In October 2015, Corning announced a Strategy and Capital Allocation Framework that reflects the company’s financial and operational strengths, as well as its ongoing commitment to capital stewardship.
Recognizing the company’s significant progress across multiple fronts, the Framework was updated in June 2016. Corning now expects to generate and deploy more than $26 billion through 2019, up from the previous plan to deploy more than $22 billion.
The Strategic and Capital Allocation Framework consists of two primary actions:
- Return more than $12.5 billion to shareholders through share repurchases and increased dividends. As part of this plan, Corning intends to target an adjusted debt-to-EBITDA ratio of two times, and to reduce its global cash to approximately $2 billion.
- Invest approximately $10 billion in Corning’s focused portfolio. Over the four years, Corning will concentrate its RD&E investment, capital spending, and strategic M&A on a cohesive set of 3 core technologies, 4 manufacturing & engineering platforms, and 5 market-access platforms. Corning, already a leader in these areas, believes its focused-portfolio approach will allow it to generate substantial growth and returns for investors.
Recent successes include cash distributions, strategic transactions, product introductions, moderating pricing environment in Display, and our advancement of lowest cost manufacturing positions.