Corning Incorporated (NYSE:GLW) today announced its results for
the second quarter of 2009, as well as its expectations for the
third quarter.
Second-Quarter Highlights
- Sales were $1.4 billion, up 41%
sequentially.
- Earnings per share were $0.39.
Excluding special items, EPS was $0.39,* an increase of 290%
sequentially.
- Display Technologies combined
glass volume, including Corning’s wholly owned business and Samsung
Corning Precision Glass Co., Ltd. (SCP), increased 66%
sequentially. Volume in the company’s wholly owned business
improved by 101% sequentially, while SCP’s volume increased by
50%.
- Gross margin was 41%, an
increase over first-quarter gross margin of 27%.
- Equity earnings increased 85%
over the previous quarter.
Quarter Two Financial
Comparisons
Q2 2009 Q1 2009 %
Change Q2 2008 % Change Net Sales
in millions
$1,395 $989
41% $1,692 (18%) Net Income in
millions
$611 $14 4264%
$3,211 (81%) Non-GAAP Net Income
in millions*
$614 $150 309%
$782 (21%) GAAP EPS
$0.39
$0.01 3800% $2.01
(81%) Non-GAAP EPS*
$0.39 $0.10
290% $0.49 (20%)
*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 Web site.
“Global LCD television retail sales continue to be resilient
during these challenging economic times,” said Wendell P. Weeks,
chairman and chief executive officer. “This gave confidence to the
LCD supply chain to rebuild inventory during the second
quarter.”
Weeks noted that Corning initially met the increased
second-quarter demand by working off its inventory supply, “but as
demand continued to rise, we restarted some idled glass melting
capacity to help meet the industry’s increased appetite. We saw
glass volume increase by 101% at our wholly owned business and by
50% at Samsung Corning Precision quarter-over-quarter,” he said.
“Additionally, we saw growth in our other businesses and
improvement in equity earnings from Dow Corning Corporation in the
second quarter.”
Second-Quarter Segment Results
Sales in the Display Technologies segment were $673 million, an
89% increase sequentially. As expected, price declines in the
second quarter were modest. Display sales were negatively impacted
by foreign exchange rate movements this quarter.
Telecommunications segment sales were $437 million, an increase
of 14% over the previous quarter. Corning again experienced strong
demand for optical fiber and cable in China. In North America, the
company saw increased demand for its fiber-to-the-home
products.
Environmental Technologies segment sales were $132 million, an
increase of 20%, driven primarily by improved automotive product
sales in Germany, China, and the U.S. The company said that U.S.
automotive product demand was likely driven by a necessary
replenishment of the supply chain during the quarter, rather than
an increase in auto production. Government incentive programs
contributed to the sales increases in Germany and China in the
second quarter.
Specialty Materials segment sales were $71 million, up $11
million over the first quarter, due primarily to continued adoption
of Gorilla™ glass by notebook and portable electronic device
makers.
Corning’s equity earnings were $361 million, a considerable
increase over first-quarter equity earnings of $195 million. Equity
earnings from Dow Corning Corporation were $58 million versus $5
million in the first quarter, which included $29 million for
Corning’s share of a restructuring charge at Dow Corning. Equity
earnings from Samsung Corning Precision were $294 million in the
second quarter, compared to $187 million in the first quarter.
Volume increased 50% over the previous quarter and sequential glass
price declines were minor.
Looking Forward
“The resurgent demand for LCD glass is propelling us to restore
much of our previously idled production capacity as quickly as
possible to meet our customers’ needs,” said James B. Flaws, vice
chairman and chief financial officer. “Approximately 40% of our
second-quarter shipments came from existing inventory. We need to-
and have- restarted tanks to replace this inventory drawdown to
meet third-quarter demand. We believe our third-quarter glass
shipments will be flat to up slightly, compared to the very strong
second-quarter level.” Flaws reiterated that Corning expects
third-quarter glass substrate prices to be even with those of the
second quarter.
Flaws said that supply chain inventories at the end of the
second quarter have been rebuilt to levels similar to the end of
2008, as the industry prepares for a seasonally stronger second
half of the year. “We estimate that current inventory supplies are
16% less than the second quarter last year, compared to retail
demand that has been running approximately 15% ahead of a year ago.
Retail demand is forecasted to continue growing at double-digit
rates in the back half of this year. This comparison gives us some
comfort about the outlook for the remainder of the year. However,
the pace of economic recovery remains uncertain and we are being
cautious about the amount of capacity we are restarting for the
fourth quarter and for early 2010. As we receive more clarity from
our customers on their fourth-quarter outlook, we will make
decisions on our fourth-quarter capacity levels.”
“We have increased our forecast for LCD glass market volume in
2009 due to the vitality of LCD TV sales in the first half of the
year. We now estimate that total yearly volume will be around 2.3
billion square feet, or about 15% growth over last year,” he said.
Corning originally expected annual glass volume to be 2 billion
square feet and early last quarter revised it upward to a range of
2.1 billion to 2.2 billion square feet.
The company expects to see continued improvement in equity
earnings from Dow Corning, noting that silicone orders have been
improving month by month, and volumes at Hemlock Semiconductor, Dow
Corning’s consolidated subsidiary corporation, should remain
strong.
“As we enter the second half of the year, we are seeing signs
that the impact of the global recession on our businesses may be
moderating. That said, questions pertaining to the pace of economic
recovery remain. While we do not currently believe another
corporate-wide downsizing will be necessary, we are looking at
specific business unit restructuring needs,” Flaws said. “We don’t
expect the global auto industry and U.S. truck market to rebound
quickly. As a result, we are evaluating further cost reductions in
our Environmental Technologies segment later this quarter, which
may result in restructuring charges in the back half of the
year.”
“We are also working to align the level of the company’s
research, development, and engineering spending with our future
revenue estimates in what may be a relatively slow economic
recovery. As a result, restructuring charges in this area are also
possible in the fourth quarter,” Flaws noted.
Flaws added that the company expects its 2009 tax rate to be
between zero and 3%. “Looking ahead to 2010, we feel that our tax
rate could be around 10%. However, given unknowns in the rate of
economic recovery and uncertainty regarding potential changes to
the U.S. tax code, our 2010 rate could be significantly different,”
he said.
The company said 2009 capital expenditures are forecasted to be
approximately $1.1 billion. In 2010, capital expenditures are
expected to be around $600 million.
Flaws concluded, “LCD TVs have become the product of choice for
consumers and the speed at which they are replacing CRT models is
accelerating. This technology substitution is expected to fuel the
LCD glass market for several years to come. Telecommunications
carriers worldwide continue to invest in broadband network
expansions, and we are seeing rapid acceptance of our Gorilla™
glass as a cover glass for many handheld and computer applications.
These are promising signs that our businesses are poised for future
growth.”
Second-Quarter Conference Call Information
The company will host a second-quarter conference call on
Monday, July 27 at 8:30 a.m. ET. To access the call, dial (800)
553-0288 or international access call (612) 332-0636 approximately
10-15 minutes prior to the start of the call. The password is
‘QUARTER TWO’. The host is ‘SOFIO’. To listen to a live audio
webcast of the call, go to Corning’s Web site at
www.corning.com/investor_relations and click Investor Events on the
left. A replay will be available beginning at 10:30 a.m. ET and
will run through 5:00 p.m. ET, Monday, Aug. 10, 2009. To listen,
dial (800) 475-6701 or international access call (320) 365-3844.
The access code is 106323. The webcast will be archived for one
year following the call.
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. Reconciliation of these non-GAAP measures can be found
on the company’s Web site by going to
www.corning.com/investor_relations and clicking Financial Reports
on the left. Reconciliation also accompanies 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 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.
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.
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited; in millions, except
per share amounts)
Three months ended Six
months ended June 30, June 30, 2009 2008 2009 2008 Net sales
$ 1,395 $ 1,692 $ 2,384 $ 3,309 Cost of sales 820
840 1,539 1,613
Gross margin 575 852 845 1,696 Operating expenses: Selling,
general and administrative expenses 211 260 418 502 Research,
development and engineering expenses 136 163 287 314 Amortization
of purchased intangibles 2 3 5 5 Restructuring, impairment and
other charges and (credits) 165 (1 ) Asbestos litigation charge
(credit) (Note 1) 5 9 9
(318 ) Operating income (loss) 221 417 (39 ) 1,194
Equity in earnings of affiliated companies 361 367 556 679
Interest income 5 22 12 52 Interest expense (20 ) (15 ) (34 ) (33 )
Other-than-temporary impairment (OTTI) losses: Total OTTI
losses (14 ) (14 ) Portion of OTTI losses recognized in other
comprehensive income (before taxes) 13
13 Net OTTI losses recognized in
earnings (1 ) (1 ) Other income, net 41
39 61 41 Income before
income taxes 607 830 555 1,933 Benefit for income taxes 4
2,381 70 2,307
Net income attributable to Corning Incorporated $ 611
$ 3,211 $ 625 $ 4,240 Earnings per
common share attributable to Corning Incorporated: Basic (Note 2) $
0.39 $ 2.05 $ 0.40 $ 2.71 Diluted (Note
2) $ 0.39 $ 2.01 $ 0.40 $ 2.65
Dividends declared per common share $ 0.05 $ 0.05 $
0.10 $ 0.10 See accompanying notes to these
financial statements. Certain amounts for 2008 were
reclassified to conform to the 2009 presentation.
CORNING
INCORPORATED AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in millions, except
per share amounts)
June 30, December 31, 2009 2008
Assets
Current assets: Cash and cash equivalents $ 2,234 $ 1,873
Short-term investments, at fair value 841 943
Total cash, cash equivalents and short-term investments
3,075 2,816 Trade accounts receivable, net of doubtful accounts and
allowances 790 512 Inventories 647 798 Deferred income taxes 128
158 Other current assets 388 335 Total
current assets 5,028 4,619 Investments 3,168 3,056 Property,
net of accumulated depreciation 7,885 8,199 Goodwill and other
intangible assets, net 299 305 Deferred income taxes 3,080 2,932
Other assets 144 145
Total
Assets $ 19,604 $ 19,256
Liabilities
and Equity Current liabilities: Current portion of
long-term debt $ 80 $ 78 Accounts payable 502 846 Other accrued
liabilities 949 1,128 Total current
liabilities 1,531 2,052 Long-term debt 1,938 1,527
Postretirement benefits other than pensions 766 784 Other
liabilities 1,517 1,402 Total
liabilities 5,752 5,765
Commitments and contingencies Shareholders’ equity: Common stock -
Par value $0.50 per share; Shares authorized: 3.8 billion; Shares
issued: 1,613 million and 1,609 million 807 804 Additional paid-in
capital 12,619 12,502 Retained earnings 2,409 1,940 Treasury stock,
at cost; Shares held: 63 million and 61 million (1,204 ) (1,160 )
Accumulated other comprehensive loss (828 ) (643 )
Total Corning Incorporated shareholders' equity 13,803
13,443
Noncontrolling interests
49 48 Total equity 13,852
13,491
Total Liabilities and Equity $
19,604 $ 19,256 See accompanying notes to
these financial statements. Certain amounts for 2008 were
reclassified to conform to the 2009 presentation.
CORNING
INCORPORATED AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited; in millions)
Three months ended
Six months ended June 30, June 30, 2009 2008 2009 2008
Cash
Flows from Operating Activities: Net income $ 611 $ 3,211 $ 625
$ 4,240 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation 184 162
359 319 Amortization of purchased intangibles 2 3
5 5 Asbestos litigation 5 9
9 (318 ) Restructuring, impairment and other charges (credits) 165
(1 ) Stock compensation charges 32 37
67 78 Undistributed earnings of affiliated companies (345 ) (239 )
(137 ) (400 ) Deferred tax benefit (20 ) (2,471 )
(139 ) (2,473 ) Restructuring payments (42 ) (3 )
(54 ) (10 ) Customer deposits, net of (credits) issued (62 ) (71 )
(165 ) (137 ) Employee benefit payments less than (in excess of)
expense 17 11
34 (37 ) Changes in certain working capital items: Trade accounts
receivable (170 ) 4
(281 ) (46 ) Inventories 99 (41 )
138 (73 ) Other current assets (19 ) (31 )
(42 ) (52 ) Accounts payable and other current liabilities, net of
restructuring payments 68 135
(21 ) (89 ) Other, net 8 (26 )
69 (21 )
Net cash provided by operating
activities 368 690
632 985
Cash Flows from Investing
Activities: Capital expenditures (215 ) (397 )
(491 ) (864 ) Net proceeds from sale or disposal of assets 3 2 15 2
Short-term investments - acquisitions (301 ) (470 ) (405 ) (1,194 )
Short-term investments - liquidations 274 324
516 1,140
Net cash used in investing
activities (239 ) (541 )
(365 ) (916 )
Cash Flows from Financing
Activities: Net repayments of short-term borrowings and current
portion of long-term debt (3 ) (3 )
(66 ) (12 ) Proceeds from issuance of long-term debt, net 346 346
Principal payments under capital lease obligations
(9 ) Proceeds from issuance of common stock, net 7 11
12 15 Proceeds from the exercise of stock options 3 56
4 74 Repurchase of common stock (63 ) (125 ) Dividends paid (78 )
(80 ) (156 ) (158 ) Other, net 2 2
3
Net cash provided by (used in) financing
activities 277 (77 )
134 (206 ) Effect of exchange rates on cash 48
(21 )
(40 ) 96 Net increase (decrease) in cash and cash
equivalents 454 51
361 (41 ) Cash and cash equivalents at beginning of period
1,780 2,124
1,873 2,216
Cash and cash
equivalents at end of period $ 2,234 $ 2,175 $
2,234 $ 2,175 Certain amounts for 2008 were
reclassified to conform with the 2009 presentation.
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
SEGMENT RESULTS
(Unaudited; in millions)
Our
reportable operating segments include Display Technologies,
Telecommunications, Environmental Technologies, Specialty Materials
and Life Sciences. Display Telecom- Environmental
Specialty Life All Technologies munications Technologies Materials
Sciences Other Total
Three months ended June 30,
2009 Net sales $ 673 $ 437 $ 132 $ 71 $ 81 $ 1 $ 1,395
Depreciation (1) $ 109 $ 33 $ 25 $ 12 $ 4 $ 3 $ 186 Amortization of
purchased intangibles $ 2 $ 2 Research, development and engineering
expenses (2) $ 19 $ 24 $ 27 $ 12 $ 2 $ 34 $ 118 Equity in earnings
of affiliated companies $ 284 $ 2 $ 16 $ 302 Income tax (provision)
benefit (3) $ (94 ) $ (14 ) $ 14 $ 9 $ (8 ) $ 18
$ (75 ) Net income (loss) (4) $ 555 $ 18 $ (9
) $ (10 ) $ 9 $ (5 ) $ 558
Three months
ended June 30, 2008 Net sales $ 809 $ 477 $ 209 $ 104 $
87 $ 6 $ 1,692 Depreciation (1) $ 92 $ 31 $ 24 $ 7 $ 4 $ 3 $ 161
Amortization of purchased intangibles $ 3 $ 3 Research, development
and engineering expenses (2) $ 29 $ 25 $ 32 $ 11 $ 2 $ 42 $ 141
Equity in earnings of affiliated companies $ 247 $ 1 $ 19 $ 267
Income tax provision $ (64 ) $ (2 ) $ (2 ) $ (1 ) $
(1 ) $ (70 ) Net income (loss) (4) $ 685 $ 23 $ 28
$ 4 $ 16 $ (37 ) $ 719
Six
months ended June 30, 2009 Net sales $ 1,030 $ 822 $ 242
$ 131 $ 157 $ 2 $ 2,384 Depreciation (1) $ 213 $ 64 $ 49 $ 22 $ 8 $
6 $ 362 Amortization of purchased intangibles $ 5 $ 5 Research,
development and engineering expenses (2) $ 41 $ 47 $ 57 $ 23 $ 5 $
70 $ 243 Restructuring, impairment and other charges $ 34 $ 15 $ 19
$ 18 $ 7 $ 4 $ 97 Equity in earnings (loss) of affiliated companies
$ 464 $ (4 ) $ 4 $ 28 $ 492 Income tax (provision) benefit (3) $
(101 ) $ (13 ) $ 28 $ 19 $ (8 ) $ 25 $ (50 )
Net income (loss) (4) $ 773 $ 17 $ (53 ) $ (37 ) $ 17
$ (34 ) $ 683
Six months ended June
30, 2008 Net sales $ 1,638 $ 898 $ 406 $ 187 $ 168 $ 12 $ 3,309
Depreciation (1) $ 182 $ 58 $ 48 $ 15 $ 8 $ 6 $ 317 Amortization of
purchased intangibles $ 5 $ 5 Research, development and engineering
expenses (2) $ 53 $ 49 $ 65 $ 20 $ 4 $ 78 $ 269 Restructuring,
impairment and other credits $ (1 ) $ (1 ) Equity in earnings of
affiliated companies $ 454 $ 2 $ 41 $ 497 Income tax provision $
(125 ) $ (7 ) $ (7 ) $ (6 ) $ (3 ) $ (148 ) Net
income (loss) (4) $ 1,364 $ 34 $ 41 $ 0
$ 26 $ (64 ) $ 1,401 (1) Depreciation expense
for Corning’s reportable segments includes an allocation of
depreciation of corporate property not specifically identifiable to
a segment. (2) Research, development, and engineering
expense includes direct project spending which is identifiable to a
segment. (3) Effective January 1, 2009, we began providing
U.S. income tax expense (or benefit) on U.S. earnings (losses) due
to the change in our conclusion about the realizability of our U.S.
deferred tax assets in 2008. As a result of the change in our tax
position, we adjusted the allocation of taxes to our operating
segments in 2009 to reflect this difference. (4) Many of
Corning’s administrative and staff functions are performed on a
centralized basis. Where practicable, Corning charges these
expenses to segments based upon the extent to which each business
uses a centralized function. Other staff functions, such as
corporate finance, human resources and legal are allocated to
segments, primarily as a percentage of sales. In the three and six
months ended June 30, 2008, net income of the Display Technologies
segment included a $12 million litigation settlement charge.
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
SEGMENT RESULTS
(Unaudited; in millions)
A reconciliation of reportable
segment net income to consolidated net income follows (in
millions):
Three months ended
Six months ended June 30, June 30, 2009
2008 2009 2008 Net income of reportable
segments $ 563 $ 756 $ 717 $ 1,465 Non-reportable segments (5) (37)
(34) (64) Unallocated amounts:
Net financing costs(1)
(31) 4 (51) 13
Stock-based compensation
expense
(32) (37) (67) (78) Exploratory research (11) (17) (31) (35)
Corporate contributions (6) (7) (15) (18)
Equity in earnings of
affiliated
companies, net of
impairments(2)
59 100 64 182
Asbestos litigation(3)
(5) (9) (9) 318
Other corporate items(4)
79 2,458 51
2,457 Net income $ 611 $ 3,211 $ 625 $
4,240 (1) Net financing costs include interest income,
interest expense, and interest costs and investment gains
associated with benefit plans. (2) Includes the equity
earnings of Dow Corning Corporation. (3) In the three and
six months ended June 30, 2009, Corning recorded charges of $5
million and $9 million, respectively, to adjust the asbestos
liability for the change in value of certain components of the
Amended PCC Plan and the estimated liability for non-PCC asbestos
claims. In the three months ended June 30, 2008, Corning recorded a
charge of $9 million to adjust the asbestos liability for the
change in value of certain components of the Amended PCC Plan and
the estimated liability for non-PCC asbestos claims. In the first
quarter of 2008, Corning reduced its liability for asbestos
litigation by $327 million as a result of the increase in the
likelihood of a settlement under recently proposed terms and a
corresponding decrease in the likelihood of a settlement under
terms established in 2003. (4) In the six months ended June
30, 2009, other corporate items included $68 million ($44 million
after-tax) of restructuring charges. In the three months ended June
30, 2008, Corning recorded a $2.4 billion tax benefit from the
release of a valuation allowance on U.S. tax benefits due to
sustained profitability and positive future earnings projections
for the U.S. entities.
CORNING INCORPORATED AND
SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
(Unaudited)
1.
Asbestos Litigation On March 28, 2003, Corning
announced that it had reached agreement with the representatives of
asbestos claimants for the settlement of all current and future
asbestos claims against Corning and Pittsburgh Corning Corporation
(PCC) which might arise from PCC products or operations (the 2003
Plan). On December 21, 2006, the Bankruptcy Court issued an order
denying confirmation of the 2003 Plan. On January 10, 2008, some of
the parties in the proceeding advised the Bankruptcy Court that
they had made substantial progress on an amended plan of
reorganization (the Amended PCC Plan) that resolved issues raised
by the Court in denying the confirmation of the 2003 Plan.
As a result of progress in the
parties’ continuing negotiations, Corning believes the Amended PCC
Plan now represents the most probable outcome of this matter and
the probability that the 2003 plan will become effective has
diminished. The proposed settlement under the Amended PCC Plan
requires Corning to contribute its equity interest in PCC and
Pittsburgh Corning Europe, N.V. (PCE) and to contribute a fixed
series of cash payments recorded at present value. Corning will
have the option to contribute shares rather than cash, but the
liability is fixed by dollar value and not number of shares. As a
result, the estimated asbestos litigation liability is no longer
impacted by movements in the value of Corning common stock. The
Amended PCC Plan does not include non-PCC asbestos claims that may
be or have been raised against Corning. Corning has recorded an
additional amount for such claims in its estimated asbestos
litigation liability.
In the second quarter of 2009, we recorded charges of
$5 million ($3 million after-tax) to adjust the asbestos litigation
liability for the change in value of the components of the Amended
PCC Plan.
2. Weighted Average Shares
Outstanding Weighted average shares outstanding are as
follows (in millions):
Three months ended
Three months
June 30,
ended
2009 2008
March 31, 2009
Basic 1,550 1,569 1,548 Diluted 1,567 1,600 1,559
Diluted used for non-GAAP
measures
1,567 1,600 1,559
CORNING INCORPORATED AND SUBSIDIARY
COMPANIES
QUARTERLY SALES
INFORMATION
(Unaudited; in millions)
2009 Three Six
Months Months Ended Ended March 31 June
30 June 30 Display Technologies $ 357 $
673 $ 1,030
Telecommunications Fiber and cable 192
235 427 Hardware and equipment 193 202 395 385
437 822
Environmental Technologies Automotive 64 85
149 Diesel 46 47 93 110 132 242
Specialty Materials 60 71 131
Life Sciences 76
81 157
Other 1 1 2
Total $ 989 $ 1,395 $ 2,384
2008 Q1
Q2 Q3 Q4 Total Display
Technologies $ 829 $ 809 $ 696 $ 390 $ 2,724
Telecommunications Fiber and cable 214 248 258 200 920
Hardware and equipment 207 229 238 205
879 421 477 496 405 1,799
Environmental
Technologies Automotive 137 132 112 77 458 Diesel 60
77 65 51 253 197 209 177 128 711
Specialty Materials 83 104 101 84 372
Life
Sciences 81 87 83 75 326
Other 6 6
2 2 16
Total $ 1,617 $ 1,692 $
1,555 $ 1,084 $ 5,948 The above supplemental information is
intended to facilitate analysis of Corning’s businesses.
CORNING
INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended June 30,
2009
(Unaudited; amounts in millions,
except per share amounts)
Corning’s net income and earnings per
share (EPS) excluding special items for the second quarter of 2009
are non-GAAP financial measures 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 net income and 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 these non-GAAP measures and the directly related GAAP
measures.
Per
Income Before
Net Share
Income Taxes
Income Earnings per share (EPS) and net income,
excluding special items $ 0.39 $ 612 $ 614 Special items:
Asbestos litigation (a) - (5) (3) Total
EPS and net income $ 0.39 $ 607 $ 611 (a) In the
second quarter of 2009, Corning recorded a charge of $5 million ($3
million after-tax) to adjust the asbestos liability for change in
value of the components of the Amended PCC Plan.
CORNING
INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended March 31,
2009
(Unaudited; amounts in millions,
except per share amounts)
Corning’s net income and earnings per
share (EPS) excluding special items for the first quarter of 2009
are non-GAAP financial measures 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 net income and 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 these non-GAAP measures and the directly related GAAP
measures.
Income (Loss)
Per
Before
Net Share
Income Taxes
Income Earnings per share (EPS) and net income,
excluding special items $ 0.10 $ 146 $ 150 Special items:
Restructuring charges (a) (0.07) (165) (107) Asbestos
litigation (b) - (4) (2) Equity in earnings of affiliated
companies (c) (0.02) (29) (27) Total
EPS and net income $ 0.01 $ (52) $ 14 (a) In the
first quarter of 2009, Corning recorded a charge of $165 million
($107 million after-tax), which was comprised primarily of
severance costs, special termination benefits and outplacement
services for a corporate-wide restructuring plan. (b)
In the first quarter of 2009, Corning recorded a charge of $4
million ($2 million after-tax) to adjust the asbestos liability for
change in value of the components of the Amended PCC Plan.
(c) In the first quarter of 2009, equity in earnings of
affiliated companies included a charge of $29 million ($27 million
after-tax) for our share of restructuring charges at Dow Corning
Corporation.
CORNING INCORPORATED AND SUBSIDIARY
COMPANIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended June 30,
2008
(Unaudited; amounts in millions,
except per share amounts)
Corning’s net income and earnings per
share (EPS) excluding special items for the second quarter of 2008
are non-GAAP financial measures 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 net income and 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 these non-GAAP measures and the directly related GAAP
measures.
Per
Income Before
Net Share
Income Taxes
Income Earnings per share (EPS) and net income,
excluding special items $ 0.49 $
851
$ 782 Special items: Asbestos litigation (a) - (9 ) (9 )
Litigation settlement (b) (0.01 ) (12 ) (12 )
Valuation allowance release (c) 1.53 -
2,450 Total EPS and net income $ 2.01 $
830
$ 3,211 (a) In the second quarter of
2008, Corning recorded a charge of $9 million to adjust the
asbestos liability for the change in value of certain components of
the Amended PCC Plan and the estimated liability for non-PCC
asbestos claims. (b) In the second quarter of 2008,
Corning recorded a charge of $12 million to settle litigation
associated with our Display Technologies segment. (c)
In the second quarter of 2008, Corning recorded a valuation
allowance release of $2.4 billion to reflect the expected
realizability of U.S. deferred tax assets in future years.
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three and Six Months Ended June
30, 2009
(Unaudited; amounts in
millions)
Corning’s free cash flow
financial measure for the three and six months ended June 30, 2009
is a non-GAAP financial measures 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 financial measures are 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
measures.
Three
Six
months ended
months ended
June 30, 2009
June 30, 2009
Cash flows from operating activities $ 368 $ 632
Less: Cash flows from investing activities (239 ) (365 )
Plus: Short-term investments - acquisitions 301 405 Less:
Short-term investments - liquidations (274 ) (516 )
Free cash flow $ 156 $ 156
Grafico Azioni Corning (NYSE:GLW)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Corning (NYSE:GLW)
Storico
Da Lug 2023 a Lug 2024