domestic pharmaceutical supply chain.
- Supporting every phase of broadband
deployment through additions to Corning’s Evolv™
connectivity portfolio. These innovations help operators streamline
permitting, accelerate field installation, and optimize network
testing.
- Deepening Corning’s role in the global automotive
ecosystem by advancing the trend toward connectivity,
which enhances the interaction among the car, the driver, and the
outside world. During the quarter, CarUX, a leading car display
company owned by Innolux, announced its use of Corning® ColdForm™
Technology to enable the future of automotive interior
displays.
- Continuing its dedication to all its
stakeholders by receiving a 100% score on the
Disability Equality Index® and being named a 2022 Best Place to
Work for Disability Inclusion. Corning also announced a three-year
corporate partnership with Disability:IN focused on further
integrating disability inclusion best practices into employee
recruiting.
Third-Quarter 2022
Results and Comparisons (In millions,
except per-share amounts)
|
|
Q3 2022 |
|
Q2 2022 |
|
|
% change |
|
Q3 2021 |
|
|
% change |
GAAP Net Sales |
|
$ |
3,488 |
|
$ |
3,615 |
|
|
|
(4%) |
|
$ |
3,615 |
|
|
|
(4%) |
GAAP Net Income (1) |
|
$ |
208 |
|
$ |
563 |
|
|
|
(63%) |
|
$ |
371 |
|
|
|
(44%) |
GAAP EPS |
|
$ |
0.24 |
|
$ |
0.66 |
|
|
|
(64%) |
|
$ |
0.43 |
|
|
|
(44%) |
Core Sales (2) |
|
$ |
3,666 |
|
$ |
3,762 |
|
|
|
(3%) |
|
$ |
3,639 |
|
|
|
1% |
Core Net Income (2) |
|
$ |
438 |
|
$ |
489 |
|
|
|
(10%) |
|
$ |
485 |
|
|
|
(10%) |
Core
EPS (2) |
|
$ |
0.51 |
|
$ |
0.57 |
|
|
|
(11%) |
|
$ |
0.56 |
|
|
|
(9%) |
(1) Represents GAAP net 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.
Optical Communications
|
|
Q3 2022 |
|
Q2 2022 |
|
% change |
|
Q3 2021 |
|
% change |
Net Sales |
|
$ |
1,317 |
|
$ |
1,313 |
|
|
— |
|
$ |
1,131 |
|
|
16% |
Net Income Before Tax |
|
$ |
233 |
|
$ |
233 |
|
|
— |
|
$ |
177 |
|
|
32% |
Net
Income |
|
$ |
183 |
|
$ |
182 |
|
|
1% |
|
$ |
139 |
|
|
32% |
In Optical Communications, sales reached $1.3 billion, growing
16% year over year, driven by 5G, broadband, and the cloud. Net
income was $183 million, up 32% year over year, driven by leverage
from strong incremental volume.
Display Technologies
|
|
Q3 2022 |
|
Q2 2022 |
|
% change |
|
Q3 2021 |
|
% change |
Net Sales |
|
$ |
686 |
|
$ |
878 |
|
|
(22%) |
|
$ |
956 |
|
|
(28%) |
Net Income Before Tax |
|
$ |
169 |
|
$ |
287 |
|
|
(41%) |
|
$ |
311 |
|
|
(46%) |
Net
Income |
|
$ |
134 |
|
$ |
228 |
|
|
(41%) |
|
$ |
247 |
|
|
(46%) |
In Display Technologies, sales were $686 million, down 28% year
over year and 22% sequentially, as volume declined in line with the
market and lower panel maker production. Glass price was consistent
sequentially.
Specialty Materials
|
|
Q3 2022 |
|
|
Q2 2022 |
|
|
% change |
|
|
Q3 2021 |
|
|
% change |
Net Sales |
|
$ |
519 |
|
|
$ |
485 |
|
|
|
7% |
|
|
$ |
556 |
|
|
|
(7%) |
Net Income Before Tax |
|
$ |
122 |
|
|
$ |
115 |
|
|
|
6% |
|
|
$ |
135 |
|
|
|
(10%) |
Net
Income |
|
$ |
96 |
|
|
$ |
91 |
|
|
|
5% |
|
|
$ |
107 |
|
|
|
(10%) |
In Specialty Materials, sales were $519 million, up 7%
sequentially, driven by new product launches utilizing Corning’s
premium cover materials and strength in semiconductor products.
Sales were down 7% year over year, driven by continued softening
demand in the smartphone, tablet, and notebook
markets.
Environmental Technologies
|
|
Q3 2022 |
|
|
Q2 2022 |
|
|
% change |
|
Q3 2021 |
|
|
% change |
|
Net Sales |
|
$ |
425 |
|
|
$ |
356 |
|
|
|
19% |
|
$ |
385 |
|
|
|
10% |
|
Net Income Before Tax |
|
$ |
110 |
|
|
$ |
78 |
|
|
|
41% |
|
$ |
76 |
|
|
|
45% |
|
Net
Income |
|
$ |
87 |
|
|
$ |
62 |
|
|
|
40% |
|
$ |
60 |
|
|
|
45% |
|
In Environmental Technologies, sales were $425 million, up 10%
year over year and 19% sequentially. Net income was $87 million, up
45% year over year and 40% sequentially, growing faster than sales,
driven by increased volume and strong operating performance.
Life Sciences
|
|
Q3 2022 |
|
Q2 2022 |
|
% change |
|
Q3 2021 |
|
% change |
Net Sales |
|
$ |
312 |
|
$ |
312 |
|
|
— |
|
$ |
305 |
|
|
2% |
Net Income Before Tax |
|
$ |
54 |
|
$ |
47 |
|
|
15% |
|
$ |
57 |
|
|
(5%) |
Net
Income |
|
$ |
43 |
|
$ |
37 |
|
|
16% |
|
$ |
45 |
|
|
(4%) |
In Life Sciences, sales were $312 million, remaining consistent
sequentially and growing 2% year over year. Net income was $43
million, growing 16% sequentially. Continued lower demand for
COVID-related diagnostic products was offset by growth in
research.
Hemlock and Emerging Growth Businesses
|
|
Q3 2022 |
|
Q2 2022 |
|
|
% change |
|
Q3 2021 |
|
% change |
Net Sales |
|
$ |
407 |
|
$ |
418 |
|
|
|
(3%) |
|
$ |
306 |
|
|
33% |
Net Income Before Tax |
|
$ |
26 |
|
$ |
35 |
|
|
|
(26%) |
|
$ |
(4) |
|
|
* |
Net
Income (Loss) |
|
$ |
18 |
|
$ |
25 |
|
|
|
(28%) |
|
$ |
(5) |
|
|
* |
*Not meaningful
In Hemlock and Emerging Growth Businesses, sales were $407
million, down 3% sequentially and up 33% year over year. Strong
performance was largely driven by continued growth in demand for
semiconductor- and solar-grade polysilicon. Automotive Glass
Solutions and Corning Pharmaceutical Technologies also contributed
to year-over-year growth.
Upcoming Investor EventsOn Nov. 29, Corning
will attend the Credit Suisse 26th Annual Technology Conference. On
Dec. 8, Corning will attend the Barclays Global Technology, Media
and Telecommunications 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.
Third-Quarter Conference Call InformationThe
company will host its third-quarter conference call on Tuesday,
Oct. 25, at 8:30 a.m. EDT. To participate, individuals may
pre-register here prior to the start of the call. Once the required
fields are completed, click “Register.” A telephone number and
personal 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.
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,”
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.
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, actual results could differ
materially. 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 duration and severity of the COVID-19
pandemic, and its impact across our businesses on demand,
personnel, operations, our global supply chains and stock price;
global economic trends, competition and geopolitical risks, or an
escalation of sanctions, tariffs or other trade tensions, and
related impacts on our businesses' global supply chains and
strategies; changes in macroeconomic and market conditions, market
volatility, interest rates, capital markets, the value of
securities and other financial assets, precious metals, oil,
natural gas and other commodities and exchange rates (particularly
between the U.S. dollar and the Japanese yen, new Taiwan dollar,
euro, Chinese yuan and South Korean won), consumer demand, and the
impact of such changes and volatility on our financial position and
businesses; 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; disruption to Corning's, our
suppliers' and manufacturers' supply chain, logistics, equipment,
facilities, IT systems, operations or commercial activities 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; effects of acquisitions, dispositions
and other similar transactions; effect of regulatory and legal
developments; ability to pace capital spending to anticipated
levels of customer demand; our ability to increase margins through
implementation of operational changes, pricing actions and cost
reduction measures without impacting revenues; rate of technology
change; ability to enforce patents and protect intellectual
property and trade secrets; adverse litigation; product and
components performance issues; attraction and 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:Megan Whittemore(202)
661-4171whittemom@corning.com
Investor Relations Contact:Ann H.S. Nicholson
(607) 974-6716 nicholsoas@corning.com
- Corning Reports Third-Quarter Results Highlighted by Optical
Communications and Solar Sales Growth
- Q3 2022 Earnings Release Financials
- Q3 2022 Earnings Infographic
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024