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CORNING REPORTS 1991 RECORD INCOME; FOURTH QUARTER ALSO A RECORD

CORNING REPORTS 1991 RECORD INCOME; FOURTH QUARTER ALSO A RECORD
 CORNING, N.Y., Jan. 20 /PRNewswire/ -- Corning Incorporated (NYSE: GLW) reported today that its 1991 net income totaled a record $316.8 million, or $1.69 per share, a 9 percent increase over 1990 net income of $292 million, or $1.55 per share. Fourth-quarter net income, also a record, amounted to $85.6 million, or $0.45 per share, compared with $74.3 million, or $0.40 per share reported for 1990. Per-share amounts have been adjusted to reflect a 2-for-1 common stock split effective Jan. 13, 1992.
 Results were impacted in both years by several one-time events. Excluding these events from both years, 1991 earnings performance was even more positive -- up 18 percent to $310.4 million, or $1.65 per share. The impact of one-time events was not material to fourth-quarter results.
 "I am especially pleased with this seventh consecutive year of record performance," said Board Chairman James R. Houghton. "The record was achieved despite weak economies in many parts of the world."
 Sales for 1991 totaled $3.3 billion, up 11 percent over 1990. Fourth-quarter sales, at $826 million, were up 7 percent compared with 1990.
 Houghton said, "The improved results were led by sales gains in the laboratory services segment, driven by MetPath Inc.'s clinical- laboratory testing business, and in the communications segment from worldwide optical fiber and cable businesses and the liquid-crystal- display glass business."
 The specialty-materials segment was adversely affected by worldwide economic conditions, but the ceramic-substance business continued to show gains in preparation for new European automotive emission standards.
 For the full year, worldwide consumer-products business volume improved, despite the continued uncertainty of retail markets. However, consumer-products profitability declined compared with 1990. The decline was due primarily to the impact of turbulent economic conditions on Corning's Brazilian operations, which had a strong performance in 1990.
 Corning's equity in earnings of associated companies totaled $112 million, up 4 percent from 1990. The gain was due to strong improvement from Samsung-Corning Company Ltd. in Korea and from continued excellent results from overseas optical-fiber equity companies. These gains more than offset an $8.2 million reduction in equity earnings reflecting Corning's share of a previously announced fourth-quarter charge by Dow Corning Corporation for costs anticipated as a result of the suspension of its breast-implant business. Excluding this charge, Dow Corning's earnings were essentially flat on a year-to-year comparison.
 Houghton said, "Although economic conditions throughout the world remain unsettled, I am optimistic 1992 will be another year of improved performance for the company."
 CORNING INCORPORATED AND SUBSIDIARY COMPANIES
 Consolidated Statement of Income
 (In millions, except per-share amounts -- Unaudited)
 Year ended Twelve weeks ended
 12/29/91 12/30/90 12/29/91 12/30/90
 Revenues
 Net sales $3,259.2 $2,940.5 $ 826.3 $772.8
 Royalty, interest &
 dividend income 27.6 39.9 6.8 9.2
 Non-operating gains 8.1 69.2 8.5 0.0
 3,294.9 3,049.6 841.6 782.0
 Deductions
 Cost of sales 2,121.6 1,925.7 536.4 497.7
 S,G&A expenses 622.5 581.8 159.9 158.7
 R&D expenses 130.7 124.5 30.9 30.8
 Interest expense 58.1 54.0 13.3 12.7
 Other, net 34.6 35.5 15.7 18.4
 Income before taxes
 on income 327.4 328.1 85.4 63.7
 Taxes on income 110.6 136.1 24.0 21.6
 Income before minority
 interest and equity
 earnings 216.8 192.0 61.4 42.1
 Minority interest
 in earnings of
 subsidiaries (17.3) (10.4) (3.7) (1.0)
 Equity in earnings
 of associated companies 111.7 107.5 27.9 30.9
 Income before
 extraordinary credit 311.2 289.1 85.6 72.0
 Tax benefit of loss
 carryforwards 5.6 2.9 0.0 2.3
 Net income 316.8 292.0 85.6 74.3
 Earnings per common share:
 Income before
 extraord. credit $1.66 $1.53 $0.45 $0.39
 Tax benefit of loss
 carryforwards 0.03 0.02 0.00 0.01
 Net income 1.69 1.55 0.45 0.40
 Per-share amounts have been adjusted to reflect the 2-for-1 stock split effective Jan. 13, 1992. The accompanying notes are an integral part of these statements.
 Condensed Consolidated Balance Sheets
 (In millions)
 12/29/91 12/30/90
 Assets
 Current assets
 Cash and short-term investments $207.6 $133.0
 Receivables, net 582.8 527.2
 Inventories 315.7 314.5
 Deferred taxes on income and
 other current assets 123.3 123.2
 Total current assets 1,229.4 1,097.9
 Investments 931.5 804.5
 Plant and equipment, net 1,429.6 1,351.8
 Other assets 262.1 257.8
 3,852.6 3,512.0
 Liabilities and Stockholders' Equity
 Current liabilities
 Loans payable $ 85.3 $ 52.8
 Accounts payable 203.0 191.5
 Other accrued liabilities 420.1 395.2
 Total current liabilities 708.4 639.5
 Other liabilities 209.4 205.9
 Loans payable beyond one year 700.0 611.2
 Deferred taxes on income 73.0 72.8
 Minority interest in subsidiary cos. 115.1 101.6
 Convertible preferred stock 27.9 30.7
 Common stockholders' equity 2,018.8 1,850.3
 3,852.6 3,512.0
 The accompanying notes are an integral part of these statements.
 Notes To Consolidated Financial Statements
 (1) Earnings per common share are computed by dividing net income less dividends on preferred stock by the weighted average number of common shares outstanding during the period. The weighted average shares outstanding (in thousands) for the fourth quarter were 188,839 and 184,466 for 1991 and 1990, respectively, and 186,472 and 186,902 for the fiscal years 1991 and 1990, respectively. Preferred dividends of $0.6 million were declared during the fourth quarters of both 1991 and 1990 and $2.4 million and $2.5 million were declared during fiscal years 1991 and 1990, respectively. Share and per-share amounts have been adjusted to reflect a 2-for-1 common stock split effective Jan. 13, 1992.
 (2) Depreciation and amortization charged to operations for fiscal years 1991 and 1990 amounted to $231.3 million and $214.8 million, respectively.
 (3) In the fourth quarter 1991, Corning increased its quarterly dividend to $.15 per share and declared a special dividend of $.15 per share. These dividends were paid on Dec. 31, 1991.
 Non-operating gains and losses
 (4) During the fourth quarter 1991, Corning recognized non-operating gains from consolidated operations totalling $8.5 million ($8.3 million after-tax) which included a gain of $5.3 million (before-tax and after- tax) on the sale of a less than 10 percent interest in Corning Japan K.K. Excluding these transactions, the company's fourth quarter effective tax rate would have been 31 percent. Corning also recognized an $8.2 million reduction in equity earnings to reflect Corning's share of a charge recorded by Dow Corning Corporation for costs anticipated as a result of the suspension of its breast-implant business. In the fourth quarter 1990, no one-time events occurred.
 (5) In 1991, Corning recognized net non-operating gains totalling $8.1 million ($14.6 million after-tax) from consolidated operations and the $8.2 million reduction in equity earnings reflecting Dow Corning's charge. In 1990, Corning recognized non-operating gains totalling $69.2 million ($29.2 million after-tax) on the sales of certain investments, including a gain on the sale of substantially all the company's investment in Iwaki Glass Company, Ltd. totalling $51.1 million ($19.4 after-tax). Excluding these transactions, the company's effective tax rate would have been 37 percent for 1990 and 1991.
 -0- 1/20/92
 /CONTACT: Kathryn C. Littleton of Corning, 607-974-8206/
 (GLW) CO: Corning Incorporated ST: New York IN: SU: ERN


SM-OS -- NY010 -- 1348 01/20/92 10:23 EST
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