Corning Incorporated (NYSE: GLW) announced today that it has largely completed the previously announced acquisition of substantially all of the Communication Markets Division (CMD) from 3M Company. Corning anticipates closing the sale of the remaining telecommunications system integration services business later in 2018, subject to customary closing conditions and regulatory approvals.
The acquisition extends Corning Optical Communications’ market reach and access to global customers, particularly in key growth areas in Europe, the Middle East and Asia; the Central and Latin America regions; and the in-building network market segment. The acquisition also expands the optical solutions Corning can provide existing customers through CMD’s high-bandwidth portfolio.
Corning expects the business to generate approximately $400 million in sales, and $0.07 to $0.09 earnings per share (EPS) annually, beginning in 2019. For 2018, Corning expects the acquisition to provide an additional $200 million in sales and anticipates one-time integration costs will result in neutral EPS.
“We are excited to welcome our new colleagues to the Corning family and look forward to the telecommunications system integration services team joining us shortly,” said Clark S. Kinlin, executive vice president, Corning Optical Communications. “As we continue to grow our leadership position in optical communications, the combined force of our people, portfolio, and co-innovation engine strengthens our ability to transform the way the world connects. Our customers around the world count on us to provide what they need to get ahead. We are continually expanding our capabilities and innovating to increase deployment speed and network capability, while reducing the customers’ total cost of ownership.”
Acquiring this business aligns with Corning’s Strategy and Capital Allocation Framework, which includes investing approximately $1 billion to $3 billion in acquisitions. The acquisition is also expected to contribute to the goal of growing Corning Optical Communications’ revenue to $5 billion by 2020.
Additional information is provided on Corning’s web disclosures page.
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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 effects of acquisitions, dispositions and other similar transactions by the Company, 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.
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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.