Actionable news
0
All posts from Actionable news
Actionable news in GLW: CORNING INCORPORATED,

Corning: For Release –– October 27, 2015

The following excerpt is from the company's SEC filing.

Corning Reports Third Quarter 2015 Results and Announces Strategic and Capital Allocation Framework Designed to Return More Than $10 Billion to Shareholders Through 2019

CORNING, N.Y. —

Corning Incorporated (NYSE: GLW) announced today a strategic and capital allocation framework designed to return more than $10 billion to shareholders through 2019, and also reported results for the third quarter ended Sept. 30, 2015.

Wendell P. Weeks, chairman, chief executive officer and president, said, “Corning is announcing a strategic and capital allocation plan that reflects the financial and operational strengths of our company, as well as our ongoing commitment to capital stewardship. Through 2019, we expect to deploy more than $20 billion by returning greater than $10 billion to shareholders, and by investing approximately $10 billion in opportunities to grow and sustain our leadership positions.”

As a first step to delivering the plan, Corning’s Board of Directors increased the company’s share repurchase authorization by $4 billion. The company also announced plans to commence a $1.25 billion accelerated share repurchase program during the fourth quarter. Additionally, the company anticipates increasing its dividend per common share by at least 10% annually through 2019.

Overview of Strategic and Capital Allocation Plan

Corning plans to deploy over $20 billion of capital through 2019 with the majority expected to come from operating cash flow. The strategic and capital allocation plan consists of two primary actions:

Return more than $10 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 2, and to reduce its global cash to approximately $2 billion.

Invest approximately $10 billion in Corning’s focused portfolio

. Over the next four years, Corning will concentrate its RD&E investment, capital spending, and strategic M&A on a cohesive set of three core technologies, four manufacturing and engineering platforms, and five 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.

Corning will discuss its strategic and capital allocation plans as part of its third-quarter conference call at 8:30 a.m. (EDT) today, the details for which follow below.

© 2015 Corning Incorporated. All Rights Reserved.

Page Two

Third-Quarter 2015 Performance

Corning reported core sales of $2.45 billion* and core earnings per share of $0.34*, compared with $2.58 billion* and $0.37 per share*, respectively, in the third quarter of 2014. Net sales (GAAP) for the third quarter were $2.27 billion and GAAP earnings per share were $0.15.

Third-Quarter 2015 Financial Comparisons

(In millions, except percentages and per-share amounts)

Core Performance*

Q3 2015

Q3 2014

% Change

Core Net Sales

$2,451

$2,583

Core Earnings

Core EPS

$2,272

$2,540

Net Income

$1,014

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 website. Core performance metrics (non-GAAP) are adjusted to exclude the impact of changes in Japanese yen foreign exchange rate, as well as other items that do not reflect ongoing operations of the company. See “Use of Non-GAAP Financial Measures” section of attached Form 8-K for details on core performance measures

“The weakening global economy, particularly in China, and the stronger U.S. dollar impacted all of our businesses,” R. Tony Tripeny, senior vice president and chief financial officer, said. “We are pleased with the improving pricing environment for LCD glass, and the strong industry acceptance of Corning® Gorilla® Glass 4, which is growing faster than we anticipated.”

Display Technologies:

Core sales in the third quarter were $936 million*, an 11% decrease from $1,053 million* in the comparable period a year ago. Sequential LCD glass volume declined slightly, and sequential LCD glass price declines remained moderate, as expected. Core earnings in the third quarter were $257 million*, a 15% decrease from $304 million* in the comparable period a year ago.

Optical Communications:

Sales in the third quarter were $747 million, a 7% increase from $698 million for the comparable period a year ago. Core earnings in the third quarter were $71 million*, a slight increase from $70 million* in the comparable period a year ago.

Environmental Technologies:

Sales in the third quarter were $257 million, a 9% decrease from $282 million in the comparable period a year ago. Core earnings in the third quarter were $38 million*, a 33% decrease from $57 million* in the comparable period a year ago.

Specialty Materials:

Sales in the third quarter were $288 million, a 12% decrease from $327 million for the comparable period a year ago. Core earnings in the third quarter were $44 million*, a 17% decrease from $53 million* in the comparable period a year ago.

Page Three

Life Sciences:

Sales in the third quarter were $211 million, a 1% decrease from $214 million for the comparable period a year ago. Core earnings in the third quarter were $21 million*, a 5% decrease from $22 million* in the comparable period a year ago.

Core equity earnings from

Dow Corning Corporation

were $53 million*, a $15 million, or 22%, decrease from the comparable period a year ago.

Looking Forward

“We expect global economic headwinds to persist in the fourth quarter,” Tripeny said, “but we are encouraged by longer-term industry trends. We are pleased that the LCD glass pricing environment has been improving for more than a year, and we expect this to continue in the fourth quarter. Consumers want larger flat panel displays and TV screens, which should drive overall glass volume growth. Bandwidth demand continues to grow, enabling our Optical Communications segment to deliver an expected 10% sales increase this year.”

Corning provided the following expectations for its business segments in the fourth quarter of 2015:

Corning expects its fourth-quarter LCD glass volume to be down slightly sequentially. Corning’s LCD glass price declines are expected to decline less in the fourth quarter than in the third quarter.

Optical Communications:

Corning expects fourth-quarter sales to increase by a low-to-mid-single-digit percentage rate over its sales in the comparable period a year ago.

Fourth-quarter sales are expected to decline at a low-teens percentage rate on a year-over-year basis.

Environmental Technologies and Life Sciences:

Sales of both business segments are expected to decline at a

mid-single-digit percentage rate in the fourth quarter versus a year ago.

are expected to be approximately $80 million*.

Upcoming Investor Events

Corning plans to meet with investors in November and is scheduled to present at the UBS Global Technology and Services Conference on Nov. 17 in San Francisco and Credit Suisse Technology Conference in Scottsdale, Arizona, on Dec. 1.

Third-Quarter Conference Call Information

The company will host a third-quarter conference call at 8:30 a.m. (EDT) Tuesday, Oct. 27. To participate, please call toll free (800) 230-1085; or for international access call (612) 332-0107 approximately 10-15 minutes prior to the start of the call. The host is “NICHOLSON”. To listen to a live audio webcast of the call, go to Corning’s website at

www.corning.com/investor_relations

click on “Events” and follow the instructions. A replay will be available beginning at 11 a.m. (EDT) and will run through 5 p.m. (EST), Tuesday, Nov. 10. To listen, dial (800) 475-6701, or for international access dial (320) 365-3844. The access code is 370570. The webcast will be archived for one year following the call.

Page Four

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...


More