Tue, Oct. 27, 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%.
Tue, Oct. 27, 7:02 AM
Mon, Oct. 26, 5:30 PM
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Tue, Jul. 28, 9:49 AM
- Corning (GLW -1.6%) spent $616M on buybacks in Q2. That helped EPS slightly beat estimates in spite of a small revenue miss. Also helping: Core gross margin rose 100 bps Y/Y to 45% (GAAP GM was flat at 42%), and R&D spend fell 8% to $191M. SG&A spend rose 5% to $337M.
- Display Technologies (LCD glass): Sales fell 20% Y/Y to $789M, thanks in large part to a $174M forex hit from a weak yen. Net income nonetheless rose 7% to $303M. Glass volume rose by a low-single digit % Q/Q, and glass prices fell "moderately," in-line with expectations. Glass volume is expected to rise by a low-single digit % in Q3; price declines are expected to remain moderate. However, Corning has cut its forecast for global 2015 LCD glass growth to 6%-7%; weak PC, tablet, and European/Latin TV sales are cited.
- Optical Communications (fiber): Sales rose 17% to $800M, and net income 26% to $77M. Corning is hiking its full-year outlook for the segment, citing strong fiber-to-the-home (FTTH) and data center demand - it expects mid-teens Y/Y growth in both Q3 and 2015.
- Specialty Materials (Gorilla Glass): Sales fell 9% to $272M, while net income rose 13% to $44M. Advanced optics product sales fell, while Gorilla Glass volumes rose at a mid-teens clip. Gorilla Glass volume (likely boosted by iPhone 6S orders) is expected to rise by a high-single digit % Q/Q in Q3.
- Environmental Technologies: Sales fell 9% to $260M, and net income 2% to $46M. Sales are expected to be down slightly Y/Y in Q3 due to forex.
- Life Sciences: Sales fell 5% to $211M, and net income was flat at $18M. Sales are expected to drop slightly Y/Y due to forex.
- Corning ended Q2 with $5.47B in cash/short-term investments, and $4.01B in long-term debt.
- Q2 results, PR
Tue, Jul. 28, 7:17 AM
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Wed, Apr. 29, 10:01 AM
- CLSA has downgraded Corning (GLW -3.1%) to Sell from Underperform a day after the company posted mixed Q1 results. The firm thinks LCD TV glass comps will be tougher in 2H15 - the division's revenue fell 13% Y/Y in Q1 thanks to a weak yen - and that high inventories and lower forex hedging gains will also act as headwinds.
- Meanwhile, the company's Dow Corning JV with Dow Chemical (DOW -0.6%) has posted its Q1 results: Revenue fell 11% Y/Y to $1.36B, and adjusted net income 8% to $101M.
- Weak sales of polysilicon (used in solar cell/module production) weighed on Dow Corning's results - the company blames "the timing of customers taking product under long-term contracts." Its silicones business "experienced volume growth in several of its highly specialized product lines, especially for materials sold in construction, healthcare and packaging applications," but also saw a 4.7% revenue growth impact from a strong dollar.
- The JV is less than 5 months removed from announcing it's shutting down a Clarksville, TN polysilicon plant, and taking a related $1.5B-$1.6B charge. On its CC (transcript), Corning stated it expects its share of Dow Corning's earnings will rise to $60M in Q2 (implies total adjusted net income of $120M) from $51M in Q1; silicones sales are expected to be flat Y/Y, and polysilicon sales lower.
Tue, Apr. 28, 9:54 AM
- Corning (GLW -1.2%) had a Q1 gross margin of 41%, up 20 bps Y/Y and better than expected in light of strong forex pressures. That, along with $500M in buybacks, help EPS beat estimates in spite of a revenue miss. A weak yen respectively had $165M and $137M impacts on Q1 sales and gross profits.
- The Optical Communications (fiber) division was a Q1 standout: Sales rose 18% Y/Y to $697M (guidance was for 10%+ growth). Strong North American fiber-to-the-home spending contributed, as did the purchase of fiber/copper interconnect maker TR Manufacturing. Mid-teen growth is expected for the division in Q2; the Samsung fiber division purchase will provide a lift.
- Display Technologies (LCD glass) revenue fell 13% Y/Y to $808M thanks to the yen's weakness; if not for forex, revenue would've risen 1% to $972M. LCD glass volumes rose by a high-teen % Y/Y, price declines (as expected) were moderate, and margins improved. Volumes are expected to fall be a low-single digit % Q/Q in Q2, with price declines even smaller than Q1's.
- Specialty Materials sales rose 4% Y/Y to $272M, thanks to a 20% increase in Gorilla Glass volume - the Galaxy S6 and its dual Gorilla Glass 4 panels helped. Sales are expected to drop by a mid-single digit % Y/Y in Q1, with advanced optics weakness offsetting Gorilla Glass growth. GG4 demand is expected to continue rising in 2H15.
- Environmental Technologies (emissions control) sales rose 3% to $282M. They're expected to fall by a mid-single digit % in Q2 due to a weak euro. Life Sciences sales fell 6% to $197M, and are expected to be down slightly in Q2.
- Q1 results, PR
Tue, Apr. 28, 7:16 AM
Mon, Apr. 27, 5:30 PM
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Tue, Jan. 27, 10:54 AM
- Following a strong Q4 highlighted by a December guidance hike, Corning (GLW +1.7%) expects LCD glass demand to be down slightly Q/Q in Q1, in-line with seasonality. Price declines are again expected to be moderate.
- Thanks to the Samsung deal and better-than-expected demand (lifted by enthusiasm for 4K TVs and larger sets), Corning's Display Technologies sales rose 69% Y/Y in Q4 to $1.1B. The segment's core earnings rose 26%.
- North American fiber-to-the-home buildouts fueled a 12% increase in Optical Communications sales to $676M, beating guidance for mid-single digit growth and contributing to the revenue beat. 10%+ growth is also expected in Q1.
- Specialty Materials sales (Gorilla Glass-driven) rose 12% to $319M, also better than expected. Corning reports seeing "strong consumer and manufacturer interest" in just-launched Gorilla Glass 4. ~10% Q1 growth is expected for the division.
- Environmental Technologies sales +5% to $238M, driven by demand for light and heavy-duty emissions products. Life Sciences sales +2% to $215M. Both divisions are expected to see roughly flat Y/Y sales in Q1.
- Gross margin rose to 41.4% from 39.3% a year earlier. Adjusting for one-time events, SG&A spend rose 22% to $380M, and R&D spend 24% to $209M. $183M was spent on buybacks.
- A weak yen lowered revenue by $198M. Corning plans to spend $1.3B-$1.4B in 2015 on capex, up from 2014's $1.1B.
- Shares are higher in spite of a 1.7% drop for the S&P.
- Q4 results, PR
Tue, Jan. 27, 7:25 AM
Mon, Jan. 26, 5:30 PM
Dec. 9, 2014, 10:16 AM
- In a PR issued ahead of a Barclays conference presentation, Corning (NYSE:GLW) says it now expects global LCD glass demand to rise by a low-single digit % Q/Q in Q4, better than prior guidance for a slight decline. Corning forecasts its glass growth to be in-line with market growth.
- Also, Q4 price declines are expected to be "even more moderate than anticipated at the beginning of the quarter.," and Corning expects 2015 price declines to smaller than 2014's due to strong LCD TV demand, a weak yen, and tightening supplies. Demand for both larger sets and 4K TVs is giving the industry a boost.
- Also: Corning says Samsung is using recently-launched Gorilla Glass 4 (offers improved damage resistance) in its high-end Galaxy Alpha phone.
- LCD driver IC vendor Himax (HIMX +2.1%) is following Corning higher on a morning the Nasdaq is down 1.1%. Large-panel drivers accounted for 28% of Himax's Q3 sales.
Oct. 28, 2014, 10:07 AM
- Corning (GLW +1.2%) is guiding for Specialty Materials core sales (includes Gorilla Glass) to "decrease sequentially by a low-to-mid teen digit percentage, reflecting the absence of new product launches that occurred in the third quarter."
- While the iPhone 6 is believed to use Gorilla Glass, soft tablet sales have weighed on Specialty Materials' performance. On the other hand, auto industry interest in Gorilla Glass (for solutions that can lower weight) is growing.
- LCD glass volume is expected to be flat to down slightly Q/Q, and LCD price declines more moderate. Full-year global retail glass demand is forecast to be up 10%, and demand for 4K TVs and larger sets is expected to boost 2015 sales.
- Optical Communications is expected to grow by a mid-single digit % Y/Y, and Environmental Technologies to grow by a high-single digit %. Life Sciences is expected to be flat.
- Q3 segment performance: Display Technologies sales (boosted by the Samsung deal) +62% Y/Y to $689M; Optical +7% to $650M; Environmental +25% to $282M (diesel emissions product demand); Specialty Materials +0.3% to $327M; Life Sciences -0.5% to $214M.
- Gross margin was 42.9%, +130 bps Q/Q and -70 bps Y/Y. SG&A spend -3% to $256M, R&D +8% to $199M. $200M was spent to repurchase 9.6M shares.
- Shares opened lower, but have quickly moved higher.
- Q3 results, PR
Oct. 28, 2014, 7:18 AM
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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