Corning Incorporated (NYSE: GLW) today announced its fourth-quarter
and full-year 2022 results and provided its outlook for
first-quarter 2023.
Financial Performance
Fourth-Quarter 2022:
- Fourth-quarter GAAP sales were $3.4 billion, and core sales
were $3.6 billion.
- Fourth-quarter GAAP EPS was $(0.04), and core EPS was $0.47.
The primary differences between GAAP and core EPS stemmed from
restructuring charges taken in the fourth quarter and from
non-cash, mark-to-market adjustments associated with the company’s
currency-hedging contracts and Japanese-yen-denominated debt.
- Free cash flow for the quarter was $377 million.
Full-Year 2022:
- For the full year, GAAP sales were $14.2 billion, up 1% year
over year, and core sales were $14.8 billion, up 5%, versus a
strong 2021.
- Optical Communications’ annual sales surpassed $5 billion,
reaching an all-time high.
- Display Technologies maintained stable pricing year over year
despite a sharp drop in panel maker utilization in the second
half.
- Specialty Materials and Environmental Technologies delivered
consistent sales year over year, outperforming depressed end
markets.
- Hemlock and Emerging Growth Businesses generated 34%
year-over-year growth, driven primarily by solar sales, as well as
strong year-over-year growth in Pharmaceutical Technologies and
Automotive Glass Solutions.
- Full-year GAAP EPS was $1.54, and core EPS was $2.09. The
primary differences between GAAP and core EPS stemmed from
restructuring charges.
- Full-year free cash flow was $1.24 billion.
First-Quarter 2023
Outlook:
- For the first quarter, management expects core sales in the
range of $3.2 billion to $3.4 billion and core EPS in the range of
$0.35 to $0.42. Management expects sales to decline more than
seasonally due to pandemic-related disruptions in China. Management
took actions to increase price and improve productivity in the
fourth quarter of 2022. The company expects the benefits of these
actions to begin in the first quarter of 2023 and, as a result,
profitability to improve despite an anticipated sequential sales
decline.
Wendell P. Weeks, chairman and chief executive officer,
said: “In 2022, Corning grew core sales to $14.8 billion
as we built on our strong positions in optical communications and
solar – and our businesses continued outperforming their end
markets. I’m pleased with the sales growth we continue to deliver
despite recession-level demand in markets constituting about half
of our sales. However, our profitability and cash flow have lagged
sales growth as a number of pandemic-driven effects continue to
ripple across the global economy. In response, we took significant
additional price and productivity improvement actions in the fourth
quarter that will improve margins and cash generation starting this
year.”
Weeks continued, “We will continue to focus on operating each of
our businesses well in 2023, including adapting to global and
market dynamics, while simultaneously advancing long-term growth
initiatives and capabilities that will drive our success as the
global economy stabilizes. Even though the pandemic-related
disruptions in China are currently impacting the television,
automotive, smartphone, and IT markets, we’ll be ready to capture
growth when consumer demand returns. We remain confident in our
ability to deliver durable multiyear growth.”
Ed Schlesinger, executive vice president and chief
financial officer, said: “In 2022, we grew full-year sales
and EPS. In the fourth quarter, we took actions to further improve
our profitability and cash flow. These actions included raising
prices again in Optical Communications and Life Sciences, improving
our productivity metrics, and reducing our inventory.”
Schlesinger continued, “Looking ahead, we’re well positioned to
capture growth as our end markets recover. For the first quarter,
we anticipate core sales in the range of $3.2 billion to $3.4
billion, and we expect sales to improve from these levels in the
second quarter. The benefits of our recent actions will improve
profitability despite lower sales, and we expect first-quarter core
EPS in the range of $0.35 to $0.42.”
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.
2022
highlights include:
- Delivering innovations that
offer unprecedented performance to meet the rigorous
demands put on smartphone cover materials
and allow people to do
more right from their mobile
devices by developing a new glass composition, Corning®
Gorilla® Glass Victus® 2, that delivers improved drop performance
on rough surfaces like concrete. Samsung Electronics Co., Ltd. will
use the new composition as part of its next generation of
Galaxy flagship smartphones. Additionally, Corning’s premium cover
materials are also on the front and back of the Samsung Galaxy S22
devices, and Corning’s DX products are featured on all five rear
cameras of the Samsung Galaxy S22 Ultra.
- Enabling enhanced experiences for drivers and making
vehicles greener by providing sustainable glass solutions
for innovative curved interior displays. Corning collaborated with
LG Electronics, a global technology and vehicle component solutions
innovator, to advance in-car connectivity, and with CarUX, a
leading car display company owned by Innolux, to enable the future
of automotive displays. Corning also continued expanding its
gasoline particulate filter business into new markets as India
advanced GPF implementation.
- Helping build a more connected world. Corning
teamed up with Nokia and Wesco to address operators’ labor and
supply challenges with products that accelerate and simplify rural
broadband deployment. To meet demand in Europe, Corning opened a
new optical fiber manufacturing plant in Poland. Additionally, the
company was joined by AT&T CEO John Stankey and U.S. Secretary
of Commerce Gina Raimondo, whose leadership helped pass
infrastructure legislation dedicated to connecting the unconnected,
to announce a new optical cable manufacturing facility in Arizona
to meet committed customer demand and address industry growth.
- Advancing the semiconductors that are fundamental to
all of today’s technology by
strengthening the United States’ leadership position in the growing
industry. Sen. Charles Schumer and New York Gov. Kathy
Hochul joined Corning to announce a government-backed expansion of
its Advanced Optics facility in Fairport, New York, to bolster the
supply chain. In Michigan, government funding is expected to allow
the expansion of operations to meet the increasing global
demand for hyperpure polysilicon in the semiconductor industry and
address growing solar demand.
- Developing sustainable practices across its
industries. Corning expanded its supply
of critical materials to the solar industry, submitted carbon
reduction goals to the Science Based Targets initiative, and
extended its leadership in renewable energy use. Corning also
pioneered chemical recycling methods with the potential to
drastically reduce single-use plastic consumption and waste in the
Life Sciences industry.
- Driving life-changing discovery – from
clean energy to space exploration. Corning’s advanced
optics technologies played a vital role in the first successful
fusion-ignition experiment in history. The company also applied its
industry-leading solutions to enable the world’s deepest look into
the universe by engineering and manufacturing key optical
instruments for NASA’s James Webb Space Telescope.
- Building a more
diverse, equitable, and inclusive work environment.
Corning became a VETS Indexes Recognized Employer in recognition of
the company’s many employees who are veterans as well as
its work to hire, retain, promote, and support veterans, and
the National Business Inclusion Consortium named Corning among its
Best-of-the-Best Corporations for Inclusion.
Fourth-Quarter and Full-Year 2022 Results and
Comparisons(In millions, except per-share
amounts)
|
|
Q4 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
% change |
GAAP Net Sales |
|
$ |
3,406 |
|
$ |
3,488 |
|
|
(2%) |
|
$ |
3,676 |
|
|
(7%) |
|
$ |
14,189 |
|
$ |
14,082 |
|
1% |
GAAP Net (Loss) Income
(1) |
|
$ |
(36) |
|
$ |
208 |
|
|
* |
|
$ |
487 |
|
|
* |
|
$ |
1,316 |
|
$ |
1,906 |
|
(31%) |
GAAP Diluted EPS |
|
$ |
(0.04) |
|
$ |
0.24 |
|
|
* |
|
$ |
0.56 |
|
|
* |
|
$ |
1.54 |
|
$ |
1.28 |
|
20% |
Core Sales (2) |
|
$ |
3,633 |
|
$ |
3,666 |
|
|
(1%) |
|
$ |
3,714 |
|
|
(2%) |
|
$ |
14,805 |
|
$ |
14,120 |
|
5% |
Core Net Income (2) |
|
$ |
402 |
|
$ |
438 |
|
|
(8%) |
|
$ |
465 |
|
|
(14%) |
|
$ |
1,794 |
|
$ |
1,811 |
|
(1%) |
Core
EPS (2) |
|
$ |
0.47 |
|
$ |
0.51 |
|
|
(8%) |
|
$ |
0.54 |
|
|
(13%) |
|
$ |
2.09 |
|
$ |
2.07 |
|
1% |
(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
2022 Segment ResultsThe fourth-quarter
and full-year 2022 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 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
|
% change |
Net Sales |
|
$ |
1,195 |
|
$ |
1,317 |
|
|
(9%) |
|
$ |
1,206 |
|
|
(1%) |
|
$ |
5,023 |
|
$ |
4,349 |
|
|
15% |
Net Income Before Tax |
|
$ |
164 |
|
$ |
233 |
|
|
(30%) |
|
$ |
198 |
|
|
(17%) |
|
$ |
841 |
|
$ |
705 |
|
|
19% |
Net
Income |
|
$ |
130 |
|
$ |
183 |
|
|
(29%) |
|
$ |
155 |
|
|
(16%) |
|
$ |
661 |
|
$ |
553 |
|
|
20% |
In Optical Communications, fourth-quarter sales were $1.2
billion, down 9% sequentially, driven by the pacing of customer
projects. For the full year, sales surpassed $5 billion, an
increase of 15%, driven by 5G, broadband, and cloud computing.
Display Technologies
|
|
Q4 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
|
% change |
Net Sales |
|
$ |
783 |
|
$ |
686 |
|
|
14% |
|
$ |
942 |
|
|
(17%) |
|
$ |
3,306 |
|
$ |
3,700 |
|
|
(11%) |
Net Income Before Tax |
|
$ |
217 |
|
$ |
169 |
|
|
28% |
|
$ |
317 |
|
|
(32%) |
|
$ |
972 |
|
$ |
1,209 |
|
|
(20%) |
Net
Income |
|
$ |
171 |
|
$ |
134 |
|
|
28% |
|
$ |
252 |
|
|
(32%) |
|
$ |
769 |
|
$ |
960 |
|
|
(20%) |
In Display Technologies, fourth-quarter sales were $783 million,
up 14% sequentially, as panel maker utilization increases drove
higher volume, and glass price was consistent with the third
quarter. Net income was $171 million, up 28% sequentially, driven
by strong execution and additional volume. For the full year, sales
were $3.3 billion, down 11% year over year, driven by lower glass
volume as a result of the industry correction in the second half of
2022. Glass price was consistent for the full year, and the company
expects glass price in the first quarter to remain consistent with
the fourth quarter.
Specialty Materials
|
|
Q4 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
|
% change |
Net Sales |
|
$ |
505 |
|
$ |
519 |
|
|
(3%) |
|
$ |
518 |
|
|
(3%) |
|
$ |
2,002 |
|
$ |
2,008 |
|
|
— |
Net Income Before Tax |
|
$ |
98 |
|
$ |
122 |
|
|
(20%) |
|
$ |
117 |
|
|
(16%) |
|
$ |
430 |
|
$ |
470 |
|
|
(9%) |
Net
Income |
|
$ |
78 |
|
$ |
96 |
|
|
(19%) |
|
$ |
92 |
|
|
(15%) |
|
$ |
340 |
|
$ |
371 |
|
|
(8%) |
In Specialty Materials, fourth-quarter sales were $505 million,
down 3% sequentially and year over year, but outperformed the
smartphone and IT markets driven by customer product launches and
continued strong demand for premium glasses and advanced optics
products. Full-year sales were consistent as the segment
outperformed the smartphone and IT markets, which were down by 11%
and 15%, respectively. Full-year net income was $340 million, down
8% year over year, due to continued investment in next-generation
materials for consumer electronics and semiconductor equipment, as
well as new markets, such as bendable devices and augmented
reality.
Environmental Technologies
|
|
Q4 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
|
% change |
Net Sales |
|
$ |
394 |
|
$ |
425 |
|
|
(7%) |
|
$ |
353 |
|
|
12% |
|
$ |
1,584 |
|
$ |
1,586 |
|
|
— |
Net Income Before Tax |
|
$ |
88 |
|
$ |
110 |
|
|
(20%) |
|
$ |
69 |
|
|
28% |
|
$ |
370 |
|
$ |
341 |
|
|
9% |
Net
Income |
|
$ |
69 |
|
$ |
87 |
|
|
(21%) |
|
$ |
54 |
|
|
28% |
|
$ |
292 |
|
$ |
269 |
|
|
9% |
In Environmental Technologies, fourth-quarter sales were $394
million, down 7% sequentially, as OEMs in China reduced production
in December. Full-year sales remained consistent as light- and
heavy-duty markets in China remained weak and global
automotive-market growth was restricted.
Life Sciences
|
|
Q4 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
|
% change |
Net Sales |
|
$ |
294 |
|
$ |
312 |
|
|
(6%) |
|
$ |
317 |
|
|
(7%) |
|
$ |
1,228 |
|
$ |
1,234 |
|
|
— |
Net Income Before Tax |
|
$ |
39 |
|
$ |
54 |
|
|
(28%) |
|
$ |
61 |
|
|
(36%) |
|
$ |
193 |
|
$ |
245 |
|
|
(21%) |
Net
Income |
|
$ |
31 |
|
$ |
43 |
|
|
(28%) |
|
$ |
49 |
|
|
(37%) |
|
$ |
153 |
|
$ |
194 |
|
|
(21%) |
In Life Sciences, fourth-quarter sales were $294 million, down
sequentially and year over year, reflecting lower demand for
COVID-related products. Fourth-quarter net income was down, driven
by lower sales and the impact of reducing inventory. Full-year
sales of $1.2 billion were consistent with a strong 2021, while net
income was $153 million, down 21%, as the unexpected shift in
demand away from COVID-related products led to significantly lower
productivity in the company’s manufacturing operations.
Hemlock and Emerging Growth
Businesses
|
|
Q4 2022 |
|
Q3 2022 |
|
% change |
|
Q4 2021 |
|
% change |
|
Full-year 2022 |
|
Full-year 2021 |
|
% change |
Net Sales |
|
$ |
462 |
|
$ |
407 |
|
|
14% |
|
$ |
378 |
|
|
22% |
|
$ |
1,662 |
|
$ |
1,243 |
|
|
34% |
Net Income (Loss) Before
Tax |
|
$ |
9 |
|
$ |
26 |
|
|
(65%) |
|
$ |
(8) |
|
|
* |
|
$ |
63 |
|
$ |
(62) |
|
|
* |
Net
Income (Loss) |
|
$ |
4 |
|
$ |
18 |
|
|
(78%) |
|
$ |
(7) |
|
|
* |
|
$ |
39 |
|
$ |
(51) |
|
|
* |
* Not Meaningful
In Hemlock and Emerging Growth Businesses, fourth-quarter sales
were $462 million, up 14% sequentially. Full-year sales were $1.7
billion, up 34% year over year, driven by continued strong demand
for solar polysilicon, as well as strong year-over-year growth in
Pharmaceutical Technologies and Automotive Glass Solutions.
Upcoming Investor EventsOn March 2, Corning
will attend the Susquehanna Financial Group, LLLP 12th Annual
Technology Conference. On March 7, Corning will attend the Morgan
Stanley Technology, Media and 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. 31, at 8:30 a.m. EST. 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.
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,”
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: 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, market
volatility, including developments and volatility arising from the
COVID-19 pandemic, inflation, interest rates, the value of
securities and other financial assets, precious metals, oil,
natural gas 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 amount and
timing of any future dividends; the duration and severity of the
COVID-19 pandemic and its impact across our businesses on demand,
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; unanticipated 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 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 margins through 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:Megan Whittemore(202)
661-4171whittemom@corning.com
Investor Relations Contact:Ann H.S. Nicholson
(607) 974-6716 nicholsoas@corning.com
- Corning Reports Fourth-Quarter and Full-Year 2022 Financial
Results
- Q4 2022 Earnings Release Financials
- Q4 2022 Earnings Infographic
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024