Corning Withdraws Fourth-Quarter and 2009 Guidance
18 Novembre 2008 - 2:30PM
Business Wire
Citing declining LCD glass demand, James B. Flaws, Corning
Incorporated�s vice chairman and chief financial officer, will
announce today that the company has withdrawn its previously
disclosed financial guidance for the fourth quarter and 2009.
Speaking at the UBS Technology Conference in New York this morning,
Flaws will say, �Panel makers, particularly those in Taiwan, have
continued to reduce the utilization of their factories heading into
the second half of this quarter in response to weakened retail
demand for LCD televisions and desktop monitors. Demand in our
wholly owned display glass business has dropped more precipitously
than we expected just a few weeks ago. We are also seeing
additional, but less severe, reductions in demand at Samsung
Corning Precision Glass Co. Ltd., our equity company in Korea.�
Flaws will say, �We now expect our fourth-quarter sales to be below
our guidance range of $1.1 billion to $1.2 billion, and earnings
per share to be at the low end or below our guidance range of $0.20
to $0.28*. The retail environment and the LCD supply chain are both
extremely uncertain. As a result, since the display business is a
significant contributor to our overall results, we are unable to
offer revised guidance for the fourth quarter or for 2009 at this
time.� He will add that the company will make further LCD glass
manufacturing capacity reductions in the fourth quarter, with a
resulting impact on gross margins in the Display Technologies
segment and the company overall. He will note that Corning will
have restructuring charges in both the fourth quarter of this year
and in the first half of 2009 as the company adjusts its capacity
and fixed cost structure to reflect the lower demand. Corning plans
to update investors on the business environment on December 10 at
the Barclay�s Technology Conference in San Francisco. As previously
announced, the global economic difficulties have been impacting all
of Corning�s businesses and the company is initiating actions to
reduce capital spending, scale back some manufacturing operations,
curb the rate of growth in research, development and engineering
expenses, and reduce overhead to manage costs. *This is a non-GAAP
financial measure. The reconciliation between GAAP and non-GAAP
measures is provided in the table following this news release, as
well as on the company�s investor relations website. �The latest
economic news indicates that we may be facing a prolonged global
recession. However, we believe that Corning�s strong financial
position will allow us to endure an extended downturn in the
economy. We have $3.2 billion in cash and short-term investments
and $1.5 billion of debt, only $250 million of which is due in the
next four years. �We continue to believe that the long-term
fundamentals remain strong in each of the primary markets where we
compete: LCD glass, automotive and diesel emission substrates and
filters, and telecommunications. We should be well positioned when
the economy begins to turn around,� Flaws will conclude. Corning�s
presentation to investors at the UBS Global Technology and Services
Conference will be available beginning at 8:45 a.m. ET via webcast
by accessing the investor events calendar on Corning�s Web site at
www.corning.com/investor_relations. 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 net income and
EPS measures exclude restructuring, impairment and other charges
and adjustments to prior estimates for such charges. Additionally,
the company�s non-GAAP measures exclude adjustments to asbestos
settlement reserves, gains and losses arising from debt
retirements, charges or credits arising from adjustments to the
valuation allowance against deferred tax assets, equity method
charges resulting from impairments of equity method investments or
restructuring, impairment or other charges taken by equity method
companies and gains from discontinued operations. The company
believes presenting non-GAAP net income and EPS measures is helpful
to analyze financial performance without the impact of unusual
items that may obscure trends in the company�s underlying
performance. These non-GAAP measures are reconciled on the
company�s Web site at www.corning.com/investor_relations and
accompany this news release. About Corning Incorporated Corning
Incorporated (www.corning.com) is the world leader in specialty
glass and ceramics. Drawing on more than 150 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.
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
the�financial 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 fluctuations�and�changes in the
mix of sales between premium and non-premium products; new plant
start-up�or restructuring�costs; possible disruption in commercial
activities due to terrorist activity, armed conflict, political
instability 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; stock price fluctuations; and adverse
litigation or regulatory developments.�These and other�risk factors
are�detailed�in 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. CORNING
INCORPORATED AND SUBSIDIARY COMPANIES RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE Three Months Ended
December 31, 2008 (Unaudited; amounts in millions, except per share
amounts) Corning�s earnings per share (EPS) excluding special items
for the fourth quarter of 2008 is a non-GAAP financial measure
within the meaning of Regulation G of the Securities and Exchange
Commission. Non-GAAP financial measures are not in accordance with,
or an alternative to, generally accepted accounting principles
(GAAP). The company believes presenting non-GAAP EPS is helpful to
analyze financial performance without the impact of unusual items
that may obscure trends in the company�s underlying performance. A
detailed reconciliation is provided below outlining the differences
between this non-GAAP measure and the directly related GAAP
measure. � � Range � Guidance: EPS excluding special items � $ 0.20
� � � $ 0.28 � Special items (a) � � � � � � � � � Earnings per
share This schedule will be updated as additional announcements
occur. (a) From time to time, Corning may record special items
which could result in a gain or loss during the quarter. Please
note that the company may pursue other financing, restructuring and
divestiture activities at any time in the future, and that the
potential impact of these events is not included within Corning's
fourth quarter 2008 guidance. This schedule contains forward
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward looking statements are
based on current expectations and involve certain risks and
uncertainties. Actual results may differ from those projected in
the forward looking statements. Additional information concerning
factors that could cause actual results to materially differ from
those in the forward looking statements is contained in the
Securities and Exchange Commission filings of this Company.
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