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Corning Reports Strong Second-Quarter 2024 Financial Results, Exceeding April Guidance and Marking Return to Year-over-Year Sales Growth

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Corning Incorporated (NYSE: GLW) reported strong Q2 2024 results, exceeding April guidance and marking a return to year-over-year sales growth. Core sales reached $3.60 billion, up 4% year-over-year, while core EPS was $0.47, up 4%. The outperformance was primarily driven by strong adoption of new optical connectivity products for generative AI. For Q3 2024, management expects core sales to grow to ~$3.7 billion, with core EPS in the range of $0.50 to $0.54.

Highlights include:

  • Record sales in Enterprise portion of Optical Communications, up 42% year-over-year
  • Agreement with Lumen Technologies to reserve 10% of Corning's global fiber capacity for AI-enabled data centers
  • Core gross margin improved to 37.9%, up 170 basis points year-over-year
  • Adjusted free cash flow of $353 million

The results reinforce management's confidence in its 'Springboard' plan to add over $3 billion in annualized sales with strong incremental profit and cash flow in the next three years.

Corning Incorporated (NYSE: GLW) ha riportato risultati solidi per il secondo trimestre del 2024, superando le previsioni di aprile e segnando un ritorno alla crescita delle vendite anno su anno. Le vendite core hanno raggiunto i 3,60 miliardi di dollari, con un incremento del 4% rispetto all'anno precedente, mentre l'utile per azione core è stato di 0,47 dollari, anch'esso in aumento del 4%. Questo andamento positivo è stato principalmente guidato dalla forte adozione di nuovi prodotti di connettività ottica per l'IA generativa. Per il terzo trimestre del 2024, la direzione prevede una crescita delle vendite core a circa 3,7 miliardi di dollari, con un utile per azione core nell'intervallo di 0,50-0,54 dollari.

I punti salienti includono:

  • Vendite record nella porzione Enterprise delle Comunicazioni Ottiche, in aumento del 42% rispetto all'anno precedente
  • Accordo con Lumen Technologies per riservare il 10% della capacità globale in fibra di Corning per centri dati abilitati all'IA
  • Il margine lordo core è migliorato al 37,9%, con un aumento di 170 punti base rispetto all'anno precedente
  • Flusso di cassa libero rettificato di 353 milioni di dollari

I risultati rafforzano la fiducia della direzione nel piano 'Springboard' per aggiungere oltre 3 miliardi di dollari in vendite annualizzate con forti profitti incrementali e flusso di cassa nei prossimi tre anni.

Corning Incorporated (NYSE: GLW) reportó resultados sólidos para el segundo trimestre de 2024, superando las proyecciones de abril y marcando un regreso al crecimiento de ventas interanual. Las ventas centrales alcanzaron los 3,60 mil millones de dólares, un aumento del 4% en comparación con el año anterior, mientras que el BPA central fue de 0,47 dólares, también un incremento del 4%. Este rendimiento superior fue impulsado principalmente por una fuerte adopción de nuevos productos de conectividad óptica para la IA generativa. Para el tercer trimestre de 2024, la dirección espera que las ventas centrales crezcan a aproximadamente 3,7 mil millones de dólares, con un BPA central en el rango de 0,50 a 0,54 dólares.

Entre los aspectos destacados se incluyen:

  • Ventas récord en la parte empresarial de Comunicaciones Ópticas, con un aumento del 42% interanual
  • Acuerdo con Lumen Technologies para reservar el 10% de la capacidad global de fibra de Corning para centros de datos habilitados para IA
  • El margen bruto central mejoró al 37,9%, un aumento de 170 puntos base en comparación con el año anterior
  • Flujo de caja libre ajustado de 353 millones de dólares

Los resultados refuerzan la confianza de la dirección en su plan 'Springboard' para agregar más de 3 mil millones de dólares en ventas anualizadas con un fuerte beneficio incremental y flujo de caja en los próximos tres años.

코닝 주식회사 (NYSE: GLW)는 2024년 2분기 강력한 실적을 보고하며, 4월 가이던스를 초과 달성하고 전년 대비 매출 성장으로 돌아섰습니다. 핵심 매출은 36억 달러에 달해, 전년 대비 4% 증가했으며, 핵심 EPS는 0.47 달러로 4% 증가했습니다. 이 초과 성장은 주로 생성적 AI를 위한 새로운 광 연결 제품의 강력한 수용에 의해 촉진되었습니다. 2024년 3분기에는 핵심 매출이 약 37억 달러로 성장할 것으로 예상하며, 핵심 EPS는 0.50~0.54 달러 범위에 이를 것으로 보입니다.

주요 사항은 다음과 같습니다:

  • 광통신의 Enterprise 부문에서 전년 대비 42% 증가한 기록적인 매출
  • Lumen Technologies와의 협약을 통해 코닝의 전 세계 섬유 용량의 10%를 AI 지원 데이터 센터에 예약
  • 핵심 총 이익률이 37.9%로 향상되어, 전년 대비 170 베이시스 포인트 상승
  • 조정된 자유 현금 흐름은 3억 5,300만 달러

이 결과는 향후 3년간 강력한 추가 이익과 현금 흐름으로 연간 30억 달러 이상의 매출을 증가시키기 위한 ‘스프링보드’ 계획에 대한 경영진의 신뢰를 강화합니다.

Corning Incorporated (NYSE: GLW) a annoncé des résultats solides pour le deuxième trimestre 2024, dépassant les prévisions d'avril et marquant un retour à la croissance des ventes d'une année sur l'autre. Les ventes principales ont atteint 3,60 milliards de dollars, en hausse de 4% par rapport à l'année précédente, tandis que le BPA principal était de 0,47 dollar, également en hausse de 4%. Cette surperformance a été principalement entraînée par une forte adoption de nouveaux produits de connectivité optique pour l'IA générative. Pour le troisième trimestre 2024, la direction s'attend à ce que les ventes principales atteignent environ 3,7 milliards de dollars, avec un BPA principal dans la fourchette de 0,50 à 0,54 dollar.

Les points saillants incluent :

  • Des ventes record dans le segment Entreprise des Communications Optiques, en hausse de 42% par rapport à l'année précédente
  • Accord avec Lumen Technologies pour réserver 10% de la capacité mondiale de fibre de Corning pour les centres de données alimentés par IA
  • La marge brute principale a amélioré à 37,9%, soit une augmentation de 170 points de base par rapport à l'année précédente
  • Flux de trésorerie libre ajusté de 353 millions de dollars

Les résultats renforcent la confiance de la direction dans son plan 'Springboard' visant à ajouter plus de 3 milliards de dollars en ventes annualisées avec un solide profit et un flux de trésorerie supplémentaire au cours des trois prochaines années.

Corning Incorporated (NYSE: GLW) hat im zweiten Quartal 2024 starke Ergebnisse berichtet, die die Prognosen aus April übertrafen und ein Comeback des Umsatzwachstums im Jahresvergleich markieren. Der Kernumsatz belief sich auf 3,60 Milliarden Dollar, was einem Anstieg von 4% im Vergleich zum Vorjahr entspricht, während der Kern-EPS bei 0,47 Dollar lag, ebenfalls um 4% gestiegen. Die Überperformance wurde hauptsächlich durch die starke Akzeptanz neuer optischer Verbindungslösungen für generative KI getragen. Für das dritte Quartal 2024 erwartet das Management ein Wachstum des Kernumsatzes auf etwa 3,7 Milliarden Dollar, mit einem Kern-EPS im Bereich von 0,50 bis 0,54 Dollar.

Zu den Highlights gehören:

  • Rekordverkäufe im Unternehmensbereich der optischen Kommunikation, ein Anstieg von 42% im Jahresvergleich
  • Vereinbarung mit Lumen Technologies zur Reservierung von 10% der globalen Glasfaser-Kapazität von Corning für KI-unterstützte Rechenzentren
  • Der Kernbruttomargen verbesserte sich auf 37,9%, ein Anstieg um 170 Basispunkte im Jahresvergleich
  • Bereinigter Free Cash Flow von 353 Millionen Dollar

Die Ergebnisse stärken das Vertrauen des Managements in seinen 'Springboard'-Plan, der in den nächsten drei Jahren über 3 Milliarden Dollar an annualisierten Verkäufen mit starken zusätzlichen Gewinnen und Cashflow generieren soll.

Positive
  • Core sales increased 4% year-over-year to $3.60 billion in Q2 2024
  • Core EPS grew 4% year-over-year to $0.47 in Q2 2024
  • Record sales in Enterprise portion of Optical Communications, up 42% year-over-year
  • Core gross margin improved 170 basis points year-over-year to 37.9%
  • Adjusted free cash flow of $353 million in Q2 2024
  • Agreement with Lumen Technologies to reserve 10% of global fiber capacity for AI-enabled data centers
  • Management expects Q3 2024 core sales to grow to ~$3.7 billion
  • Q3 2024 core EPS guidance of $0.50 to $0.54, growing faster than sales
Negative
  • GAAP net income decreased 63% year-over-year to $104 million in Q2 2024
  • Hemlock and Emerging Growth Businesses sales down 21% year-over-year due to lower solar-grade polysilicon pricing
  • Environmental Technologies sales down 6% year-over-year due to North American Class 8 truck downcycle

Insights

Corning's Q2 2024 results demonstrate strong performance and positive momentum, particularly in its Optical Communications segment. Here are the key takeaways:

  • Core sales grew 4% year-over-year to $3.60 billion, exceeding guidance.
  • Core EPS increased 4% to $0.47, also surpassing expectations.
  • Optical Communications segment saw a 42% increase in Enterprise sales, driven by AI-related connectivity solutions.
  • Core gross margin improved by 170 basis points year-over-year to 37.9%.
  • Adjusted free cash flow reached $353 million.

The company's 'Springboard' plan aims to add over $3 billion in annualized sales with strong incremental profit and cash flow in the next three years. This ambitious target, coupled with the agreement with Lumen Technologies to reserve 10% of Corning's global fiber capacity, signals confidence in future growth prospects.

For Q3 2024, management expects core sales to grow to approximately $3.7 billion with core EPS in the range of $0.50 to $0.54. This guidance suggests continued momentum, particularly in the AI-driven optical connectivity market.

While the overall picture is positive, investors should note the anticipated slowdown in the North American Class 8 truck market, which may impact the Environmental Technologies segment in the coming quarters.

Corning's Q2 results highlight the growing importance of AI in driving demand for advanced optical connectivity solutions. The 42% year-over-year growth in Enterprise sales within the Optical Communications segment is a clear indicator of this trend.

The agreement with Lumen Technologies is particularly noteworthy. It involves Corning's new generative-AI fiber and cable system, which allows for a 2-4x increase in fiber capacity within existing conduits. This technological advancement positions Corning at the forefront of the AI infrastructure buildout, potentially leading to sustained demand and market share gains.

The company's focus on AI-related products extends beyond optical communications. In the Specialty Materials segment, we see continued strong demand for semiconductor-related products, which are important for AI chip production.

However, it's important to note that while AI is driving growth in certain segments, other areas like Display Technologies and Environmental Technologies face different market dynamics. The diversification across multiple tech-driven markets could help Corning balance potential fluctuations in any single sector.

Looking ahead, the rapid expansion of AI data centers and the need for high-speed, high-capacity connectivity solutions present a significant opportunity for Corning. The company's ability to innovate and quickly bring to market products tailored for AI applications will be important in capitalizing on this trend.

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, N.Y.--(BUSINESS WIRE)-- 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 companys 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.

 

Media Relations:

Michael A. West Jr.

(607) 684-1167

westm4@corning.com

Investor Relations:

Ann H.S. Nicholson

(607) 974-6716

nicholsoas@corning.com

Source: Corning Incorporated

FAQ

What were Corning's (GLW) core sales and EPS for Q2 2024?

Corning's core sales for Q2 2024 were $3.60 billion, up 4% year-over-year. Core EPS was $0.47, also up 4% year-over-year.

How did Corning's (GLW) Optical Communications segment perform in Q2 2024?

Corning's Optical Communications segment saw strong growth, with sales up 4% year-over-year to $1.1 billion. The Enterprise portion of the business achieved record sales, up 42%, driven by AI-related connectivity solutions.

What is Corning's (GLW) financial outlook for Q3 2024?

For Q3 2024, Corning expects core sales to grow to approximately $3.7 billion, with core EPS in the range of $0.50 to $0.54. Core EPS is expected to grow faster than sales.

What agreement did Corning (GLW) reach with Lumen Technologies in Q3 2024?

Corning and Lumen Technologies reached an agreement to reserve 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.

How did Corning's (GLW) gross margin perform in Q2 2024?

Corning's core gross margin improved to 37.9% in Q2 2024, up 170 basis points year-over-year and 110 basis points sequentially.

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