Outperformance was driven primarily by the
strong adoption of new optical connectivity products for generative
AI
Management expects core sales to grow to
~$3.7 billion in the third quarter, with core EPS growing faster
than sales and in the range of $0.50 to $0.54
Corning and Lumen Technologies reach an
agreement to reserve 10% of Corning’s global fiber capacity for
each of the next two years to interconnect AI-enabled data
centers
Results and outlook reinforce management’s
confidence in its ‘Springboard’ plan to add more than $3 billion in
annualized sales with strong incremental profit and cash flow in
the next three years, as cyclical factors and secular trends
converge
Corning Incorporated (NYSE: GLW) today announced its
second-quarter 2024 results and provided its outlook for
third-quarter 2024.
Wendell P. Weeks, chairman and chief executive officer, said,
“Our strong second-quarter results exceeded the guidance we
provided in April and marked a return to year-over-year core sales
and EPS growth. The outperformance was driven primarily by the
strong adoption of our new optical connectivity products for
generative AI, which drove record sales in the Enterprise portion
of our Optical Communications business. The opportunity is only
growing; in fact, in the third quarter, we reached an agreement
with Lumen Technologies that uses our new gen-AI fiber and cable
system to facilitate Lumen’s build of a new network to interconnect
AI-enabled data centers.”
Weeks continued, “We’re off to a great start with our
‘Springboard’ plan. We’ve positioned the company to capture
significant growth – with powerful incremental profit and cash flow
– as cyclical factors and secular trends converge to drive demand
for our capabilities. Because of our growing confidence in
Springboard, we began buying back shares in the second quarter.
We’re energized by the tremendous opportunity for value creation
we’ve built for our shareholders.”
Second-Quarter 2024 Financial Highlights:
- GAAP sales were $3.25 billion. Core sales were $3.60
billion.
- GAAP EPS was $0.12, and core EPS was $0.47. The difference
between GAAP and core EPS primarily reflected constant currency
adjustments, translated earnings contract gains, and translation
gains on Japanese-yen-denominated debt, as well as restructuring
and non-cash asset write-off charges.
- GAAP gross margin was 29.2%. Core gross margin improved
sequentially and year over year by 110 and 170 basis points,
respectively, to 37.9%.
- GAAP operating cash flow was $521 million, and adjusted free
cash flow was $353 million.
Third-Quarter 2024 Outlook:
- For the third quarter, management expects core sales to grow to
approximately $3.7 billion with core EPS in the range of $0.50 to
$0.54. The sequential sales increase is driven primarily by the
continued adoption of new optical connectivity products for
generative AI in Optical Communications more than offsetting the
expected slowdown in the North American Class 8 truck market.
Ed Schlesinger, executive vice president and chief financial
officer, said, “Our second-quarter results reflect great
progress against our ‘Springboard’ plan. Core gross margin and
operating margin improved 110 basis points and 190 basis points,
respectively, versus the prior quarter. We also grew adjusted free
cash flow to $353 million. These results are a strong proof point
of the incremental profit and cash flow we expect to deliver as we
capture the more than $3 billion annualized sales growth
opportunity we’ve outlined.”
Schlesinger continued, “For the third quarter, we expect
core sales to grow to approximately $3.7 billion, with continued
adoption of our new optical connectivity products for generative
AI. We expect core EPS to grow much faster than sales and to be in
the range of $0.50 to $0.54. We’re well on our way to delivering
our ‘Springboard’ plan.”
Second-Quarter 2024 Results
and Comparisons
(In millions, except per-share
amounts)
Results (GAAP)
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$3,251
$2,975
$3,243
9%
—
Net Income (1)
$104
$209
$281
(50%)
(63%)
Diluted EPS
$0.12
$0.24
$0.33
(50%)
(64%)
(1) Represents GAAP net income
attributable to Corning Incorporated.
Core Results
(Non-GAAP)
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Core Sales (1)
$3,604
$3,258
$3,482
11%
4%
Core Net Income (1)
$407
$330
$388
23%
5%
Core EPS (1)
$0.47
$0.38
$0.45
24%
4%
(1) Core performance measures 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.
Second-Quarter 2024 Segment Results
(In millions)
The second-quarter results below
are prepared on a basis consistent with Corning’s segment reporting
as presented in the company’s consolidated financial
statements.
Optical Communications
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$1,113
$930
$1,066
20%
4%
Net Income
$143
$100
$140
43%
2%
In Optical Communications, second-quarter sales were $1.1
billion, up 20% sequentially, marking a return to growth. Year over
year, sales increased 4%, reflecting record sales in the Enterprise
portion of the business, which was up 42%, driven by AI-related
connectivity solutions. Second-quarter net income was $143 million,
up 43% sequentially, driven by strong incremental profit on the
higher volume.
In the third quarter, Corning and Lumen Technologies reached an
agreement that reserves 10% of Corning’s global fiber capacity for
each of the next two years to facilitate Lumen’s build of a new
network to interconnect AI-enabled data centers. This will be the
first outside-plant deployment of Corning’s new generative-AI fiber
and cable system, which enables Lumen to fit two to four times the
amount of fiber into their existing conduit.
Display Technologies
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$1,014
$872
$928
16%
9%
Net Income
$258
$201
$208
28%
24%
In Display Technologies, second-quarter sales were $1 billion,
up 9% year over year. Net income was $258 million, up 24% year over
year, reflecting higher volume and price.
Specialty Materials
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$501
$454
$423
10%
18%
Net Income
$63
$44
$33
43%
91%
In Specialty Materials, second-quarter sales were $501 million,
up 18% year over year, driven by continued strong demand for
premium glass for mobile devices and semiconductor-related
products. Second-quarter net income was $63 million, up 91% year
over year.
Environmental
Technologies
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$431
$455
$457
(5%)
(6%)
Net Income
$97
$105
$107
(8%)
(9%)
In Environmental Technologies, second-quarter sales were $431
million, down 6% year over year, reflecting the impact of the Class
8 truck downcycle in North America, as anticipated. Net income was
$97 million, down 9% year over year, on the decreased volume.
Life Sciences
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$249
$236
$231
6%
8%
Net Income
$17
$13
$11
31%
55%
In Life Sciences, second-quarter sales were $249 million, up 8%
year over year. Net income was $17 million, up 55% year over
year.
Hemlock and Emerging Growth
Businesses
Q2 2024
Q1 2024
Q2 2023
Q/Q
Y/Y
Net Sales
$296
$311
$377
(5%)
(21%)
Net (Loss) Income
($23)
($10)
$26
(130%)
*
* Not meaningful
In Hemlock and Emerging Growth Businesses, second-quarter sales
were $296 million, down 21% year over year, primarily reflecting
lower pricing for solar-grade polysilicon.
Upcoming Investor Events In the third quarter, Corning
will attend the J.P. Morgan Hardware & Semis Management Access
Forum on Aug. 14 and Citi’s 2024 Global TMT Conference on Sept. 5.
Corning will host an investor visit to company facilities in
September. Additionally, Corning will be scheduling management
visits to investor offices in select cities. Visit the company’s
Investor Relations website for up-to-date conference
information.
Second-Quarter Conference Call Information The company
will host its second-quarter conference call on Tuesday, July 30,
at 8:30 a.m. EDT. To participate, individuals may preregister here
prior to the start of the call. Once the required fields are
completed, click “Register.” A telephone number and PIN will be
auto generated and will pop up on screen. Participants will have
the choice to “Dial In” or have the system “Call Me.” A
confirmation email will also be sent with specific dial-in
information. To listen to a live audio webcast of the call, go to
the company’s Investor Relations events page and follow the
instructions.
Presentation of Information in this News Release This
news release includes non-GAAP financial measures. 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. Definitions of these non-GAAP
financial measures and reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures
can be found on the company’s website by going to the Investor
Relations page and clicking “Quarterly Results” under the
“Financials and Filings” tab. These reconciliations also accompany
this news release.
With respect to the outlook for future periods, it is not
possible to provide reconciliations for these non-GAAP measures
because management does not forecast the movement of foreign
currencies against the U.S. dollar, or other items that do not
reflect ongoing operations, nor does it forecast items that have
not yet occurred or are out of management’s control. As a result,
management is unable to provide outlook information on a GAAP
basis.
Caution Concerning Forward-Looking Statements The
statements contained in this release and related comments by
management that are not historical facts or information and contain
words such as “will,” “believe,” “anticipate,” “expect,” “intend,”
“plan,” “seek,” “see,” “would,” “target,” “estimate,” “forecast” or
similar expressions are forward-looking statements. These
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and include estimates and assumptions related to economic,
competitive and legislative developments. Such statements relate to
future events that by their nature address matters that are, to
different degrees, uncertain. These forward-looking statements
relate to, among other things, the company’s future operating
performance, the company’s share of new and existing markets, the
company’s revenue and earnings growth rates, the company’s ability
to innovate and commercialize new products, the company’s expected
capital expenditure and the company’s implementation of
cost-reduction initiatives and measures to improve pricing,
including the optimization of the company’s manufacturing
capacity.
Although the company believes that these forward-looking
statements are based upon reasonable assumptions regarding, among
other things, current estimates and forecasts, general economic
conditions, its knowledge of its business and key performance
indicators that impact the company, there can be no assurance that
these forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. The company undertakes no
obligation to update forward-looking statements if circumstances or
management’s estimates or opinions should change except as required
by applicable securities laws.
Some of the risks, uncertainties and other factors that could
cause actual results to differ materially from those expressed in
or implied by the forward-looking statements include, but are not
limited to: global economic trends, competition and geopolitical
risks, or an escalation of sanctions, tariffs or other trade
tensions between the U.S. and China or other countries, and related
impacts on our businesses’ global supply chains and strategies;
changes in macroeconomic and market conditions and market
volatility, including developments and volatility arising from
health crisis events, inflation, interest rates, the value of
securities and other financial assets, precious metals, oil,
natural gas, raw materials and other commodity prices and exchange
rates (particularly between the U.S. dollar and the Japanese yen,
New Taiwan dollar, euro, Chinese yuan and South Korean won), the
availability of government incentives, decreases or sudden
increases of consumer demand, and the impact of such changes and
volatility on our financial position and businesses; the duration
and severity of health crisis events, such as an epidemic or
pandemic, and its impact across our businesses on demand,
personnel, operations, our global supply chains and stock price;
possible disruption in commercial activities or our supply chain
due to terrorist activity, cyber-attack, armed conflict, political
or financial instability, natural disasters, international trade
disputes or major health concerns; loss of intellectual property
due to theft, cyber-attack, or disruption to our information
technology infrastructure; ability to enforce patents and protect
intellectual property and trade secrets; disruption to Corning’s,
our suppliers’ and manufacturers’ supply chain, equipment,
facilities, IT systems or operations; product demand and industry
capacity; competitive products and pricing; availability and costs
of critical components, materials, equipment, natural resources and
utilities; 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; the amount and timing of
any future dividends; the effects of acquisitions, dispositions and
other similar transactions; the effect of regulatory and legal
developments; ability to pace capital spending to anticipated
levels of customer demand; our ability to increase margins through
implementation of operational changes, pricing actions and cost
reduction measures; rate of technology change; adverse litigation;
product and component performance issues; retention of key
personnel; customer ability to maintain profitable operations and
obtain financing to fund ongoing operations and manufacturing
expansions and pay receivables when due; loss of significant
customers; changes in tax laws, regulations and international tax
standards; the impacts of audits by taxing authorities; the
potential impact of legislation, government regulations, and other
government action and investigations; and other risks detailed in
Corning’s SEC filings.
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.
Web Disclosure In accordance with guidance provided by
the SEC regarding the use of company websites and social media
channels to disclose material information, Corning Incorporated
(“Corning”) wishes to notify investors, media, and other interested
parties that it uses its website
(https://www.corning.com/worldwide/en/about-us/news-events.html) to
publish important information about the company, including
information that may be deemed material to investors, or
supplemental to information contained in this or other press
releases. The list of websites and social media channels that the
company uses may be updated on Corning’s media and website from
time to time. Corning encourages investors, media, and other
interested parties to review the information Corning may publish
through its website and social media channels as described above,
in addition to the company’s SEC filings, press releases,
conference calls, and webcasts.
About Corning Incorporated Corning (www.corning.com) is
one of the world’s leading innovators in materials science, with a
170-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
its customers capture new opportunities in dynamic industries.
Today, Corning’s markets include optical communications, mobile
consumer electronics, display, automotive, solar, semiconductors,
and life sciences.
Consolidated Statements of Income
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions, except
per share amounts)
Three months ended
Six months ended
June 30,
June 30,
2024
2023
2024
2023
Net sales
$
3,251
$
3,243
$
6,226
$
6,421
Cost of sales
2,302
2,230
4,284
4,405
Gross margin
949
1,013
1,942
2,016
Operating expenses:
Selling, general and administrative
expenses
471
440
922
861
Research, development and engineering
expenses
262
263
520
517
Amortization of purchased intangibles
30
31
60
62
Operating income
186
279
440
576
Interest income
10
8
22
15
Interest expense
(84
)
(81
)
(167
)
(157
)
Translated earnings contract gain, net
27
116
66
108
Other income, net
33
87
107
95
Income before income taxes
172
409
468
637
Provision for income taxes
(50
)
(106
)
(121
)
(143
)
Net income
122
303
347
494
Net income attributable to non-controlling
interest
(18
)
(22
)
(34
)
(37
)
Net income attributable to Corning
Incorporated
$
104
$
281
$
313
$
457
Earnings per common share available to
common shareholders:
Basic
$
0.12
$
0.33
$
0.37
$
0.54
Diluted
$
0.12
$
0.33
$
0.36
$
0.53
Consolidated Balance Sheets
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions, except
share and per share amounts)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
1,419
$
1,779
Trade accounts receivable, net of doubtful
accounts
1,721
1,572
Inventories
2,682
2,666
Other current assets
1,299
1,195
Total current assets
7,121
7,212
Property, plant and equipment, net of
accumulated depreciation
13,742
14,630
Goodwill
2,365
2,380
Other intangible assets, net
836
905
Deferred income taxes
1,134
1,153
Other assets
1,981
2,220
Total Assets
$
27,179
$
28,500
Liabilities and Equity
Current liabilities:
Current portion of long-term debt and
short-term borrowings
$
376
$
320
Accounts payable
1,466
1,466
Other accrued liabilities
2,684
2,533
Total current liabilities
4,526
4,319
Long-term debt
6,908
7,206
Postretirement benefits other than
pensions
360
398
Other liabilities
4,458
4,709
Total liabilities
16,252
16,632
Commitments and contingencies
Shareholders’ equity:
Common stock – Par value $0.50 per share;
Shares authorized 3.8 billion; Shares issued: 1.8 billion and 1.8
billion
919
916
Additional paid-in capital – common
stock
17,081
16,929
Retained earnings
15,976
16,391
Treasury stock, at cost; Shares held: 985
million and 980 million
(20,799
)
(20,637
)
Accumulated other comprehensive loss
(2,592
)
(2,048
)
Total Corning Incorporated shareholders’
equity
10,585
11,551
Non-controlling interest
342
317
Total equity
10,927
11,868
Total Liabilities and Equity
$
27,179
$
28,500
Consolidated Statements of
Cash Flows
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions)
Three months ended
Six months ended
June 30,
June 30,
2024
2023
2024
2023
Cash Flows from Operating
Activities:
Net income
$
122
$
303
$
347
$
494
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
307
312
614
622
Amortization of purchased intangibles
30
31
60
62
Loss on disposal of assets, net
126
43
126
23
Share-based compensation expense
66
59
126
111
Translation gain on Japanese
yen-denominated debt
(54
)
(109
)
(135
)
(127
)
Deferred tax (benefit) provision
(9
)
28
1
(10
)
Translated earnings contract gain, net
(27
)
(116
)
(66
)
(108
)
Tax deposit refund
99
99
Changes in assets and liabilities:
Trade accounts receivable
(123
)
(36
)
(284
)
(64
)
Inventories
(3
)
41
(89
)
58
Other current assets
(18
)
13
(16
)
(49
)
Accounts payable and other current
liabilities
62
(32
)
(52
)
(416
)
Customer deposits and government
incentives
7
27
(18
)
(6
)
Deferred income
(36
)
(18
)
(70
)
(24
)
Other, net
71
(26
)
73
(95
)
Net cash provided by operating
activities
521
619
617
570
Cash Flows from Investing
Activities:
Capital expenditures
(242
)
(388
)
(494
)
(770
)
Proceeds from sale of equipment to related
party
67
Realized gains on translated earnings
contracts and other
74
96
168
177
Other, net
14
5
(12
)
11
Net cash used in investing
activities
(154
)
(287
)
(338
)
(515
)
Cash Flows from Financing
Activities:
Repayments of debt
(5
)
(4
)
(42
)
(73
)
Proceeds from issuance of debt
6
20
Proceeds from issuance of euro bonds
918
918
Proceeds from other financing
arrangements
54
Proceeds from cross currency swap
68
68
Payment for redemption of preferred
stock
(507
)
(507
)
Payments of employee withholding tax on
stock awards
(24
)
(83
)
(58
)
(99
)
Proceeds from exercise of stock
options
21
19
34
35
Purchases of common stock for treasury
(105
)
(105
)
Dividends paid
(252
)
(256
)
(495
)
(495
)
Other, net
(7
)
(9
)
(14
)
(17
)
Net cash used in financing
activities
(304
)
84
(612
)
(164
)
Effect of exchange rates on cash
(9
)
(24
)
(27
)
(24
)
Net increase (decrease) in cash and cash
equivalents
54
392
(360
)
(133
)
Cash and cash equivalents at beginning of
period
1,365
1,146
1,779
1,671
Cash and cash equivalents at end of
period
$
1,419
$
1,538
$
1,419
$
1,538
Corning Incorporated and
Subsidiary Companies
GAAP Earnings per Common
Share
(Unaudited; in millions, except
per share amounts)
The following table sets forth
the computation of basic and diluted earnings per common share:
Three months ended
Six months ended
June 30,
June 30,
2024
2023
2024
2023
Net income attributable to Corning
Incorporated
$
104
$
281
$
313
$
457
Weighted-average common shares outstanding
- basic
853
848
853
846
Effect of dilutive securities:
Stock options and other awards
11
11
12
13
Weighted-average common shares
outstanding - diluted
864
859
865
859
Basic earnings per common share
$
0.12
$
0.33
$
0.37
$
0.54
Diluted earnings per common
share
$
0.12
$
0.33
$
0.36
$
0.53
Core Earnings per
Share
(Unaudited; in millions, except
per share amounts)
The following table sets forth
the computation of core earnings per share:
Three months ended
Six months ended
June 30,
June 30,
2024
2023
2024
2023
Core net income
$
407
$
388
$
737
$
738
Weighted-average common shares outstanding
- basic
853
848
853
846
Effect of dilutive securities:
Stock options and other awards
11
11
12
13
Weighted-average common shares
outstanding - diluted
864
859
865
859
Core earnings per share
$
0.47
$
0.45
$
0.85
$
0.86
CORE PERFORMANCE MEASURES
In managing the Company and assessing our financial performance,
we adjust certain measures included in our consolidated financial
statements to exclude specific items to arrive at our core
performance measures. These items include the impact of translating
the Japanese yen-denominated debt, the impact of the translated
earnings contracts, acquisition-related costs, certain discrete tax
items and other tax-related adjustments, restructuring, impairment
and other charges and credits, certain litigation, regulatory and
other legal matters, pension mark-to-market adjustments and other
items which do not reflect the ongoing operating results of the
Company.
In addition, because a significant portion of our revenues and
expenses are denominated in currencies other than the U.S. dollar,
management believes it is important to understand the impact on
sales and net income of translating these currencies into U.S.
dollars. Therefore, management utilizes constant-currency reporting
for the Display Technologies, Specialty Materials, Environmental
Technologies and Life Sciences segments to exclude the impact from
the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar
and euro, as applicable to the segment. In addition, effective
January 1, 2024, the Company began utilizing constant-currency
reporting for the Optical Communications segment to exclude the
impact from the Mexican peso on segment results. Prior periods were
not recast as the impact was not material. The most significant
constant-currency adjustment relates to the Japanese yen exposure
within the Display Technologies segment.
The constant-currency rates established for our core performance
measures are internally derived long-term management estimates,
which are closely aligned with our hedging instrument rates. These
hedging instruments may include, but are not limited to, foreign
exchange forward or option contracts and foreign-denominated debt.
For details of the rates used, please see the footnotes to the
“Reconciliation of Non-GAAP Measures” section. We believe that the
use of constant-currency reporting allows management to understand
our results without the volatility of currency fluctuations,
analyze underlying trends in the businesses and establish
operational goals and forecasts.
Core performance measures are not prepared in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). We provide investors with these non-GAAP measures
to evaluate our results as we believe they are indicative of our
core operating performance and provide greater transparency to how
management evaluates our results and trends and makes financial and
operational decisions. These measures are not, and should not be
viewed as a substitute for, GAAP reporting measures. With respect
to the outlook for future periods, it is not possible to provide
reconciliations for these non-GAAP measures because management does
not forecast the movement of foreign currencies against the U.S.
dollar, or other items that do not reflect ongoing operations, nor
does it forecast items that have not yet occurred or are out of
management’s control. As a result, management is unable to provide
outlook information on a GAAP basis.
For a reconciliation of non-GAAP performance measures to their
most directly comparable GAAP financial measure, please see
“Reconciliation of Non-GAAP Measures.”
Reconciliation of Non-GAAP Measures
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions, except
per share amounts)
Three months ended June 30,
2024
Net income
attributable
Net
Income before
to Corning
Effective tax
Per
sales
income taxes
Incorporated
rate (a)(b)
share
As reported – GAAP
$
3,251
$
172
$
104
29.1
%
$
0.12
Constant-currency adjustment (1)
353
267
193
0.22
Translation gain on Japanese
yen-denominated debt, net (2)
(54
)
(41
)
(0.05
)
Translated earnings contract gain (3)
(27
)
(21
)
(0.02
)
Acquisition-related costs (4)
32
22
0.03
Discrete tax items and other tax-related
adjustments (5)
4
0.00
Restructuring, impairment and other
charges and credits (6)
138
130
0.15
Pension mark-to-market adjustment (7)
3
3
0.00
Loss on investments (8)
7
6
0.01
Loss on sale of assets (9)
10
7
0.01
Core performance measures
$
3,604
$
548
$
407
22.0
%
$
0.47
(a)
Based upon statutory tax rates in
the specific jurisdiction for each event.
(b)
The calculation of the effective
tax rate (“ETR”) for GAAP and Core excludes net income attributable
to non-controlling interest (“NCI”) of approximately $18 million
and $21 million, respectively.
Three months ended June 30,
2023
Net income
attributable
Net
Income before
to Corning
Effective tax
Per
sales
income taxes
Incorporated
rate (a)(b)
share
As reported - GAAP
$
3,243
$
409
$
281
25.9
%
$
0.33
Constant-currency adjustment (1)
239
174
125
0.15
Translation gain on Japanese
yen-denominated debt, net (2)
(109
)
(88
)
(0.10
)
Translated earnings contract gain (3)
(116
)
(93
)
(0.11
)
Acquisition-related costs (4)
32
25
0.03
Discrete tax items and other tax-related
adjustments (5)
31
0.04
Restructuring, impairment and other
charges and credits (6)
137
109
0.13
Pension mark-to-market adjustment (7)
(21
)
(17
)
(0.02
)
Loss on investments (8)
5
5
0.01
Litigation, regulatory and other legal
matters (10)
12
10
0.01
Core performance measures
$
3,482
$
523
$
388
21.5
%
$
0.45
(a)
Based upon statutory tax rates in
the specific jurisdiction for each event.
(b)
The calculation of the ETR for
GAAP and Core excludes net income attributable to NCI of
approximately $22 million and $23 million, respectively.
See “Items Adjusted from GAAP Measures” for the descriptions of
the footnoted reconciling items.
Reconciliation of Non-GAAP Measures
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions, except
per share amounts)
Six months ended June 30,
2024
Net income
attributable
Net
Income before
to Corning
Effective tax
Per
sales
income taxes
Incorporated
rate (a)(b)
share
As reported – GAAP
$
6,226
$
468
$
313
25.9
%
$
0.36
Constant-currency adjustment (1)
636
493
365
0.42
Translation gain on Japanese
yen-denominated debt, net (2)
(135
)
(103
)
(0.12
)
Translated earnings contract gain (3)
(66
)
(51
)
(0.06
)
Acquisition-related costs (4)
64
46
0.05
Discrete tax items and other tax-related
adjustments (5)
19
0.02
Restructuring, impairment and other
charges and credits (6)
129
123
0.14
Pension mark-to-market adjustment (7)
14
11
0.01
Loss on investments (8)
12
11
0.01
Loss on sale of assets (9)
10
7
0.01
Litigation, regulatory and other legal
matters (10)
(5
)
(4
)
(0.00
)
Core performance measures
$
6,862
$
984
$
737
21.2
%
$
0.85
(a)
Based upon statutory tax rates in
the specific jurisdiction for each event.
(b)
The calculation of the effective
tax rate (“ETR”) for GAAP and Core excludes net income attributable
to non-controlling interest (“NCI”) of approximately $34 million
and $38 million, respectively.
Six months ended June 30,
2023
Net income
attributable
Net
Income before
to Corning
Effective tax
Per
sales
income taxes
Incorporated
rate (a)(b)
share
As reported - GAAP
$
6,421
$
637
$
457
22.4
%
$
0.53
Constant-currency adjustment (1)
428
323
239
0.28
Translation gain on Japanese
yen-denominated debt, net (2)
(127
)
(102
)
(0.12
)
Translated earnings contract gain (3)
(108
)
(87
)
(0.10
)
Acquisition-related costs (4)
66
45
0.05
Discrete tax items and other tax-related
adjustments (5)
29
0.03
Restructuring, impairment and other
charges and credits (6)
203
162
0.19
Pension mark-to-market adjustment (7)
(11
)
(9
)
(0.01
)
Loss on investments (8)
9
9
0.01
Gain on sale of assets (9)
(20
)
(15
)
(0.02
)
Litigation, regulatory and other legal
matters (10)
12
10
0.01
Core performance measures
$
6,849
$
984
$
738
20.5
%
$
0.86
(a)
Based upon statutory tax rates in
the specific jurisdiction for each event.
(b)
The calculation of the ETR for
GAAP and Core excludes net income attributable to NCI of
approximately $37 million and $44 million, respectively.
See “Items Adjusted from GAAP Measures” for the descriptions of
the footnoted reconciling items.
Reconciliation of Non-GAAP Measures
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions)
Three months ended June 30,
2024
Selling,
Research,
general
development
Gross
and
and
Operating
Gross
margin
administrative
engineering
Operating
margin
margin
%
expenses
expenses
income
%
As reported - GAAP
$
949
29.2
%
$
471
$
262
$
186
5.7
%
Constant-currency adjustment (1)
266
3
1
262
Acquisition-related costs (4)
(1
)
31
Restructuring, impairment and other
charges and credits (6)
141
6
135
Pension mark-to-market adjustment (7)
(3
)
3
Loss on sale of assets (9)
10
10
Core performance measures
$
1,366
37.9
%
$
477
$
262
$
627
17.4
%
Three months ended June 30,
2023
Selling,
Research,
general
development
Gross
and
and
Operating
Gross
margin
administrative
engineering
Operating
margin
margin
%
expenses
expenses
income
%
As reported - GAAP
$
1,013
31.2
%
$
440
$
263
$
279
8.6
%
Constant-currency adjustment (1)
176
3
173
Acquisition-related costs (4)
1
30
Restructuring, impairment and other
charges and credits (6)
79
(17
)
(12
)
108
Pension mark-to-market adjustment (7)
(6
)
(1
)
7
Litigation, regulatory and other legal
matters (10)
(6
)
(18
)
12
Core performance measures
$
1,262
36.2
%
$
403
$
250
$
609
17.5
%
See “Items Adjusted from GAAP Measures” for the descriptions of
the footnoted reconciling items.
Reconciliation of Non-GAAP Measures
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions)
Six months ended June 30,
2024
Selling,
Research,
general
development
Gross
and
and
Operating
Gross
margin
administrative
engineering
Operating
margin
margin
%
expenses
expenses
income
%
As reported - GAAP
$
1,942
31.2
%
$
922
$
520
$
440
7.1
%
Constant-currency adjustment (1)
493
7
1
485
Acquisition-related costs (4)
(1
)
61
Restructuring, impairment and other
charges and credits (6)
121
(5
)
126
Pension mark-to-market adjustment (7)
(11
)
(3
)
14
Loss on sale of assets (9)
10
10
Litigation, regulatory and other legal
matters (10)
5
(5
)
Core performance measures
$
2,566
37.4
%
$
918
$
517
$
1,131
16.5
%
Six months ended June 30,
2023
Selling,
Research,
general
development
Gross
and
and
Operating
Gross
margin
administrative
engineering
Operating
margin
margin
%
expenses
expenses
income
%
As reported - GAAP
$
2,016
31.4
%
$
861
$
517
$
576
9.0
%
Constant-currency adjustment (1)
325
5
320
Acquisition-related costs (4)
2
60
Restructuring, impairment and other
charges and credits (6)
133
(22
)
(12
)
167
Pension mark-to-market adjustment (7)
(14
)
(3
)
17
Gain on sale of assets (9)
(20
)
(20
)
Litigation, regulatory and other legal
matters (10)
(6
)
(18
)
12
Core performance measures
$
2,448
35.7
%
$
814
$
502
$
1,132
16.5
%
See “Items Adjusted from GAAP Measures” for the descriptions of
the footnoted reconciling items.
Reconciliation of Non-GAAP Measures
Corning Incorporated and
Subsidiary Companies
(Unaudited; in millions)
Three months ended
Six months ended
June 30,
June 30,
2024
2023
2024
2023
Cash flows from operating activities
$
521
$
619
$
617
$
570
Realized gains on translated earnings
contracts and other
74
96
168
177
Translation losses on cash balances
(17
)
(50
)
Adjusted cash flows from operating
activities
$
595
$
698
$
785
$
697
Less: Capital expenditures
$
242
$
388
$
494
$
770
Adjusted free cash flow
$
353
$
310
$
291
$
(73
)
Items Adjusted from GAAP
Measures
Items adjusted from GAAP measures
to arrive at core performance measures are as follows:
(1)
Constant-currency adjustment: As a significant
portion of revenues and expenses are denominated in currencies
other than the U.S. dollar, management believes it is important to
understand the impact on sales and net income of translating these
currencies into U.S. dollars. The Company utilizes
constant-currency reporting for Display Technologies, Specialty
Materials, Environmental Technologies and Life Sciences segments
for the Japanese yen, Korean won, Chinese yuan, New Taiwan dollar
and euro, as applicable to the segment. In addition, effective
January 1, 2024, the Company began utilizing constant-currency
reporting for the Optical Communications segment to exclude the
impact from the Mexican peso on segment results. Prior periods were
not recast as the impact was not material.
The constant-currency rates
established for our core performance measures are internally
derived long-term management estimates, which are closely aligned
with our hedging instrument rates. These hedging instruments may
include, but are not limited to, foreign exchange forward or option
contracts and foreign-denominated debt. For the six months ended
June 30, 2024, the adjustment primarily relates to our Japanese yen
exposure due to the difference in the average spot rate compared to
our core rate.
We believe that the use of
constant-currency reporting allows management to understand our
results without the volatility of currency fluctuation, analyze
underlying trends in the businesses and establish operational goals
and forecasts.
Constant-currency rates used are
as follows and are applied to all periods presented and to all
foreign exchange exposures during the period, even though we may be
less than 100% hedged:
Currency
Japanese yen
Korean won
Chinese yuan
New Taiwan dollar
Euro
Mexican peso
Rate
¥107
₩1,175
¥6.7
NT$31
€.81
MX$20
(2)
Translation
of Japanese yen-denominated debt, net: Amount reflects the
gain or loss on the translation of our yen-denominated debt to U.S.
dollars, net of a $7 million loss for the three and six months
ended June 30, 2024, related to the change in the fair value of our
cross currency swap contracts.
(3)
Translated
earnings contract: Amount reflects the impact of the
realized and unrealized gains and losses from the Japanese yen,
South Korean won, Chinese yuan, euro and New Taiwan
dollar-denominated foreign currency hedges related to translated
earnings, as well as the unrealized gains and losses of our British
pound and Mexican peso-denominated foreign currency hedges related
to translated earnings.
(4)
Acquisition-related costs: Amount reflects
intangible amortization, inventory valuation adjustments and
external acquisition-related deal costs, as well as other
transaction related costs.
(5)
Discrete
tax items and other tax-related adjustments: Amount reflects
certain discrete period tax items such as changes in tax law, the
impact of tax audits, changes in tax reserves and changes in
deferred tax asset valuation allowances, as well as other
tax-related adjustments.
(6)
Restructuring, impairment and other charges and
credits: Amount reflects certain restructuring, impairment
losses and other charges and credits, as well as other expenses,
including severance, accelerated depreciation, asset write-offs and
facility repairs resulting from power outages, which are not
related to ongoing operations.
(7)
Pension
mark-to-market adjustment: Amount primarily reflects defined
benefit pension mark-to-market gains and losses, which arise from
changes in actuarial assumptions and the difference between actual
and expected returns on plan assets and discount rates.
(8)
Loss on
investments: Amount reflects the loss recognized on
investments due to mark-to-market adjustments for the change in
fair value or the disposition of an investment.
(9)
Loss (gain)
on sale of assets: Amount represents the loss or gain
recognized for the sale of assets.
(10)
Litigation,
regulatory and other legal matters: Amount reflects
developments in commercial litigation, intellectual property
disputes, adjustments to our estimated liability for
environmental-related items and other legal matters.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240729681825/en/
Media Relations: Michael A. West Jr. (607) 684-1167
westm4@corning.com
Investor Relations: Ann H.S. Nicholson (607) 974-6716
nicholsoas@corning.com
Corning (NYSE:GLW)
過去 株価チャート
から 7 2024 まで 7 2024
Corning (NYSE:GLW)
過去 株価チャート
から 7 2023 まで 7 2024
