Summary
Corning Incorporated's 2011 Form 10-K highlights a year of significant sales growth driven by its Telecommunications and Specialty Materials segments, with Gorilla Glass showing particularly strong demand. Despite overall revenue increases, net income saw a decrease compared to 2010, primarily due to lower equity earnings from key affiliates like Samsung Corning Precision and Dow Corning, and an impairment charge for large cover glass assets in Japan. The company continued to focus on financial health, maintaining a strong cash position, increasing its dividend, and executing a share repurchase program. Corning's diversified business model spans five reportable segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences. While Display Technologies experienced pricing pressure and excess capacity, other segments demonstrated resilience and growth. The company's outlook for 2012 anticipates continued growth, particularly in Telecommunications and Environmental Technologies, though tempered by expected price declines in the Display segment and potential global economic uncertainties.
Financial Highlights
54 data points| Revenue | $7.89B |
| Cost of Revenue | $4.31B |
| Gross Profit | $3.58B |
| R&D Expenses | $561.00M |
| SG&A Expenses | $1.03B |
| Operating Income | $1.71B |
| Net Income | $2.82B |
| EPS (Basic) | $1.80 |
| EPS (Diluted) | $1.78 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Strong sales growth of 19% in 2011, reaching $7.89 billion, primarily driven by the Specialty Materials (Gorilla Glass) and Telecommunications segments.
- 2Net income declined by 21% to $2.8 billion in 2011 compared to $3.6 billion in 2010, largely due to reduced equity earnings from affiliates and a $130 million impairment charge.
- 3Maintained a robust financial position with over $5.8 billion in cash and short-term investments as of December 31, 2011.
- 4Increased quarterly common stock dividend by 50%, from $0.05 to $0.075 per share, demonstrating confidence in future cash flows.
- 5Announced and began executing a share repurchase program, buying back 55 million shares for $780 million in Q4 2011.
- 6Addressing excess capacity in Display Technologies and Specialty Materials segments by reducing worldwide glass capacity by approximately 25%.
- 7Significant capital expenditures of $2.4 billion in 2011, focused on expanding manufacturing capacity in key segments like Display Technologies and Specialty Materials.