Corning Incorporated (NYSE: GLW) Chairman, Chief Executive Officer, and President Wendell P. Weeks will update investors on the company’s growth prospects today at Citi’s 2013 Annual Tech Conference in New York, N.Y. Weeks’ presentation will include expectations for continued growth of high-performance displays, touch devices, and optical solutions for bandwidth investments driven by key trends; and recent Corning product introductions for these markets. Corning’s comments at the conference can be heard via webcast by going to www.corning.com/investor_relations and clicking Investor Events on the left.
Weeks will outline growth trends in smartphones, tablets, and notebooks for the consumer electronics market, as well as the incredible amount of data that is being created, moved, and accessed, leading to increased investment in optical solutions by telecommunications networks. “Consumers are demanding a world with greater communication, collaboration, and connectivity. This translates to life like displays, intuitive touch interfaces, and seamless delivery of real-time information. Our scientific and engineering capabilities, in combination with our culture, uniquely position us to lead with our specialty glass and optical solutions,” Weeks will say.
Building on three consecutive quarters of year-over-year core earnings growth, Corning anticipates that core earnings per share in the third quarter will increase versus a year ago. Weeks will explain that the company is pleased with the progress it has made to manage costs, stabilize its LCD glass business, return to earnings growth, and advance new product programs. He will reiterate the company’s expectations for the third quarter. Specifically, the company anticipates that LCD glass volumes, at its wholly-owned business and Samsung Corning Precision Materials Co., Ltd. combined, are expected to be consistent to up slightly sequentially as the supply chain prepares for the fourth-quarter holidays. LCD glass price declines for the third quarter are expected to remain moderate, similar to second quarter declines. Telecommunications, Specialty Materials, Environmental Technologies, and Life Sciences segments are also tracking to expectations. The company’s focus on manufacturing efficiencies and spending controls is expected to boost core gross margin to 43% in the quarter.
Today, the company is providing additional information to supplement the reconciliations to GAAP on the company’s website. As a reminder, Corning uses core performance measures for financial reporting to provide investors a clear view of the company’s core operating results. The core performance metrics exclude the impact of changes in the Japanese-yen-to-U.S.-dollar exchange rate; the results of the polysilicon business of Corning’s affiliate, Dow Corning Corporation; as well as other special items. Corning’s core performance results are now reported on a constant-yen basis and exclude the impact from yen-denominated hedges. These core performance measures are non-GAAP financial measures.
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.