Corning Incorporated GLW +25.86% today announced preliminary third-quarter 2013 results. Corning is providing this preview to facilitate communications with investors regarding its announcement today that it has entered into a series of agreements with Samsung Display Co., Ltd., which is intended to broaden product and technology collaborations. Please see "Corning and Samsung Strengthen Strategic Collaborations" for details.
Performance highlights of the third quarter of 2013 include:
- Core earnings per share of $0.33*, an 18% increase over the third quarter of 2012 of $0.28*. GAAP earnings per share of $0.28, compared with $0.36 a year ago.
- Core sales of $2.1 billion*, an increase of 10% over the same period of 2012 of $1.9 billion*. Net sales (GAAP) for the third quarter of 2013 and 2012 were $2.1 billion and 2.0 billion, respectively.
- In the Display Technologies segment, third-quarter LCD glass sequential price declines remained moderate, as expected. LCD glass volume was up slightly sequentially, driven by higher-than-expected demand in the wholly owned business.
- Sales in all other segments were in line with expectations.
- Core gross margin was 44%*, up nearly two percentage points year over year and up slightly sequentially.
Remarking on the third quarter, Wendell P. Weeks, chairman, chief executive officer, and president, said, "In a strong third quarter, Corning achieved its fourth consecutive quarter of year-over-year core EPS growth by improving core profitability in our non-display businesses and by tightly controlling operational expenses. Additionally, we are pleased with another quarter of moderate LCD glass price declines. We have made significant progress on our strategy to return to earnings growth."
The company expects fourth-quarter results to be lower sequentially, mainly driven by normal seasonality in its Telecommunications, Life Sciences, and Environmental Technologies segments. Adding to the seasonality impact is a significant year-over-year decrease in fiber sales in North America and China, and slower-than-expected construction of the National Broadband Network (NBN) in Australia. In Display Technologies, the company expects moderate sequential price declines and sequential volumes to be down slightly for its LCD glass.
Corning will discuss third-quarter results and fourth-quarter outlook in more detail during its previously scheduled earnings call at 8:30 a.m. ET on Wednesday, Oct. 30, 2013.
*These are non-GAAP financial measures. The reconciliation between GAAP and non-GAAP measures is provided in the tables following this news release, as well as on the company's investor relations website. Core performance metrics (non-GAAP) are adjusted to exclude the impact of changes in Japanese yen to U.S. dollar exchange rate and other yen transactions, equity earnings from the polysilicon business of Dow Corning Corporation, as well as other special items. See "Use of Non-GAAP Financial Measures" in our Form 8-K filed on October 22, 2013, for details on Core Performance measures.
Presentation of Information in this News Release
Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP. Corning's non-GAAP financial measures exclude the impact of items that are driven by general economic conditions and events that do not reflect the underlying fundamentals and trends in the Company's operations. The company believes presenting non-GAAP financial measures assists in analyzing financial performance without the impact of items that may obscure trends in the company's underlying performance. Detailed reconciliations outlining the differences between these non-GAAP measures and the most directly comparable GAAP measure can be found on the company's website by going to www.corning.com/investor_relations and clicking Financial Reports on the left. These reconciliations also accompany this news release.
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.
