Company reaffirms outlook for strong 2018
CORNING, N.Y. - Corning
Incorporated (NYSE: GLW) today announced results for its
first-quarter 2018 ended March 31, 2018.
News Summary:
· First-quarter
results provide a solid start to an expected strong 2018
-
GAAP and core sales of $2.5 billion, up 5% and 4% respectively year
over year
-
GAAP loss per share of $0.72 reflected a non-cash, mark-to-market
loss associated with the company's currency-hedging contracts
-
Core EPS of $0.31
· Expectations
for a strong 2018 unchanged; on track to reach approximately $11
billion in full-year sales as investments pay off with second-half
capacity and margin expansion
-
Continued growth expected in Optical Communications, Specialty
Materials, Environmental Technologies and Life Sciences
segments
-
Display pricing environment best in a decade; expect to reach
important milestone as annual price declines improve to a
mid-single-digit percentage in 2018
· Continued
progress on Strategy and Capital Allocation Framework
-
Returned $953 million to shareholders in first-quarter 2018, for a
total of $10 billion since the Framework's introduction
-
Investing to position businesses to meet short- and long-term sales
growth opportunities
"Our first-quarter results provide a strong start
to 2018, and mark important progress in the continuing execution of
our Strategy and Capital Allocation Framework," said Wendell P.
Weeks, chairman, chief executive officer, and president. "We
continue to run at full capacity in several of our businesses and
have multiple capacity-expansion initiatives underway to support
committed customer demand. As production ramps, the benefits of
these initiatives are expected to contribute to accelerating sales
and profit growth in the second half of 2018."
Strategy and Capital Allocation
Framework Progress
"Corning's progress on all Framework objectives remains excellent,"
Weeks continued. "We are on track to deliver both near- and
long-term growth."
Corning's Framework outlines the company's
2016-2019 leadership priorities. Under the Framework, Corning plans
to deliver more than $12.5 billion to shareholders while investing
$10 billion in growth opportunities. Since it was announced in
October 2015, the company has returned $10 billion to shareholders,
including $953 million in the first quarter.
Highlights of first-quarter progress include customer and platform
wins as well as new product- and market-development advancements.
For example, Corning:
· Announced a
new high-volume manufacturing facility in Durham County, North
Carolina, to produce Corning Valor(TM) Glass, a revolutionary
pharmaceutical packaging solution; progress supported by Merck
& Co., Pfizer Inc., and other customers
· Introduced
significant new products for hyperscale data center and carrier
environments:
- Rocket Ribbon(TM)
extreme density cable enables up to 30% faster installation and
more capacity in the same duct space vs. other high-density ribbon
cables
- TXF(TM) fiber,
demonstrated with British Telecom and Infinera to prove superiority
for 400G transmission and the ability to deliver up to 55 terabits
per second per fiber
· Continued
adding value to mobile consumer electronic devices through glass
and component innovation:
- Thirteen mobile devices
with Corning®
Gorilla® Glass
introduced at Mobile World Congress, including five with Gorilla
Glass 5 on both front and back
- Vibrant®
Gorilla Glass wins with Acer (Swift 3 notebook) and Motorola (Style
Shell Moto Mods, which are swappable back covers for Moto Z
smartphones)
· Won
additional gasoline particulate filter (GPF) platforms,
accelerating Corning's market leadership in this important new
technology
· Announced a
company record 563 patents issued in 2017; augmenting Corning's
leadership in glass, ceramics, and optical physics innovation
Corning is investing across its market-access
platforms to capture short- and long-term sales growth
opportunities:
-
Reaching $5 billion in sales by 2020 in Optical
Communications
-
Doubling sales over the next several years in
Mobile Consumer Electronics
-
Maintaining stable returns and winning new
categories in Display
-
Building a $500 million GPF business and
creating a new glass business in Automotive
-
Growing the base and creating a significant
pharmaceutical packaging business in Life Sciences Vessels.
Tony Tripeny, senior vice president and chief
financial officer, noted: "As we have communicated previously,
Corning is in a phase of our Strategy and Capital Allocation
Framework in which we are investing intensely for long-term secular
growth. Execution is on target, and several of our larger expansion
projects are coming on line. We look forward to realizing
significant sales and profitability benefits as this new capacity
ramps during the second half of the year."
First-Quarter 2018 Results and
Comparisons
(In millions, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018 |
|
Q4
2017 |
|
%
change |
|
Q1
2017 |
|
%
change |
GAAP
Net Sales |
|
$ |
2,500 |
|
$ |
2,637 |
|
(5%) |
|
$ |
2,375 |
|
5% |
GAAP
Net (Loss) Income |
|
$ |
(589) |
|
$ |
(1,412) |
|
58% |
|
$ |
86 |
|
nm |
GAAP
EPS |
|
$ |
(0.72) |
|
$ |
(1.66) |
|
57% |
|
$ |
0.07 |
|
nm |
Core
Sales |
|
$ |
2,513 |
|
$ |
2,675 |
|
(6%) |
|
$ |
2,421 |
|
4% |
Core
Earnings |
|
$ |
299 |
|
$ |
455 |
|
(34%) |
|
$ |
376 |
|
(20%) |
Core EPS |
|
$ |
0.31 |
|
$ |
0.46 |
|
(33%) |
|
$ |
0.36 |
|
(14%) |
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. Beginning in the first quarter of 2018, Corning changed its
GAAP measurement of segment sales and segment net income, and has
recast prior periods presented based on this new methodology. See
"Corning Provides Recast of 2017 GAAP Segment Data" for
details.
Segment Results and
Outlook
Display Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018 |
|
Q4
2017 |
|
%
change |
|
Q1
2017 |
|
%
change |
Net
Sales |
|
$ |
745 |
|
$ |
783 |
|
(5%) |
|
$ |
782 |
|
(5%) |
Net
Income Before Tax |
|
$ |
234 |
|
$ |
263 |
|
(11%) |
|
$ |
310 |
|
(25%) |
Net Income |
|
$ |
185 |
|
$ |
208 |
|
(11%) |
|
$ |
245 |
|
(24%) |
First-quarter Display Technologies net sales were
$745 million and net income was $185 million. In the first quarter,
LCD glass volume declined by a low-single digit percentage
sequentially, in line with the market and normal seasonality.
The first-quarter Display Technologies sequential
price decline was the most favorable since 2010. The improvements
in LCD glass pricing are expected to continue throughout 2018,
reaching an important milestone as annual price declines improve to
a mid-single-digit percentage.
For full-year 2018, Corning expects the LCD glass market volume
growth to be in the mid-single digit percentages, as television
screen size growth continues. The company expects Corning's volume
to grow faster than the market as Corning ramps production in
tandem with BOE's Gen 10.5 demand in Hefei, China.
Optical Communications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018 |
|
Q4
2017 |
|
%
change |
|
Q1
2017 |
|
%
change |
Net
Sales |
|
$ |
886 |
|
$ |
928 |
|
(5%) |
|
$ |
818 |
|
8% |
Net
Income Before Tax |
|
|
143 |
|
|
130 |
|
10% |
|
|
145 |
|
(1%) |
Net Income |
|
$ |
109 |
|
$ |
99 |
|
10% |
|
$ |
110 |
|
(1%) |
Optical Communications first-quarter 2018 net
sales were up 8% to $886 million, and net income was consistent
with last year's first quarter. Sales growth was driven by data
center and carrier businesses.
For full-year 2018, Optical Communications sales
are expected to increase by about 10% over last year, excluding any
contribution from the pending acquisition of 3M's Communications
Markets Division.
Specialty Materials:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018 |
|
Q4
2017 |
|
%
change |
|
Q1
2017 |
|
%
change |
Net
Sales |
|
$ |
278 |
|
$ |
393 |
|
(29%) |
|
$ |
300 |
|
(7%) |
Net
Income Before Tax |
|
|
58 |
|
|
111 |
|
(48%) |
|
|
72 |
|
(19%) |
Net Income |
|
$ |
46 |
|
$ |
88 |
|
(48%) |
|
$ |
57 |
|
(19%) |
Specialty Materials first-quarter 2018 net sales
were $278 million and net income was $46 million.
The company expects year-over-year sales growth
for Specialty Materials in 2018, with the rate dependent on
customer adoption of Corning's innovations, including the next
generation of Corning®
Gorilla® Glass, which
remains on track for launch during the second half of 2018.
Environmental
Technologies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018 |
|
Q4
2017 |
|
%
change |
|
Q1
2017 |
|
%
change |
Net
Sales |
|
$ |
322 |
|
$ |
291 |
|
11% |
|
$ |
275 |
|
17% |
Net
Income Before Tax |
|
|
66 |
|
|
54 |
|
22% |
|
|
56 |
|
18% |
Net Income |
|
$ |
52 |
|
$ |
43 |
|
21% |
|
$ |
44 |
|
18% |
Environmental Technologies first-quarter 2018 net
sales were up 17% to $322 million, and net income was up 18% to $52
million, compared with last year's first quarter. Growth was driven
by continued strength in the automotive market, ongoing
improvements in the heavy-duty diesel market, and the ramp of the
GPF business.
For full-year 2018, Environmental Technologies
sales are expected to increase by about 10% over last year.
Life Sciences:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018 |
|
Q4
2017 |
|
%
change |
|
Q1
2017 |
|
%
change |
Net
Sales |
|
$ |
232 |
|
$ |
225 |
|
3% |
|
$ |
210 |
|
10% |
Net
Income Before Tax |
|
|
34 |
|
|
30 |
|
13% |
|
|
30 |
|
13% |
Net Income |
|
$ |
27 |
|
$ |
24 |
|
13% |
|
$ |
24 |
|
13% |
In Life Sciences, first-quarter 2018 net sales
were up 10%, and net income was up 13%, as the business continued
to outpace market growth. For full-year 2018, sales are expected to
grow by a mid-single-digit percentage.
Upcoming Investor
Events
Corning will hold its annual meeting of shareholders at the Corning
Museum of Glass auditorium on Thursday, April 26, 2018, at 11 a.m.
EDT. A live audio webcast will be available the day of the event.
To access the audio webcast, please go to Corning's investor
relations website at investor.corning.com, click "Events and
Presentations" under the "News and Events" tab and select the
annual shareholder meeting.
On May 16, Corning will attend the 46th Annual
J.P. Morgan Global Technology, Media and Communications Conference
in Boston. And on May 31, Corning will attend Bernstein's 34th
Annual Strategic Decisions Conference in New York City.
First-Quarter Conference Call
Information
The company will host its first-quarter conference call on Tuesday,
April 24, at 8:30 a.m. EDT. To participate, please call toll free
(800) 230-1074 or for international access call (612) 288-0329
approximately 10-15 minutes prior to the start of the call. The
host is "NICHOLSON." To listen to a live audio webcast of the call,
go to Corning's investor relations website at investor.corning.com,
click "Events and Presentations" under the "News and Events" tab
and select the first-quarter conference call. A webcast replay will
be available 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 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. Detailed
reconciliations outlining the differences between these non-GAAP
measures and the most directly comparable GAAP measure can be found
on the Corning's investor relations website at
investor.corning.com, and clicking "Quarterly Results" under the
"Financials" tab. These reconciliations also accompany this news
release.
Caution Concerning
Forward-Looking 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 business, financial, economic and
political conditions; tariffs and import duties; currency
fluctuations between the U.S. dollar and other currencies,
primarily the Japanese yen, New Taiwan dollar, euro, Chinese yuan,
and South Korean won; product demand and industry capacity;
competitive products and pricing; availability and costs of
critical components and materials; 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; possible disruption in commercial activities due to
terrorist activity, cyber-attack, armed conflict, political or
financial instability, natural disasters, or major health concerns;
unanticipated disruption to equipment, facilities, IT systems or
operations; effect of regulatory and legal developments; ability to
pace capital spending to anticipated levels of customer demand;
rate of technology change; ability to enforce patents and protect
intellectual property and trade secrets; adverse litigation;
product and components performance issues; retention of key
personnel; customer ability, most notably in the Display
Technologies segment, to maintain profitable operations and obtain
financing to fund their ongoing operations and manufacturing
expansions and pay their receivables when due; loss of significant
customers; changes in tax laws and regulations including the Tax
Cuts and Jobs Act of 2017; and the potential impact of legislation,
government regulations, and other government action and
investigations.
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. 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.
Digital Media
Disclosure
In 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
(http://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
Incorporated
Corning (www.corning.com) is one of the world's leading innovators
in materials science, with a more than 165-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 our customers capture new opportunities in dynamic
industries. Today, Corning's markets include optical
communications, mobile consumer electronics, display technology,
automotive, and life sciences vessels. Corning's industry-leading
products include damage-resistant cover glass for mobile devices;
precision glass for advanced displays; optical fiber, wireless
technologies, and connectivity solutions for state-of-the-art
communications networks; trusted products to accelerate drug
discovery and delivery; and clean-air technologies for cars and
trucks.
Media Relations
Contact:
M. Elizabeth Dann
(607)
974-4989
dannme@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
Q1 2018 Financials
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
Grafico Azioni Corning (NYSE:GLW)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Corning (NYSE:GLW)
Storico
Da Lug 2023 a Lug 2024