Corning Announces Third-Quarter Results.LCD Volume Strong CORNING, N.Y. -- Corning Incorporated Corning Incorporated NYSE: GLW is an American manufacturer of glass, ceramics and related materials, primarily for industrial and scientific applications. The company was known until 1989 as Corning Glass Works. (NYSE NYSE See: New York Stock Exchange : GLW GLW Glasgow Airport (UK) GLW Gross Laden Weight GLW Good Lady Wife (Australia) ) today announced third-quarter sales of $1.28 billion and net income of $438 million, or $0.27 per share. Corning's third-quarter results include a charge of $13 million, or $0.01 per share, primarily reflecting the increase in market value of Corning common stock to be contributed to settle the asbestos litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related to Pittsburgh Corning Corporation. Excluding this charge, Corning's third-quarter net income would have been $451 million, or $0.28 per share. These are non-GAAP financial measures. These and all non-GAAP financial measures are reconciled on the company's investor relations Investor relations The process by which the corporation communicates with its investors. Web site and in attachments to this news release. "This was an excellent quarter for Corning," Wendell P. Weeks, president and chief executive officer, said. "At the beginning of the third quarter, we were uncertain about the pace of the recovery from the excess panel inventory correction in the liquid crystal display liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. (LCD) supply chain. We were pleased that glass demand improved each month throughout the quarter as our customers geared up to meet the anticipated fourth-quarter demand for LCD televisions, notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. and desktop monitors," he said. Third-Quarter Operating Results Corning's third-quarter sales of $1.28 billion increased slightly over second-quarter sales of $1.26 billion and by 8 percent over last year's third-quarter sales of $1.19 billion. Gross margin for the third quarter remained strong at 44 percent. Equity earnings for the third quarter were $232 million compared to second-quarter equity earnings of $256 million, which included a $33 million tax gain at Dow Corning Dow Corning is a multinational corporation headquartered in Midland, Michigan, USA. Dow Corning specializes in silicon and silicone-based technology, offering more than 7,000 products and services. Dow Corning is equally owned by The Dow Chemical Company and Corning, Inc. Corporation. Dow Corning's third-quarter equity earnings were $78 million. Third-quarter sales for Corning's Display Technologies segment were $506 million, a 3 percent increase over 2005 third-quarter sales of $489 million. Year-over-year LCD glass volume increased 31 percent in the third quarter, largely offset by price declines and the impact of foreign exchange rates. Sequentially, third-quarter sales increased 10 percent from second-quarter sales of $461 million as volume increases of 16 percent were offset somewhat by price declines and the impact of foreign exchange rates. Samsung Corning Precision Glass  The of this article or section may be compromised by "peacock terms".You can help Wikipedia by removing peacock terms. Co., Ltd.'s (SCP (1) (Service Control Point) A node in an SS7 telephone network that provides an interface to databases, which may reside within the SCP computer or in other computers. ) third-quarter volume increased 38 percent year-over-year and 11 percent sequentially. Equity earnings from SCP were $135 million, up 18 percent over last year and up about 2 percent compared with the second quarter. Total LCD glass volume, including both Corning's wholly owned business and SCP, increased 35 percent year-over-year and 13 percent sequentially. Telecommunications segment sales for the third quarter were $456 million, declining 3 percent from the previous quarter but in line with expectations. The decline was primarily due to lower volume of fiber-to-the-premises (FTTP (Fiber To The Premises) The installation of optical fiber from the carrier directly into the home or office. Also called "fiber to the home" (FTTH). See PON and FTTC. See also FTP. ) products and price declines. The company's Environmental Technologies segment had sales of $153 million compared to second-quarter sales of $152 million, reflecting relatively flat sales of both automotive and diesel products. In early October, Corning announced its first long-term diesel emissions-control products supply agreement with Cummins Emissions Solutions, a business unit of Cummins Inc. Sales in Corning's Life Sciences segment declined sequentially primarily due to a softer market in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. Cash Flow/Liquidity Update Corning ended the third quarter with $2.8 billion in cash and short-term investments, an increase from $2.5 billion in the previous quarter. The increase in cash and short-term investments is primarily due to the issuance of $250 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to replace debt repurchased in the second quarter. "Maintaining significant cash is important to Corning's long-term financial health and to enable us to invest in new business opportunities that emerge from our research laboratories," James B. Flaws, vice chairman and chief financial officer, said. In the third quarter, Corning had positive free cash flow of $76 million and remains on track to be free cash flow positive for the year. Free cash flow is a non-GAAP financial measure. Fourth-Quarter Outlook Corning expects fourth-quarter sales to be in the range of $1.28 billion to $1.33 billion and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in the range of $0.26 to $0.29, before special items. This EPS estimate is a non-GAAP financial measure and excludes any special items. Gross margin for the fourth quarter is expected to be in the range of 44 percent to 46 percent and selling, general and administrative expenses are expected to be in the range of 17 percent to 18 percent of sales. The fourth-quarter tax rate is expected to be in the range of 13 percent to 15 percent. In its Display Technologies segment, Corning expects that fourth-quarter sequential volume growth for its wholly owned business will be in the range of 20 percent to 30 percent as the strong demand experienced at the end of the third quarter continues into the fourth quarter. Samsung Corning Precision's fourth-quarter volume is expected to increase sequentially between 8 percent and 12 percent. Corning expects that fourth-quarter price declines will be consistent with the third quarter. "We are expecting our display segment to perform well in the fourth quarter," Flaws said. "We anticipate that LCD TV A flat panel TV that uses LCD technology or a rear-projection TV that is based on LCD microdisplay panels. See flat panel TV, rear-projection TV and LCD. sales will exceed 20 percent of the global television market this year," he said. Corning's LCD glass volume for the first three quarters, including both its wholly owned business and SCP, increased more than 50 percent versus last year. "With the expected fourth-quarter growth, Corning's full-year volume growth should be in line with our expectations for the year. Our capability to deliver larger-generation substrate solutions and environmentally green glass with our EAGLE XG[TM] composition has allowed us to maintain a market leadership position," Flaws said. Corning's fourth-quarter Telecommunications segment sales are expected to decline sequentially by 20 percent to 25 percent due to normal seasonality, lower FTTP volume and price declines. Fourth-quarter sales in the company's Environmental Technologies segment are expected to be flat with the previous quarter. Fourth-quarter equity earnings are expected to be flat to down 5 percent. Flaws also said that the company has been encouraged by its initial diesel products sales and expects that volume should continue to build as the industry gears up for the implementation of the stricter 2007 U.S. environmental emissions requirements for diesel engines. He said that the volume ramp should occur over several quarters into next year. "An important goal for the long-term success of the company is the development of a more balanced product portfolio," Weeks said. "We continue to maintain an investment of approximately 10 percent of our sales into research, development and engineering. A highlight of our third quarter was the introduction of Corning's Epic[TM] system, the life science industry's first label-free, high-throughput drug screening system. Our exploration into new advanced displays such as single-crystal silicon-on-glass technology, green laser applications, carbon-based energy storage (fuel cells) and optical fiber-radio technology are a few examples of some of our more promising early-stage developments currently in our laboratories," Weeks said. He noted that these types of technology developments often take as long as 10 years before they are commercialized into the marketplace. Additionally, the company announced that it will be meeting with investors and presenting at four upcoming conferences: Western New York
Western New York refers to the westernmost region of New York State. Investor Conference in Buffalo, N.Y. on Oct. 31; UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Global Communications and Technology Conference in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on Nov. 14; Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Annual Technology Conference in Scottsdale, Ariz., on Nov. 28 and Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Global Technology Conference in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden on Dec. 7. Third-Quarter Conference Call Information The company will host a third-quarter conference call at 8:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on Wednesday, Oct. 25. To access the call, dial (210) 234-8000. The password is QUARTER THREE. The leader is SOFIO. A replay of the call will begin at approximately 10:30 a.m. EDT, and will run through 5 p.m. EDT, Wednesday, Nov. 8. To listen, dial (203) 369-0648. No pass code is required. To listen to a live audio webcast of the call, go to Corning's Web site: http://www.corning.com/investor_relations, and follow the instructions. The audio webcast will be archived for one year following the call. Presentation of Information in this News Release Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Corning's non-GAAP net income and EPS measure excludes restructuring, impairment and other charges and adjustments to prior estimates for such charges. Additionally, the company's non-GAAP measure excludes adjustments to asbestos settlement reserves required by movements in Corning's common stock price, gains and losses arising from debt retirements, charges resulting from the impairment of equity or cost method investments, or adjustments to deferred tax assets, and gains or losses recognized in equity earnings from restructuring, impairment or other charges or credits taken by equity method companies. Corning's free cash flow financial measures are also non-GAAP measures. The company believes presenting non-GAAP free cash flow; net income and EPS measures are helpful to analyze financial performance without the impact of unusual items that may obscure trends in the company's underlying performance. These non-GAAP measures are reconciled on the company's Web site at www.corning.com/investor_relations and accompany this news release. About Corning Incorporated Corning Incorporated (www.corning.com) is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Corning combines its expertise in specialty glass, ceramic materials, polymers and the manipulation of the properties of light, with strong process and manufacturing capabilities to develop, engineer and commercialize significant innovative products for the telecommunications, flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time , environmental, semiconductor, and life sciences industries. Forward-Looking and Cautionary Statements This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes in global economic and political conditions; tariffs, import duties and currency fluctuations; product demand and industry capacity; competition; manufacturing efficiencies; cost reductions; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; changes in the mix of sales between premium and non-premium products; facility expansions and new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; adequacy and availability of insurance; capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. ; equity company activities; acquisition and divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). activities; the level of excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; the rate of technology change; the ability to enforce patents; product and components performance issues; stock price fluctuations; and adverse litigation or regulatory developments. Additional risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events. 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