Corning Reduces 2001 Pro Forma Earnings Guidance; Company Maintains First Quarter Estimates; Photonic Technologies Revenues Reduced.Business Editors CORNING, N.Y.--(BUSINESS WIRE)--March 19, 2001 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) ), a worldwide leader in optical communications Optical communications The transmission of speech, data, video, and other information by means of the visible and the infrared portion of the electromagnetic spectrum. technologies, today said it has reduced its outlook for 2001 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. from previously stated guidance of $1.40 to $1.43 per share to $1.20 to $1.30 per share. This compares to 2000 pro forma earnings of $1.23 per share. Corning now expects 2001 revenues in the range of $8.2 billion to $8.5 billion, up 15% to 20% over 2000 revenues of $7.1 billion. This revision of the company's guidance for the full year is based primarily on lower expectations for the telecommunications segment amid the current economic slowdown. Corning said it has not changed its first quarter pro forma earnings guidance of $0.28 to $0.31 per share, which compares to $0.23 per share for the first quarter of last year. "Our new outlook is based on recent customer feedback which indicates that a meaningful recovery of spending by our telecommunications customers will occur much more slowly than we had previously anticipated," John W. Loose, Corning's president and chief executive officer, said. Loose stated that Corning's 2001 revenues from photonic technologies are now expected to grow 20% to 25%, significantly lower than the company's previously stated expectations for 50% growth. The principal customers in this business continue to reduce inventories and Corning does not expect this market to improve until well into the second half of the year. "We are moving aggressively to implement more stringent cost control plans and we are reviewing the need for additional workforce reductions," Loose said. "Corning continues to be sold out of optical fiber manufacturing capacity. We are reallocating optical fiber volume to customers we previously have been unable to supply, broadening our international fiber customer base. However, Corning's expected demand for its premium fiber products, as a percentage of total fiber demand, is now lower than previously anticipated, but still expected to be equal to last year's record level," he said. Today, at the Optical Fiber Communications Conference (OFC OFC Office OFC Officer OFC Of Course OFC Oxygen Free Copper OFC Oceania Football Confederation (soccer) OFC Optical Fiber Cable OFC Optical Fiber Communications OFC Optical Fiber Conference ) in Anaheim, CA., Corning will announce it expects worldwide fiber market growth to be 20% this year and that Corning's growth in fiber volume will be in line with the market expectations. Corning will also announce at OFC that it expects the worldwide photonic components market to grow between 10% and 30% in 2001. "Although we are currently facing limited visibility in the near term in the telecommunications segment, we remain very optimistic about long-term bandwidth demand, and the resulting growth in our optical communications products," Loose said. About Corning 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 industry; and high-performance 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 2000 were $7.1 billion. Forward-Looking Cautionary Statements Except for historical information and discussions contained herein, statements included in this release constitute "forward-looking statements" 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 statement involve a number of risks, uncertainties and other factors that could cause results to differ materially, as discussed in the company's filing with the Securities and Exchange Commission. Pro Forma Statement Pro forma statement A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows. 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 excludes amortization of purchased intangibles and goodwill, purchased in-process research and development, one-time 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. Webcast Information for OFC Briefing To listen to a live audio webcast of Corning's business briefing at the Optical Fiber Communications Conference from Anaheim, CA., go to http://www.corning.com/investor_relations/ and follow the instructions. The webcast will be archived on the www.corning.com site for 30 days following the call. |
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