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Wed, Feb. 3, 10:42 AM
Tue, Jan. 26, 9:40 AM
- Thanks to a weak yen and soft PC/TV sales, Corning's (GLW +1.4%) core Display Technologies segment saw revenue drop 21% Y/Y in Q4 (14% exc. forex) to $732M. Division net income fell 53% to $243M, and core earnings (excludes forex and forex hedges, among other things) 34% to $234M. As expected, glass volumes fell slightly Q/Q, and prices fell less Q/Q than in Q3.
- Segment performance: Optical Communications sales rose 9% Y/Y to $736M, and core earnings fell by $1M to $47M; strong data center fiber demand likely boosted sales. Environmental Technologies sales rose 2% to $254M; core earnings fell by $7M to $29M. Specialty Materials (includes Gorilla Glass) revenue fell 14% to $275M; core earnings rose by $14M to $44M.
- Display Technologies guidance: LCD glass volume is expected to drop by a mid-to-high single-digit % Q/Q in Q1, with lower factory utilization among panel makers (expected to lower supply chain inventories) weighing. For 2016, glass volume is expected to grow by a mid-single digit %, aided by a low-single digit increase in TV sales and an increase in average screen size of at least 1.5". Moderate Q/Q price declines are expected to occur in Q1 and the whole of 2016.
- Other guidance: Specialty Materials revenue is expected to drop by a mid-teen % Y/Y in Q1 (iPhone-related weakness could be weighing), but grow by a low-teen % in 2016 (the iPhone 7 launch should provide a lift). Optical Communications sales are expected to grow by a low-to-mid single digit % in Q1, and by a mid-single digit % in 2016. Environmental Technologies sales are expected drop by 10% in Q1 - weak North American heavy-duty truck sales are blamed - and by a low-single digit % in 2016.
- Financials: A $1.25B accelerated buyback (announced in October, as part of a $4B buyback authorization) was finished in January. Q4 gross margin fell 300 bps Y/Y on a reported basis to 38%, and 200 bps on a core performance basis to 42%. Adjusted SG&A spend fell by 3% Y/Y to $370M; adjusted R&D spend fell by less than 1% to $208M. Free cash flow was $628M in Q4, and $1.46B in 2015. Corning ended Q4 with $4.6B in cash/short-term investments, and $4.5B in debt.
- Corning's Q4 results, earnings release
Tue, Jan. 26, 7:29 AM
Mon, Jan. 25, 5:30 PM
Tue, Jan. 19, 8:46 AM
- Corning (NYSE:GLW) has announced a joint-venture with Saint-Gobain Sekurit to develop lightweight glazing solutions for automobiles.
- The JV will be equally owned by both parties, who will work to develop, manufacture, and sell the solutions.
- Last month, Corning announced a contract to produce windshields containing Gorilla Glass for the Ford GT, helping the car lower its weight by more than 12 pounds.
Dec. 17, 2015, 10:59 AM
- Believing European and Chinese macro pressures are weighing on LCD TV sales, JPMorgan's Rod Hall has downgraded Corning (GLW -2%) to Neutral, and cut his target by $2 to $18.
- Hall sees LCD TV shipments dropping 2% for the second straight year in 2016, after growing 7% in 2014. "By the end of next year, depending on the macro situation, we believe consumer demand for 4K TVs is likely to be strong. However, with China and Europe flagging and the U.S. not looking particularly strong either we suspect that investors can wait longer before deciding to own stocks exposed to 4K penetration growth."
- The downgrade comes less than a week after Corning rallied on news it's selling its 50% stake in the Dow Corning silicon products JV to Dow Chemical.
Dec. 15, 2015, 6:18 PM
- The latest version of the Ford GT supercar will be the first production vehicle to have a windshield that contains Corning's (NYSE:GLW) Gorilla Glass. The GT also uses Gorilla Glass for two other applications.
- Corning and Ford (NYSE:F) state the use of Gorilla Glass lowers the car's weight by more than 12 pounds. Pound-for-pound, Corning claims Gorilla Glass has over 5x the strength of standard window glass.
- With Ford pricing the GT at $400K and aiming to sell ~250 units/year, the design win is far from a high-volume one. However, it serves as a useful reference win for Corning, which has been pitching automakers for years on Gorilla Glass' ability (for a price) to make cars lighter, more fuel-efficient, more aerodynamic (lower center of gravity), and quieter inside.
Dec. 11, 2015, 9:16 AM
Dec. 11, 2015, 7:55 AM
- Separate from its merger news, Dow Chemcial (NYSE:DOW) says it will buy the remaining stake in its 50/50 joint venture with Corning (NYSE:GLW).
- Dow says the deal will help it capture $400M in annual cost savings from the restructured ownership, and expects to yield more than $1B in additional annual EBITDA at full run-rate synergies; it is expected to be accretive to operating EPS, cash flow from operations and free cash flow in the first full year after the close of the transaction, expected in H1 2016.
- GLW will exchange its 50% interest in Dow Corning for 100% of the stock of a newly formed entity that will become a wholly owned subsidiary, which will hold ~40% ownership in Hemlock Semiconductor Group and ~$4.8B in cash.
- DOW +0.8%, GLW +5.5% premarket.
Dec. 1, 2015, 1:55 PM
- Corning (GLW +0.1%) is creating a Gen 10.5 LCD substrate glass manufacturing facility in Hefei, China next to an LCD manufacturing plant owned by client BOE Technology. (PR)
- After factoring government/commercial incentives, Corning expects a net outlay of $460M - $290M in cash and $170M in currently-owned precious metals. Using Corning's glass, BOE plans to begin mass-producing LCDs for large-size TVs by Q3 2018.
- As part of the deal, Corning has struck a long-term supply agreement with BOE for Gen 10.5 substrate glass produced by its Hefei facility. BOE has also extended a supply agreement for substrate glass manufactured at Gen 8.5 sizes and below.
- Corning notes the market for large-size TVs is expected to see a 20%+ CAGR (no timeframe is given). The company is coming off a Q3 in which its Display Technologies (LCD glass) segment saw revenue drop 25% Y/Y (11% excluding the impact of a weak yen) to $757M due to soft TV and PC demand.
Oct. 29, 2015, 8:05 AM
- The company earlier this week promised more than $10B in buybacks and dividends through 2019, and begins to deliver, agreeing with Morgan Stanley to buy back $1.25B in stock.
- The initial delivery will be for about 53.1M shares based on the current price, with the accelerated deal expected to be completed in Q1 and financed with cash on hand.
- At current prices, $1.25B would be enough to buy back just over 5% of the float.
- GLW +0.8% in thin premarket action.
- Previously: Corning plans over $10B in dividends/buybacks; LCD decline weighs on Q3 (updated) (Oct. 27)
Oct. 27, 2015, 9:46 AM
- Corning (GLW +1%) uses its Q3 report to state it plans to return over $10B via dividends/buybacks through 2019. The efforts will lower Corning's cash balance to $2B, and lead to an adjusted debt-to-EBITDA ratio of 2. Corning had $5B in cash/equivalents and $4B in debt at the end of Q3.
- The buyback authorization has been hiked by $4B, and a $1.25B accelerated buyback is planned for Q4. Corning plans to hike its dividend (current yield of 2.7%) by at least 10% annually through 2019. $812M was spent on buybacks in Q3.
- The company also promises to invest ~$10B through 2019 in its product portfolio by concentrating its "RD&E investment, capital spending, and strategic M&A on a cohesive set of three core technologies, four manufacturing and engineering platforms, and five market-access platforms."
- The Display Technologies unit (LCD glass) weighed on Q3 sales: Its revenue fell 25% Y/Y (11% exc. a weak yen) to $757M, with segment net income falling 34% to $255M. Glass volumes fell slightly Q/Q (worse than guidance for a low-single digit % increase), and price declines were moderate. CFO Tony Tripeny: "The weakening global economy, particularly in China, and the stronger U.S. dollar impacted all of our businesses,"
- Optical Communications (fiber) was healthier, with sales rising 7% to $747M and net income rising 3% to $70M. Specialty Materials (Gorilla Glass) revenue fell 12% to $288M, but net income rose 7% to $46M. Environment Technologies revenue fell 9% to $257M, and net income 33% to $38M. Life Sciences revenue fell 1% to $211M, and net income 5% to $18M.
- Guidance: LCD glass volumes are expected to drop slightly Q/Q in Q4, and price declines are expected to be smaller than in Q3. Optical Communications revenue is expected to rise by a low-to-mid single-digit % Y/Y. Specialty Materials is expected to decline by a low-teens % Y/Y. Environmental Technologies and Life Sciences are both expected to decline by a mid-single digit % Y/Y. Dow Corning core equity earnings are expected to total $80M.
- Q3 results, PR
- Update (10:10AM ET): Corning is now up 4.4%.
Oct. 27, 2015, 7:02 AM
- Corning (NYSE:GLW): Q3 EPS of $0.34 misses by $0.01.
- Revenue of $2.45B (-5.0% Y/Y) misses by $70M.
Oct. 26, 2015, 5:30 PM
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Oct. 22, 2015, 2:09 PM
- During its Q3 earnings call, Dow Chemical (DOW +3.6%) stated it might buy Corning's (NYSE:GLW) stake in the companies' Dow Corning silicon product JV, as part of a broader effort to restructure its JV interests.
- Dow added talks have already been held with Corning. The company disclosed last year Corning wanted out of the JV, following its 2013 deal to buy Samsung's stake in an LCD glass JV.
- Dow Corning's sales fell 5% Y/Y in Q2 to $1.42B, thanks to a strong dollar and weak polysilicon sales to solar manufacturers. Adjusted net income nonetheless rose 27% to $127M, aided by strong demand within the JV's high-margin silicones business.
- Earlier: Dow jumps on Q3 EPS beat, accelrated buyback, restructuring efforts
Sep. 16, 2015, 11:50 AM| Sep. 16, 2015, 11:50 AM | 9 Comments
Corning Inc is engaged in manufacturing of specialty glass and ceramics. The Company's segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.
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