Corning Pro Forma Earnings Per Share Up 80% in Second Quarter.Business Editors CORNING Corning, city (1990 pop. 11,938), Steuben co., S N.Y., on the Chemung River, in a dairy and vineyard region; settled 1788, inc. as a city 1890. The glass industry for which the city is famous began in 1868. , N.Y.--(BUSINESS WIRE)--July 17, 2000 Strong Demand for Corning's High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Products Drives Results, Company's Full-Year Earnings Outlook Increases 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) ) reported today that its second quarter pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share increased 80%. The performance was driven by strong demand for Corning's high-technology products, particularly its high-data rate optical fiber and cable, and LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. flat-panel display flat-pan·el display n. A thin lightweight video display used in laptop and notebook computers and employing liquid crystals, electroluminescence, or a similar alternative to cathode-ray tubes. Also called flat screen. glass. The company reported second-quarter pro forma earnings of $0.94 per share, compared with $0.52 per share in the same quarter of 1999. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the second quarter of 2000 totaled $271.1 million, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. double the $136.5 million from the second quarter of 1999. Pro forma net income excludes amortization of purchased intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and goodwill, purchased in-process research and development, one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. acquisition costs, discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and other non-recurring items. "Clearly, this is a blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. quarter for Corning," said Roger G. Ackerman, Corning's chairman and chief executive officer. "We are living in an increasingly bandwidth-intensive economy and our financial performance is evidence that Corning has truly emerged as a world-leading provider of technologies and products in the optical layer, where fiber joins with photonic Dealing with light (photons). See photon and photonics. devices to power today's optical networks." The company also announced that it is raising its full-year pro forma earnings per share outlook to a range of $3.15 - $3.25, an increase of approximately 60% versus last year's $2.00. "This revised outlook reflects our very strong performance this quarter and confidence for continued unprecedented demand for Corning's market-leading products through year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. ," said Ackerman. "Our strategy is working. We are winning significant contracts, making the right strategic acquisition decisions, investing in capacity, and continuing with aggressive research and development to ensure our future success." Second quarter sales were $1.78 billion, an increase of 57% over 1999 second quarter sales of $1.13 billion. Excluding the impact of acquisitions, sales increased 41%. Overall demand for optical fiber increased with a year-over-year growth rate of approximately 40%. Sales in Photonic Technologies nearly doubled, led by demand for the company's optical amplifiers A device that boosts light signals in an optical fiber network. Unlike regenerators, which have to convert light to electricity in order to amplify it and then convert it back again to light, the optical amplifier amplifies the light signal itself. . Sales of flat-panel display glass used primarily used in computer monitors grew more than 70%. Equity earnings were up 28% in the quarter due primarily to strong results by Samsung Corning Precision Glass  The of this article or section may be compromised by "peacock terms".You can help Wikipedia by removing peacock terms. Company, Ltd., a Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known manufacturer of flat-panel LCD display glass, and Samsung-Corning Company Ltd., a Korean manufacturer of glass for conventional TV and computer monitors. Corning also recorded a second quarter charge of $50.7 million after tax, or $0.17 per share, related to recent acquisitions. Including this non-recurring item and the amortization of purchased intangibles and goodwill, Corning's net income for the second quarter of 2000 totaled $149.2 million, or $0.52 per share. This compares with second quarter 1999 net income of $131.0 million, or $0.50 per share. Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry; and high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" displays and components for television 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. Corning's revenues in 1999 were $4.7 billion. Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and Cautionary Statements Except for historical information and discussions contained herein, statements included in this release may constitute "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve a number of risks, uncertainties and other factors that could cause results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission.
Corning Incorporated and Subsidiary Companies
Pro Forma Consolidated Statements of Income
Excluding Amortization of Purchased Intangibles and Goodwill,
Purchased In-Process Research and Development,
Acquisition-Related Costs and Non-Recurring Items
(In millions, except per share amounts)
Six Months Ended June 30, Three Months Ended June 30,
------------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
Revenues
Net sales $ 3,127.0 $ 2,126.7 $ 1,775.6 $ 1,129.7
Royalty, interest,
and dividend income 50.4 21.3 26.9 11.3
---------- --------- ---------- ---------
3,177.4 2,148.0 1,802.5 1,141.0
Deductions
Cost of sales 1,817.7 1,307.2 1,029.9 693.3
Selling, general and
administrative
expenses 457.8 303.4 258.0 151.2
Research, development
and engineering
expenses 230.2 171.9 120.1 88.5
Interest expense 52.7 40.1 28.5 20.4
Other, net 32.7 20.6 11.8 10.7
---------- --------- ---------- ---------
Income before taxes 586.3 304.8 354.2 176.9
Taxes on income 190.0 92.6 114.9 53.8
---------- --------- ---------- ---------
Income before minority
interest and equity
earnings 396.3 212.2 239.3 123.1
Minority interest
in earnings
of subsidiaries (10.1) (27.5) (7.5) (17.4)
Dividends on convertible
preferred securities
of subsidiary (2.3)
Equity in earnings
of associated companies 73.2 52.0 39.3 30.8
---------- --------- ---------- ---------
Pro Forma Net Income $ 459.4 $ 234.4 $ 271.1 $ 136.5
========= ========= ========== =========
Pro Forma Basic Earnings
Per Share $ 1.66 $ 0.92 $ 0.96 $ 0.53
========== ========= ========== =========
Pro Forma Diluted
Earnings Per Share $ 1.62 $ 0.90 $ 0.94 $ 0.52
========== ========= ========== =========
Dividends Declared $ 0.36 $ 0.36 $ 0.18 $ 0.18
========== ========= ========== =========
Shares used in computing
pro forma earnings per share
Pro forma basic
earnings per share 275.9 252.8 281.5 257.3
========== ========= ========== =========
Pro forma diluted
earnings per share 282.7 263.5 290.7 265.3
========== ========= ========== =========
The above pro forma amounts for the six months ended June 30, 2000
have been adjusted to eliminate $62.3 million ($81.4 million after
tax) or $0.29 per share of amortization of purchased intangibles and
goodwill, $92.7 million ($76.4 million after tax) or $0.27 per share
of in-process research and development charges, $47 million ($43.4
million after tax) or $0.15 per share of transaction costs from the
Oak acquisition, $36.3 million after tax or $0.13 per share for the
impairment of the entire equity investment in Pittsburgh Corning
Corporation, and $6.8 million ($4.2 million after tax) or $0.01 per
share for a non-operating gain related to the sale of Quanterra
Incorporated.
The above pro forma amounts for the quarter ended June 30, 2000
have been adjusted to eliminate $49.2 million ($71.2 million after
tax) or $0.25 per share of amortization of purchased intangibles and
goodwill and $50.7 million, or $0.17 per share of in-process research
and development charges.
The above pro forma amounts for the six months ended June 30, 1999
have been adjusted to eliminate $13.9 million ($10.9 million after
tax) or $0.04 per share of amortization of purchased intangibles and
goodwill.
The above pro forma amounts for the quarter ended June 30, 1999
have been adjusted to eliminate $7.0 million ($5.5 million after tax)
or $0.02 per share of amortization of purchased intangibles and
goodwill.
Pro Forma
Corning Incorporated and Subsidiary Companies
Condensed Consolidated Statements of Income
(Unaudited; in millions, except per share amounts)
Six Months Ended June 30, Three Months Ended June 30,
-------------------------- -------------------------
2000 1999 2000 1999
------------- ------------ ------------ ------------
Revenues
Net sales $ 3,127.0 $ 2,126.7 $ 1,775.6 $ 1,129.7
Royalty, interest,
and dividend income 50.4 21.3 26.9 11.3
Non-operating gains 6.8
---------- ----------- ----------- -----------
3,184.2 2,148.0 1,802.5 1,141.0
Deductions
Cost of sales 1,817.7 1,307.2 1,029.9 693.3
Selling, general
and administrative
expenses 457.8 303.4 258.0 151.2
Research, development
and engineering
expenses 230.2 171.9 120.1 88.5
Amortization of
purchased intangibles
including goodwill 62.3 13.9 49.2 7.0
Interest expense 52.7 40.1 28.5 20.4
Acquisition-related
charges 139.7 50.7
Other, net 32.7 20.6 11.8 10.7
---------- ----------- ----------- ----------
Income before taxes 391.1 290.9 254.3 169.9
Taxes on income 191.8 89.6 136.9 52.3
---------- ----------- ----------- ----------
Income before minority
interest and
equity earnings 199.3 201.3 117.4 117.6
Minority interest in
earnings of
subsidiaries (10.1) (27.5) (7.5) (17.4)
Dividends on convertible
preferred securities
of subsidiary (2.3)
Equity in earnings of
associated companies 73.2 52.0 39.3 30.8
Impairment of equity
investment (36.3)
---------- ----------- ----------- -----------
Net Income $ 226.1 $ 223.5 $ 149.2 $ 131.0
========== =========== =========== ==========
Basic Earnings
Per Share $ 0.82 $ 0.88 $ 0.53 $ 0.51
========== =========== ========== ==========
Diluted Earnings
Per Share $ 0.80 $ 0.86 $ 0.52 $ 0.50
========== =========== ========== ==========
Dividends Declared $ 0.36 $ 0.36 $ 0.18 $ 0.18
========== =========== =========== ==========
Shares used in computing
earnings per share
Basic earnings
per share 275.9 252.8 281.5 257.3
========== =========== ========== ==========
Diluted earnings
per share 282.7 263.5 290.7 265.3
========== =========== ========== ==========
The accompanying notes are an integral
part of these statements.
Corning Incorporated and Subsidiary Companies
Condensed Consolidated Balance Sheets
(Unaudited; in millions)
June 30, 2000 Dec. 31, 1999
------------- -------------
Assets
Current Assets
Cash and short-term investments $ 1,379.5 $ 280.4
Accounts receivable, net 1,219.6 872.4
Inventories 839.8 602.2
Deferred taxes on income and
other current assets 207.6 229.2
------------ -----------
Total current assets 3,646.5 1,984.2
Investments 515.7 504.4
Plant and equipment, net 3,856.5 3,201.7
Goodwill and other intangible
assets, net 3,586.3 506.7
Other assets 328.9 329.0
------------ -----------
Total Assets $ 11,933.9 $ 6,526.0
============ ===========
Liabilities and
Shareholders' Equity
Current Liabilities
Loans payable $ 126.3 $ 420.7
Accounts payable 445.0 418.0
Other accrued liabilities 835.4 715.3
------------ -----------
Total current liabilities 1,406.7 1,554.0
Other liabilities 802.4 720.6
Loans payable beyond one year 1,977.3 1,490.4
Minority interest in
subsidiary companies 132.6 284.8
Convertible preferred stock 9.6 13.5
Common shareholders' equity 7,605.3 2,462.7
------------ -----------
Total Liabilities and
Shareholders' Equity $ 11,933.9 $ 6,526.0
============ ===========
The accompanying notes are an integral part of these statements.
Corning Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 2, 2000
(1) Information by Operating Segment
Information about the performance of Corning's three operating
segments for the second quarter and six months of 2000 and 1999 is
presented below. These amounts exclude revenues, expenses and
equity earnings not specifically identifiable to segments. In the
first quarter of 2000, Corning changed the performance measurement
of its operating segments to a new metric - net income excluding
amortization of purchased intangibles and goodwill, purchased
in-process research and development costs, one-time acquisition
costs and other non-recurring items. This measure is not in
accordance with generally accepted accounting principles (GAAP)
and may not be consistent with measures used by other companies.
The segment results for 1999 have been restated to conform to the
new measure.
Corning prepared the financial results for its three operating
segments on a basis that is consistent with the manner in which
Corning management internally disaggregates financial information
to assist in making internal operating decisions. Corning has
allocated some common expenses among segments differently than it
would for stand alone financial information prepared in accordance
with GAAP.
Six months ended Three months ended
June 30, June 30,
-------------------- ------------------
2000 1999 2000 1999
--------- -------- --------- --------
Telecommunications
Net sales $ 2,175.6 $ 1,285.8 $ 1,282.2 $ 692.5
Research, development and
engineering expenses $ 161.3 $ 115.7 $ 84.2 $ 59.6
Interest expense $ 33.7 $ 25.2 $ 18.5 $ 12.8
Segment earnings before
minority interest and
equity earnings $ 282.2 $ 141.8 $ 174.4 $ 81.4
Minority interest in
earnings of subsidiaries 3.0 (13.0) (8.7)
Equity in earnings
of associated companies (3.2) 6.6 (2.8) 2.6
---------- ---------- ---------- ---------
Segment net income $ 282.0 $ 135.4 $ 171.6 $ 75.3
========== ========== ========== =========
Advanced Materials
Net sales $ 536.3 $ 516.8 $ 272.1 $ 264.7
Research, development and
engineering expenses $ 57.3 $ 45.1 $ 30.1 $ 23.2
Interest expense $ 11.2 $ 9.2 $ 5.7 $ 4.9
Segment earnings before
minority interest and
equity earnings $ 45.8 $ 48.0 $ 23.9 $ 28.0
Minority interest in earnings
of subsidiaries 0.1
Equity in earnings of associated
companies 11.8 7.6 5.3 3.5
---------- ---------- ---------- ---------
Segment net income $ 57.6 $ 55.7 $ 29.2 $ 31.5
========== ========== ========== =========
Information Display
Net sales $ 403.5 $ 311.7 $ 215.6 $ 166.0
Research, development and
engineering expenses $ 11.6 $ 11.1 $ 5.8 $ 5.7
Interest expense $ 7.5 $ 5.3 $ 4.1 $ 2.7
Segment earnings before
minority interest and
equity earnings $ 52.4 $ 27.2 $ 33.1 $ 17.8
Minority interest in
earnings of subsidiaries (13.1) (14.7) (7.5) (8.8)
Equity in earnings of
associated companies 62.1 34.6 35.3 22.2
---------- ---------- ---------- ---------
Segment net income $ 101.4 $ 47.1 $ 60.9 $ 31.2
========== ========== ========== =========
Total segments
Net sales $ 3,115.4 $ 2,114.3 $ 1,769.9 $1,123.2
Research, development and
engineering expenses $ 230.2 $ 171.9 $ 120.1 $ 88.5
Interest expense $ 52.4 $ 39.7 $ 28.3 $ 20.4
Segment earnings before
minority interest and
equity earnings $ 380.4 $ 217.0 $ 231.4 $ 127.2
Minority interest in
earnings of subsidiaries (10.1) (27.6) (7.5) (17.5)
Equity in earnings of
associated companies 70.7 48.8 37.8 28.3
---------- ---------- ---------- ---------
Segment net income $ 441.0 $ 238.2 $ 261.7 $ 138.0
========== ========== ========== =========
A reconciliation of the totals reported for the operating segments
to the applicable line items in the consolidated financial
statements is as follows:
Six months ended Three months ended
June 30, June 30,
---------------------- -----------------------
2000 1999 2000 1999
----------- ---------- ----------- ----------
Revenues
Total segment net sales $ 3,115.4 $ 2,114.3 $ 1,769.9 $ 1,123.2
Non-segment net sales (a) 11.6 12.4 5.7 6.5
Royalty, interest and
dividend income 50.4 21.3 26.9 11.3
Non-operating gain 6.8
--------- ---------- ---------- ---------
Total revenues $ 3,184.2 $ 2,148.0 $ 1,802.5 $ 1,141.0
========= ========== ========= =========
Net income
Total segment income (b) $ 441.0 $ 238.2 $ 261.7 $ 138.0
Unallocated items:
Non-segment loss and
other(a) (3.6) (6.4) (1.4) (5.8)
Non-operating gain 6.8
Amortization of purchased
intangibles and goodwill (c) (62.3) (13.9) (49.2) (7.0)
Acquisition-related charges (139.7) (50.7)
Interest income (d) 34.2 19.0
Interest expense (0.3) (0.4) (0.2)
Income tax (e) (16.2) 5.1 (31.5) 3.3
Equity in earnings of
associated companies (a) 2.5 3.2 1.5 2.5
Impairment of equity
investment (36.3)
Dividends on convertible
preferred securities
of subsidiary (2.3)
---------- ---------- ---------- ---------
Net income $ 226.1 $ 223.5 $ 149.2 $ 131.0
========= ========== ========== =========
(a) Includes amounts derived from corporate investments.
(b) Includes royalty, interest and dividend income.
(c) Amortization of purchased intangibles and goodwill relates
primarily to the Telecommunications segment.
(d) Corporate interest income is not allocated to reportable segments.
(e) Includes tax associated with unallocated items.
(2) Business Combinations
On June 12, 2000, Corning completed the acquisition of its remaining
67% interest in IntelliSense Corporation, a manufacturer of
micro-electro-mechanical devices in exchange for 2,016,755 shares
of Corning common stock and the assumption of stock options
convertible into 656,104 shares of Corning common stock. This
consideration was valued at approximately $410 million. An
additional 339,921 shares may be issued assuming the achievement
of certain product milestones in 2001. The acquisition was
accounted for as a purchase. The excess of the purchase price over
the estimated fair value of tangible assets acquired was allocated
primarily to goodwill and in-process research and development.
Goodwill of approximately $388 million will be amortized on a
straight-line basis over thirteen years. Corning recorded a charge
of $6.7 million, or $0.02 per share for in-process research and
development.
On May 12, 2000, Corning completed the acquisition of NetOptix
Corporation for 11,239,689 shares of Corning common stock and the
assumption of stock options convertible into 829,080 Corning
shares in a transaction valued at approximately $2.1 billion.
NetOptix manufactures thin film filters for use in dense
wavelength division multiplexing components. The acquisition was
accounted for as a purchase. The excess of the purchase price over
the estimated fair value of tangible assets acquired was allocated
to goodwill. Goodwill of approximately $2.065 billion will be
amortized on a straight-line basis over ten years.
On May 5, 2000, Corning completed the acquisition of its remaining
84% interest in NZ Applied Technologies (NZAT), a developer and
manufacturer of photonic components for optical telecommunications
applications including the optical data networks industry, in
exchange for Corning common stock. Corning issued 440,583 shares
of common stock at closing with a value of approximately $75
million, and placed an additional 440,583 shares in escrow to be
issued over the next three years contingent upon NZAT achieving
certain product development and sales milestones. The contingent
proceeds, if earned, will be recorded at the current fair value of
Corning common stock at the time of achievement. The acquisition
was accounted for as a purchase. The excess of the purchase price
over the estimated fair value of tangible assets acquired was
allocated to goodwill and in-process research and development.
Goodwill of approximately $30 million will be amortized on a
straight-line basis over ten years. Corning recorded a charge of
$44.0 million, or $0.15 per share for in-process research and
development.
(3) Depreciation and Amortization
Depreciation and amortization charged to operations for the second
quarters of 2000 and 1999 totaled $176.4 million and $102.1
million, respectively. Depreciation and amortization charged to
operations for the first six months of 2000 and 1999 totaled
$302.0 million and $203.7 million, respectively.
(4) Taxes on Income
Corning's effective income tax rate for the quarter and six months of
2000 was 53.8% and 49.0%, an increase from 30.8% and 30.8%,
respectively. The increase in the quarter and six months was
primarily due to the large amounts of non deductible purchased
intangibles and goodwill acquired in the second quarter along with
non deductible purchased in-process research and development costs
associated with acquisitions and other acquisition-related items.
Excluding the impact of the amortization of purchased intangibles
and goodwill, purchased in-process research and development costs,
one-time acquisition costs and other non-recurring items, the
effective income tax rate for the quarter and six months of 2000
was 32.4% and 32.4%, an increase from 30.4% and 30.4%,
respectively.
Corning Incorporated and Subsidiary Companies
(In millions, except per share amounts)
Income Statements (GAAP)
Exhibit 1
2000
-----------------------------------
Q1 Q2 TOTAL
--------- --------- ---------
Revenues
Net sales $ 1,351.4 $ 1,775.6 $ 3,127.0
Royalty, interest and
dividend income 23.5 26.9 50.4
Non-operating gains 6.8 6.8
--------- --------- ---------
1,381.7 1,802.5 3,184.2
Deductions
Cost of sales 787.8 1,029.9 1,817.7
Selling, general and
administrative expenses 199.8 258.0 457.8
Research, development
and engineering expenses 110.1 120.1 230.2
Amortization of purchased
intangibles 13.1 49.2 62.3
Interest expense 24.2 28.5 52.7
Non-recurring charges 89.0 50.7 139.7
Other, net 20.9 11.8 32.7
-------- --------- ---------
Income from continuing operations
before taxes on income 136.8 254.3 391.1
Taxes on income from
continuing operations 54.9 136.9 191.8
--------- --------- ---------
Income from continuing operations
before minority interest
and equity earnings 81.9 117.4 199.3
Minority interest in
earnings of subsidiaries (2.6) (7.5) (10.1)
Dividends on convertible preferred
securities of subsidiary
Equity in earnings of
associated companies 33.9 39.3 73.2
Impairment of equity investment (36.3) (36.3)
--------- -------- ---------
Income from continuing
operations 76.9 149.2 226.1
Income from discontinued
operations, net
of income taxes
-------- -------- --------
Net income $ 76.9 $ 149.2 $ 226.1
========= ========= =========
Diluted earnings per share:
Continuing operations $ 0.28 $ 0.52 $ 0.80
Discontinued operations
-------- -------- --------
$ 0.28 $ 0.52 $ 0.80
======== ========= =========
Shares used in computing
earnings per share:
Diluted earnings per share 277.3 290.7 282.7
========= ========= ==========
Corning Incorporated and Subsidiary Companies
(In millions, except per share amounts)
Income Statements (GAAP)
Exhibit 1
1999
-----------------------------------------
Q1 Q2 Q3 Q4 TOTAL
------- -------- ------- ------- -------
Revenues
Net sales $ 997.0 $1,129.7 $1,245.3 $ 1,369.1 $ 4,741.1
Royalty, interest and
dividend income 10.0 11.3 8.7 11.4 41.4
Non-operating gains 30.0 30.0
--------- -------- -------- -------- -------
1,007.0 1,141.0 1,284.0 1,380.5 4,812.5
Deductions
Cost of sales 613.9 693.3 767.0 856.1 2,930.3
Selling, general and
administrative expenses 152.2 151.2 172.0 192.0 667.4
Research, development
and engineering expenses 83.4 88.5 100.2 106.1 378.2
Amortization of purchased
intangibles 6.9 7.0 7.3 6.6 27.8
Interest expense 19.7 20.4 26.0 27.1 93.2
Non-recurring charges 15.5 (14.1) 1.4
Other, net 9.9 10.7 11.9 6.8 39.3
-------- -------- ------- ------- --------
Income from continuing
operations before
taxes on income 121.0 169.9 184.1 199.9 674.9
Taxes on income from
continuing operations 37.3 52.3 55.7 61.8 207.1
--------- -------- -------- -------- --------
Income from continuing
operations before
minority interest
and equity earnings 83.7 117.6 128.4 138.1 467.8
Minority interest in
earnings of subsidiaries (10.1) (17.4) (18.6) (20.7) (66.8)
Dividends on convertible
preferred securities
of subsidiary (2.3) (2.3)
Equity in earnings of
associated companies 21.2 30.8 32.1 28.2 112.3
Impairment of equity
investment --------- -------- --------- -------- --------
Income from continuing
operations 92.5 131.0 141.9 145.6 511.0
Income from discontinued
operations, net
of income taxes 4.8 4.8
-------- -------- -------- ------- -------
Net income $ 92.5 $ 131.0 $ 141.9 $ 150.4 $ 515.8
========= ======== ================= ========
Diluted earnings per share:
Continuing operations $ 0.36 $ 0.50 $ 0.54 $ 0.55 $ 1.95
Discontinued operations 0.02 0.02
-------- -------- -------- -------- -------
$ 0.36 $ 0.50 $ 0.54 $ 0.57 $ 1.97
======== ======== ========= ======== ========
Shares used in computing
earnings per share:
Diluted earnings
per share 260.4 265.3 265.7 266.6 265.1
======== ======== ======= ======= =======
Corning Incorporated and Subsidiary Companies
(In millions, except per share amounts)
Pro Forma Income Statements
Exhibit 2
2000
----------------------------
Q1 Q2 TOTAL
--------- --------- ---------
Revenues
Net sales $ 1,351.4 $ 1,775.6 $ 3,127.0
Royalty, interest
and dividend
income 23.5 26.9 50.4
--------- --------- ---------
1,374.9 1,802.5 3,177.4
Deductions
Cost of sales 787.8 1,029.9 1,817.7
Selling, general
and administrative
expenses 199.8 258.0 457.8
Research, development
and engineering
expenses 110.1 120.1 230.2
Interest expense 24.2 28.5 52.7
Other, net 20.9 11.8 32.7
--------- --------- ---------
Income from continuing
operations before
taxes on income 232.1 354.2 586.3
Taxes on income from
continuing operations 75.1 114.9 190.0
--------- --------- ---------
Income from continuing
operations before
minority interest
and equity earnings 157.0 239.3 396.3
Minority interest
in earnings of
subsidiaries (2.6) (7.5) (10.1)
Dividends on convertible
preferred securities
of subsidiary
Equity in earnings of
associated companies 33.9 39.3 73.2
--------- --------- ---------
Pro Forma Net income $ 188.3 $ 271.1 $ 459.4
========= ========= =========
Pro Forma Diluted
Earnings Per Share $ 0.68 $ 0.94 $ 1.62
======== ========= =========
Shares used in computing
earnings per share:
Diluted earnings
per share 277.3 290.7 282.7
========= ========= ========
Corning Incorporated and Subsidiary Companies
(In millions, except per share amounts)
Pro Forma Income Statements
Exhibit 2
1999
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
--------- --------- --------- -------- --------
Revenues
Net sales $ 997.0 $1,129.7 $1,245.3 $1,369.1 $ 4,741.1
Royalty, interest
and dividend
income 10.0 11.3 8.7 11.4 41.4
--------- --------- --------- -------- --------
1,007.0 1,141.0 1,254.0 1,380.5 4,782.5
Deductions
Cost of sales 613.9 693.3 767.0 856.1 2,930.3
Selling, general
and
administrative
expenses 152.2 151.2 172.0 192.0 667.4
Research,
development
and engineering
expenses 83.4 88.5 100.2 106.1 378.2
Interest expense 19.7 20.4 26.0 27.1 93.2
Other, net 9.9 10.7 11.9 6.8 39.3
--------- --------- --------- -------- --------
Income from continuing
operations before
taxes on income 127.9 176.9 176.9 192.4 674.1
Taxes on income from
continuing operations 38.8 53.8 51.8 57.7 202.1
--------- --------- --------- -------- --------
Income from continuing
operations before
minority interest
and equity earnings 89.1 123.1 125.1 134.7 472.0
Minority interest
in earnings of
subsidiaries (10.1) (17.4) (9.1) (20.7) (57.3)
Dividends on convertible
preferred securities
of subsidiary (2.3) (2.3)
Equity in earnings of
associated companies 21.2 30.8 32.1 28.2 112.3
--------- --------- --------- -------- --------
Pro Forma Net income $ 97.9 $ 136.5 $ 148.1 $ 142.2 $ 524.7
========= ======== ======== ======== ==========
Pro Forma Diluted
Earnings Per Share $ 0.38 $ 0.52 $ 0.56 $ 0.54 $ 2.00
========= ======== ======== ======== =========
Shares used in computing
earnings per share:
Diluted earnings
per share 260.4 265.3 265.7 266.6 265.1
========= ========= ========= ======== ========
Corning Incorporated and Subsidiary Companies
(In millions, except per share amounts)
Exhibit 3
2000
-----------------------------------
Q1 Q2 YTD
--------- --------- ---------
Net Income
Net Income $ 76.9 $ 149.2 $ 226.1
Purchased in-process
research and development 25.7(1) 50.7(13) 76.4
Oak acquisition costs 43.4(2) 43.4
Provision for impairment
and restructuring
Impairment of equity
investment 36.3(3) 36.3
Non-operating gain (4.2)(4) (4.2)
Net income from
discontinued operations
Amortization of purchased
intangibles including
goodwill 10.2(8) 71.2(14) 81.4
--------- --------- ---------
Pro Forma Net Income $ 188.3 $ 271.1 $ 459.4
========= ========= =========
Earnings Per Share
Diluted earnings per share:
Net Income $ 0.28 $ 0.52 $ 0.80
Purchased in-process
research and
development 0.09(1) 0.17(13) 0.27
Oak acquisition costs 0.16(2) 0.15
Provision for impairment
and restructuring
Impairment of equity
investment 0.13(3) 0.13
Non-operating gain (0.02)(4) (0.01)
Net income from
discontinued operations
Amortization of purchased
intangibles including
goodwill 0.04(8) 0.25(14) 0.29
--------- --------- ---------
Pro Forma Net Income $ 0.68 $ 0.94 $ 1.62
========= ========= =========
Shares used in computing
earnings per share:
Diluted earnings per share 277.3 290.7 282.7
========= ========= =========
Corning Incorporated and Subsidiary Companies
(In millions, except per share amounts)
Exhibit 3
1999
--------------------------------------
Q1 Q2 Q3 Q4 YTD
------- ------- ------- ------- ------
Net Income
Net Income $ 92.5 $131.0 $141.9 $150.4 $515.8
Purchased in-process
research and development
Oak acquisition costs
Provision for impairment
and restructuring 10.0(5) (8.6)(7) 1.4
Impairment of equity
investment
Non-operating gain (9.5)(6) (9.5)
Net income from
discontinued operations (4.8) (4.8)
Amortization of purchased
intangibles including
goodwill 5.4(9) 5.5(10) 5.7(11) 5.2(12) 21.8
------ ------ --- ----- -----
Pro Forma Net Income $ 97.9 $136.5 $148.1 $142.2 $524.7
====== ====== ====== ====== ======
Earnings Per Share
Diluted earnings per share:
Net Income $ 0.36 $ 0.50 $ 0.54 $ 0.57 $ 1.97
Purchased in-process
research and
development
Oak acquisition costs
Provision for impairment
and restructuring 0.04(5) (0.03)(7) 0.01
Impairment of equity
investment
Non-operating gain (0.04)(6) (0.04)
Net income from
discontinued operations (0.02) (0.02)
Amortization of purchased
intangibles including
goodwill 0.02(9) 0.02(10) 0.02(11) 0.02(12) 0.08
------ ------ ---- ---- ----
Pro Forma Net Income $ 0.38 $ 0.52 $ 0.56 $ 0.54 $ 2.00
====== ====== ====== ====== ======
Shares used in computing
earnings per share:
Diluted earnings
per share 260.4 265.3 265.7 266.6 265.1
====== ====== ====== ====== ======
(1) Reflects a non-operating charge of $42.0 million ($25.7 million after tax), or $0.09 per share. (2) Reflects a non-operating charge of $47.0 million ($43.4 million after tax), or $0.16 per share. (3) Reflects a non-operating charge of $39.0 million ($36.3 million after tax), or $0.13 per share. (4) Reflects a non-operating gain of $6.8 million ($4.2 million after tax), or $0.02 per share. (5) Reflects a non-operating charge of $15.5 million ($10.0 million after tax), or $0.04 per share. (6) Reflects a non-operating gain of $30.0 million ($9.5 million after tax and minority interest), or $0.04 per share. (7) Reflects a release of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). reserves totaling $14.1 million ($8.6 million after tax), or $0.03 per share. (8) Reflects the elimination of $13.1 million ($10.2 million after tax), or $0.04 per share of amortization. (9) Reflects the elimination of $6.9 million ($5.4 million after tax), or $0.02 per share of amortization. (10) Reflects the elimination of $7.0 million ($5.5 million after tax), or $0.02 per share of amortization. (11) Reflects the elimination of $7.3 million ($5.7 million after tax), or $0.02 per share of amortization. (12) Reflects the elimination of $6.6 million ($5.2 million after tax), or $0.02 per share of amortization. (13) Reflects a non-operating charge of $50.7 million ($50.7 million after tax), or $0.17 per share. (14) Reflects the elimination of $49.2 million ($71.2 million after tax), or $0.25 per share of amortization. |
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