Summary
Corning Inc. (GLW) reported a strong recovery in its 2010 fiscal year, with net sales increasing by 23% to $6.63 billion, driven by robust demand across all segments, particularly in Display Technologies and Specialty Materials. The company demonstrated significant financial health, with operating cash flow of $3.8 billion and ending the year with over $6.3 billion in cash and short-term investments. Profitability improved substantially, with net income rising to $3.6 billion, benefiting from strong performance in its equity affiliates, particularly Samsung Corning Precision and Dow Corning, as well as a significant tax benefit related to foreign tax credits. Corning continued to invest strategically in its future, with capital expenditures of $1.0 billion, focusing on expanding capacity for LCD glass substrates in China and increasing production for Corning Gorilla glass. The company also highlighted its commitment to innovation, with increased R&D spending to support its core businesses and emerging opportunities. Looking ahead to 2011, Corning projected significant sales growth, especially in its Specialty Materials segment due to strong demand for Gorilla glass, and an increase in the overall LCD glass market. Despite expected headwinds from higher taxes and potential fluctuations in equity affiliate dividends, Corning remains confident in its strategy of growth through innovation and financial stability.
Financial Highlights
54 data points| Revenue | $6.63B |
| Cost of Revenue | $3.58B |
| Gross Profit | $3.05B |
| R&D Expenses | $491.00M |
| SG&A Expenses | $1.01B |
| Operating Income | $1.80B |
| Net Income | $3.56B |
| EPS (Basic) | $2.28 |
| EPS (Diluted) | $2.25 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Net sales increased 23% year-over-year to $6.63 billion in 2010, driven by broad-based segment growth.
- 2Display Technologies segment saw a 24% increase in net sales, fueled by strong demand for LCD glass, especially for televisions.
- 3Specialty Materials segment experienced significant growth with a 75% sales increase, largely due to high demand for Corning Gorilla glass.
- 4Corning's financial position remained strong, with operating cash flow of $3.8 billion and cash reserves exceeding $6.3 billion at year-end.
- 5Net income attributable to Corning Incorporated more than doubled to $3.56 billion from $2.01 billion in the prior year.
- 6Significant investments were made in future growth, including a new LCD glass substrate facility in China and capacity expansion for Gorilla glass.
- 7The company anticipates substantial sales growth in 2011, primarily driven by the Specialty Materials segment.