Corning’s Strategy and Capital Allocation Framework Model Explained | Investor Relations | Corning

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Corning’s Strategy and Capital Allocation Framework Explained

Corning’s Strategy Explained

Focusing resources to maximize profits and investor value

As a company that has weathered the changing tides of global markets and trends for more than 160 years, Corning will continue to increase its probability of success and maximize the return on innovation.

Focused around the core of what Corning does – invent, make, and sell – Corning’s new Strategy and Capital Allocation Framework is based on three core technologies, four manufacturing and engineering platforms, and five market-access platforms. This framework centers on creating value, generating the greatest amount of cash flow, and managing through global economic shifts.

“By focusing our portfolio and managing it more cohesively, we are ultimately enhancing our value," said Tony Tripeny, chief financial officer. "In the process, we will reward our shareholders with consistent, significant distributions.”

"'Focusing Our Portfolio' means that 80 percent or more of our resources go to opportunities that use at least two of the three columns. Our probability of success increases as we apply more of these best-in-the-world capabilities. Our cost of innovation declines as we reapply our talent and repurpose our assets."

- Wendell P. Weeks, CEO and chairman

Three Core Technologies

Corning’s unparalleled expertise in three materials science realms – specialty glass, ceramics, and optical physics – allows the company to collaborate closely with its customers to solve tough technology problems.

"We create value by inventing category-defining products, using transformative manufacturing platforms, and building strong, trust-based relationships with the world's leading customers," said Jeff Evenson, chief strategy officer. "That process has served us well not only for the last decade of outstanding industrial performance, but for more than 160 years."

Four Manufacturing and Engineering Platforms

Corning uses four manufacturing and engineering platforms to reapply its talents, repurpose assets, and yield innovations that give us our competitive advantage – precision forming, vapor deposition, fusion, and extrusion.

"On average, we invest in research and development at slightly more than twice the rate of our peers," said Wendell P. Weeks, CEO and chairman. "That investment provides an attractive return by supporting greater profitability."

Five Market-Access Platforms

Products stemming from the RD&E process are produced through a unique combination of material and process innovation, fitting one of the five market-access platforms - optical communications, mobile consumer electronics, display, automotive, and life sciences vessels.

"When we combine a variety of capabilities to derive products, we build dramatically higher competitive barriers, enjoying market-leading positions and margins," said Evenson.

Keeping this new Strategy and Capital Allocation Framework at the heart of our business and focusing our portfolio with a more cohesive management, Corning should continue to thrive as one of the world's leading innovators in materials science for another 160 years.

Published November 2015

Video Series

Corning's Strategy and Capital Allocation Framework

Corning's Capital Stewardship Plan

Corning's Capital Stewardship Plan

November 2015 - Corning's chief financial officer, Tony Tripeny, explains Corning's capital stewardship plan and how Corning plans to increase shareholder returns and continue to invest in its focused portfolio.

November 2015 - Corning's chief financial officer, Tony Tripeny, explains Corning's capital stewardship plan and how Corning plans to increase shareholder returns and continue to invest in its focused portfolio.

Corning’s Four-Year Strategy and Capital Allocation Framework

Corning’s Four-Year Strategy and Capital Allocation Framework

November 2015 - Corning's chief strategy officer, Dr. Jeffrey Evenson, discusses Corning's four-year Strategy and Capital Allocation Framework.

November 2015 - Corning's chief strategy officer, Dr. Jeffrey Evenson, discusses Corning's four-year Strategy and Capital Allocation Framework.

Corning Introduces New CFO, Tony Tripeny

Corning Introduces New CFO, Tony Tripeny

November 2015 - Corning's new chief financial officer, Tony Tripeny, explains his new role in relation to Corning's four-year Strategy and Capital Allocation Framework.

November 2015 - Corning's new chief financial officer, Tony Tripeny, explains his new role in relation to Corning's four-year Strategy and Capital Allocation Framework.