Corning CFO Meets with Investors at Needham Growth Conference.Business Editors CORNING, N.Y.--(BUSINESS WIRE)--Jan. 10, 2003 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) ) on Thursday, Jan. 9, 2003, told financial analysts at the fifth annual Needham Growth Conference in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. that the company continues to focus on three primary business goals in 2003. James B. Flaws, vice chairman and chief financial officer, told analysts that the company's first objective is "to continue to protect the financial health of the company." He said that Corning would maintain significant cash balances, improve cash flow and continue to pay down debt. Flaws commented on the second and third objectives by saying, "we are absolutely focused on getting back to profitability in 2003 and we will also continue to invest in the future, primarily through ongoing research and development initiatives." He reviewed a number of the company's previously announced restructuring actions, including the closure of a fiber manufacturing facility in Australia; the proposed closing of a fiber plant in Germany; the mothballing Mothballing The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working order so that production may be restored quickly if needed. of fiber operations in Concord, N.C.; reductions of capacity at its cabling and hardware and equipment locations worldwide; and the permanent closure of its thin-filter manufacturing facility in Massachusetts. Flaws said these actions are all part of the company's previously announced plan to reduce its fixed cost structure, and they are expected to result in more than $400 million in annual savings and a pre-tax restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $550 million to $650 million in the fourth quarter of 2002. He also reminded investors that Corning had announced it would take charges of $800 million to $825 million pre-tax in its 2002 fourth-quarter results. This charge will cover a $400 million impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill in the telecommunications segment and a $400 million to $425 million impairment of assets related to its conventional television glass and photonics technologies businesses. As a part of Corning's plan to restore profitability in 2003, Flaws told analysts that the company will continue to reduce the fixed-cost structure in its optical fiber and cable businesses, narrow its product scope in photonics, reduce corporate staff spending, it may need to implement additional headcount reductions in 2003. Flaws also said the company was considering a number of options for its photonics business including the potential of partnerships, joint ventures or other possibilities. He said that the company would continue to invest in that business; however, it would be at a reduced level. He also told analysts that while the telecommunications industry remains depressed, Corning's fiber and cable businesses, "are currently cash-flow positive before restructuring charges, and despite the continued pricing pressure and low-volume growth expectations, we are working to restore these businesses to profitability." Flaws said that Corning's business diversity is proving to be significant for the company as its 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. glass business continues to operate at full capacity and, "through the third quarter, the business had posted year-over-year volume gains of more than 50 percent. We continue to be excited about current and future prospects of this business." He said that larger screens for desktop computer monitors are driving demand for new innovative glass, LCD televisions are quickly becoming reality and this market is expected to grow between 25 percent and 30 percent annually over the next several years. Flaws did not provide financial guidance or comment on the company's 2002 fourth-quarter results, noting that Corning was officially in the "quiet period." Corning will release its fourth-quarter financial results after the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. closes on Thursday, Jan. 23, 2003. The company will host a conference call for analysts on Friday, Jan. 24, 2003 at 8:30 a.m. To participate, interested parties should call (630) 395-0023 approximately 15 minutes prior to the start of the call. The password to gain access is EARNINGS and the leader of the call is SOFIO. A live audio webcast will be accessible through the Corning website at: http://www.corning.com/investor_relations. In responding to questions after his presentation, Flaws noted that while a log-jam still appeared to be in place in Washington regarding telecommunication regulations and economic recovery incentives, he was encouraged by recent news reports indicating some movement as well as the possibility of a federal economic stimulus plan. Flaws reiterated Corning's previous announcement that it would consider recognizing equity earnings from 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 in 2003 as a result of a recent federal court decision. Flaws' presentation at the Needham conference was webcast and replays are available on Corning Incorporated's website at www.corning.com. About Corning Incorporated Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies that offer growth opportunities in markets that fuel the world's economy. Corning manufactures optical fiber, cable and photonic Dealing with light (photons). See photon and photonics. products for the telecommunications industry; and high-performance display glass and components for television, information technology and other communications-related industries. The company also uses advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, to manufacture products for scientific, semiconductor and environmental markets. 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 or fluctuations in global economic conditions; currency exchange rates; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; 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. by larger customers in the telecommunications industry and other business segments; the mix of sales between premium and non-premium products; possible disruption in commercial activities due to terrorist activity and armed conflict; ability to obtain financing and capital on commercially reasonable terms; 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 ability to enforce patents; product and components performance issues; and 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. . These and other 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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