Corning Announces Increased Quarterly Dividend and New $2 Billion Share Repurchase Program
CORNING, N.Y., April 24, 2013 – Corning Incorporated’s (NYSE:GLW) Board of Directors approved an increase in the company’s quarterly common stock dividend. Corning’s second quarter dividend will rise to $0.10 per share of common stock held, versus $0.09 per share previously.
The second-quarter dividend will be payable on June 28, 2013 to holders of record on May 31, 2013. Corning previously increased its dividend payment to $0.09 per share from $0.075 in October 2012. It is the third dividend increase in the past 18 months.
Additionally, the board authorized a share repurchase program to acquire up to $2 billion of the company’s common stock from time to time through open market or private transactions. The stock repurchase authorization expires on Dec. 31, 2014. This new program is incremental to repurchases totaling $1.5 billion completed in December 2012.
“We believe the future for Corning is very bright. Our business results are improving, and we have seen two consecutive quarters of year-over-year core profitability improvements*. In the display industry, we have stabilized our market share, moderated price declines and we are reestablishing positive momentum in the business. And, we are seeing positive signs of earnings growth across all our other businesses,” Wendell P. Weeks, chairman, chief executive officer and president, said.
“With our substantial operating cash flow, coupled with our projected lower capital spending, we believe the time is right to focus our free cash flow* to enhance total shareholder returns for our investors with these actions,” he said.
Weeks added, “We continue to believe the company’s current stock price represents a significant discount to the real value of Corning’s businesses. The board’s decision to repurchase shares reflects our belief that the long-term value of our businesses is substantially greater than our current share price.”
The latest dividend increase and the new share repurchase plan represent an approximately $3.2 billion commitment to shareholders for 2013 and 2014.
* These are non-GAAP financial measures. The reconciliation between GAAP and non-GAAP measures can be found on the company’s investor relations website.
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 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 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 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