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Corning Annual Report (Amendment), Year Ended Dec 31, 1997

Filing Date
Filed July 8, 1998
Period End
December 31, 1997
Security
GLW
In the record · 2016–202610-K1110-Q338-K111

GLW filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 111 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’16Jul ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K/A filed July 8, 1998. Cited figures are marked; the original filing is the authoritative source.

This is Amendment No. 1 (Form 10-K/A) to Corning Incorporated's annual report for fiscal 1997, filed July 1998.

It does not restate the full annual report; it substitutes Item 14 and Exhibit 27 to reflect the April 1, 1998 recapitalization and sale of a controlling interest in the consumer housewares business, which is now presented as a discontinued operation. Reported 1997 results: net sales of $3,516.8 milliona (revenues $3,554.3 million including royalty and other income), up about 16% from $3,024.0 million in 1996. Income from continuing operations was $408.9 million, or $1.72 diluted EPS, versus $1.40 in 1996, and net income was $439.8 million ($1.85 diluted EPS) after $30.9 million of discontinued operations income.

Growth was driven by the Communications segment (revenues $2,465.9 millionb, pre-tax income $684.3 million), while Specialty Materials grew more modestly. The balance sheet grew considerably, with total assets of $4,691.9 million (from $4,183.4 million) largely due to plant and equipment rising to $2,267.9 million from heavy capital spending of $745.6 million. Total debt rose: short-term loans payable reached $213.0 million and long-term loans were $1,125.8 million.

Stockholders' equity rose to $1,246.5 millionc from $961.1 million, helped by the 1997 earnings. Operating cash flow from continuing operations was $654.1 million, which covered capex but left a funding gap that was bridged with borrowings.

Key risk items for investors include the Dow Corning equity investment, which Corning has fully reserved since 1995 and continues to carry at zero while Dow Corning remains in Chapter 11 over breast implant litigation, and the uncertain resolution of that proceeding. Corning's accounting for the 1998 housewares sale also means prior-period comparisons are restated on a continuing-operations basis.

02—Key points

Key Highlights

  1. Net sales rose about 16% to $3,516.8 million in 1997, and total revenues reached $3,554.3 million.
  2. Income from continuing operations was $408.9 million ($1.72 diluted EPS), up from $323.3 million ($1.40) in 1996; net income was $439.8 million ($1.85 diluted EPS).
  3. Communications segment was the main earnings driver, with $2,465.9 million in revenue and $684.3 million in pre-tax income.
  4. Capital expenditures surged to $745.6 million (vs. $560.2 million in 1996), reflecting heavy investment in plant and equipment and pushing net plant to $2,267.9 million.
  5. Consumer housewares business was sold in an April 1, 1998 recapitalization for $583 million in cash, with Corning retaining an 8% interest and up to $15 million in potential additional payments, and is reported as discontinued operations.
  6. Dow Corning, a 50%-owned silicone affiliate in Chapter 11 over breast implant litigation, remains fully reserved with no equity income recognized; the company states it cannot predict when Dow Corning will emerge.
  7. Total debt increased, with short-term loans payable of $213.0 million and long-term loans of $1,125.8 million, while stockholders' equity increased to $1,246.5 million from $961.1 million.

03—Questions

Frequently Asked Questions

  1. Why was this 10-K/A filed, and does it replace the full annual report?

    The amendment substitutes only Item 14 and Exhibit 27 (Financial Data Schedule) of the original 1997 Form 10-K to reflect the April 1998 divestiture of the consumer housewares business as a discontinued operation. It is a partial filing, not a complete restatement of the annual report.

  2. How much did Corning's earnings grow in 1997?

    Income from continuing operations rose to $408.9 million ($1.72 diluted EPS) from $323.3 million ($1.40) in 1996, roughly a 26% increase in earnings and 23% in diluted EPS. Net income of $439.8 million ($1.85 diluted EPS) also benefited from $30.9 million in discontinued operations income.

  3. What is the risk from Corning's investment in Dow Corning?

    Corning owns 50% of Dow Corning, which filed for Chapter 11 in May 1995 due to breast implant litigation. Corning fully reserved this investment in 1995 ($365.5 million after-tax charge) and no longer recognizes equity earnings. Dow Corning's Second Amended Plan was filed in February 1998, but Corning says it is impossible to predict if or when Dow Corning will emerge, so any resolution could affect Corning's results and financial position.

  4. How is Corning funding its large capital spending program?

    Operating cash flow from continuing operations of $654.1 million did not fully cover capital expenditures of $745.6 million. The gap was funded by increased borrowings (short-term loans rose to $213.0 million from $53.5 million, and long-term loans to $1,125.8 million from $1,195.1 million in total debt terms), and by proceeds from stock issuances and other sources.

04—Continue

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