Corning Incorporated: Corning Announces Preliminary Third-Quarter Financial
Core earnings per share improve; LCD glass price declines remain moderate
CORNING, N.Y., October 22, 2013- Corning Incorporated (NYSE: GLW) today
announced preliminary third-quarter 2013 results. Corning is providing this
preview to facilitate communications with investors regarding its announcement
today that it has entered into a series of agreements with Samsung Display
Co., Ltd., which is intended to broaden product and technology collaborations.
Please see "Corning and Samsung Strengthen Strategic Collaborations" for
Performance highlights of the third quarter of 2013 include:
*Core earnings per share of $0.33*, an 18% increase over the third quarter
of 2012 of $0.28*. GAAP earnings per share of $0.28, compared with $0.36 a
*Core sales of $2.1 billion*, an increase of 10% over the same period of
2012 of $1.9 billion*. Net sales (GAAP) for the third quarter of 2013 and
2012 were $2.1 billion and 2.0 billion, respectively.
*In the Display Technologies segment, third-quarter LCD glass sequential
price declines remained moderate, as expected. LCD glass volume was up
slightly sequentially, driven by higher-than-expected demand in the wholly
*Sales in all other segments were in line with expectations.
*Core gross margin was 44%*, up nearly two percentage points year over year
and up slightly sequentially.
Remarking on the third quarter, Wendell P. Weeks, chairman, chief executive
officer, and president, said, "In a strong third quarter, Corning achieved its
fourth consecutive quarter of year-over-year core EPS growth by improving core
profitability in our non-display businesses and by tightly controlling
operational expenses. Additionally, we are pleased with another quarter of
moderate LCD glass price declines. We have made significant progress on our
strategy to return to earnings growth."
The company expects fourth-quarter results to be lower sequentially, mainly
driven by normal seasonality in its Telecommunications, Life Sciences, and
Environmental Technologies segments. Adding to the seasonality impact is a
significant year-over-year decrease in fiber sales in North America and China,
and slower-than-expected construction of the National Broadband Network (NBN)
in Australia. In Display Technologies, the company expects moderate sequential
price declines and sequential volumes to be down slightly for its LCD glass.
Corning will discuss third-quarter results and fourth-quarter outlook in more
detail during its previously scheduled earnings call at 8:30 a.m. ET on
Wednesday, Oct. 30, 2013.
*These 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 investor relations website. Core performance metrics
(non-GAAP) are adjusted to exclude the impact of changes in Japanese yen to
U.S. dollar exchange rate and other yen transactions, equity earnings from the
polysilicon business of Dow Corning Corporation, as well as other special
items. See "Use of Non-GAAP Financial Measures" in our Form 8-K filed on
October 22, 2013, for details on Core Performance measures.
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 measuresassists in analyzing financial
performance without the impact ofitems that may obscure trends in the
company's underlying performance. Detailed reconciliations outlining the
differences between these non-GAAP measures and the most directly comparable
GAAP measure can be found on the company's website by going to
www.corning.com/investor_relations and clicking Financial Reports on the
left.These reconciliations also accompany this news release.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" (within the meaning
of the Private Securities Litigation Reform Act of 1995), which are based on
current expectations and assumptions about Corning's financial results and
business operations, that involve substantial risks and uncertainties that
could cause actual results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions;conditions in thefinancial and credit markets;currency
fluctuations;tax rates; product demand and industry capacity; competition;
reliance on a concentrated customer base; manufacturing efficiencies; cost
reductions; availability of critical components and materials; new product
commercialization; pricing fluctuationsandchanges in the mix of sales
between premium and non-premium products;new plant start-upor
restructuringcosts; possible disruption in commercial activities due to
terrorist activity, armed conflict, political or financial instability,
natural disasters, adverse weather conditions, or major health concerns;
adequacy of insurance; equity company activities; acquisition and divestiture
activities; the level of excess or obsolete inventory; the rate of technology
change; the ability to enforce patents; product and components performance
issues; retention of key personnel; stock price fluctuations; and adverse
litigation or regulatory developments.These and otherrisk factors
aredetailedin Corning's filings with the Securities and Exchange
Commission.Forward-looking statements speak only as of the day that they are
made, and Corning undertakes no obligation to update them in light of new
information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass
and ceramics. Drawing on more than 160 years of materials science and process
engineering knowledge, Corning creates and makes keystone components that
enable high-technology systems for consumer electronics, mobile emissions
control, telecommunications and life sciences. Our products include glass
substrates for LCD televisions, computer monitors and laptops; ceramic
substrates and filters for mobile emission control systems; optical fiber,
cable, hardware & equipment for telecommunications networks; optical
biosensors for drug discovery; and other advanced optics and specialty glass
solutions for a number of industries including semiconductor, aerospace,
defense, astronomy, and metrology.
Media Relations Contact:
Daniel F. Collins
Investor Relations Contact:
Ann H. S. Nicholson
Q3 2013 PR Financials
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Corning Incorporated via Thomson Reuters ONE
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