Summary
Corning Incorporated (GLW) filed its 2013 10-K on February 9, 2014, detailing its performance across five key segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. The company demonstrated resilience with stable net sales compared to the previous year, while achieving a notable 20% increase in net income, driven by strong hedging program gains, improved equity earnings from Dow Corning, and solid performance in several operational segments. A significant strategic move during the period was the acquisition of full ownership of Samsung Corning Precision Materials, which is expected to provide greater operational flexibility and strengthen Corning's position in the Display Technologies market. The company also continued its commitment to innovation and financial health, with substantial investments in research and development and a solid cash flow position. The outlook for 2014 was positive, with anticipated growth across most segments, despite potential headwinds from foreign exchange rates and lower equity earnings from Dow Corning.
Financial Highlights
54 data points| Revenue | $7.82B |
| Cost of Revenue | $4.50B |
| Gross Profit | $3.32B |
| R&D Expenses | $613.00M |
| SG&A Expenses | $1.13B |
| Operating Income | $1.37B |
| Net Income | $1.96B |
| EPS (Basic) | $1.35 |
| EPS (Diluted) | $1.34 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.46B |
Key Highlights
- 1Corning reported stable net sales of $7.82 billion in 2013, with net income increasing by 20% to $1.96 billion compared to 2012, largely due to favorable hedging gains and improved equity earnings from affiliates.
- 2The Display Technologies segment experienced a sales decline of 13% in reported terms due to price reductions and foreign currency depreciation, but core sales saw a 7% increase driven by volume growth.
- 3The Optical Communications segment demonstrated strong growth, with net sales increasing by 9% to $2.33 billion, supported by increased demand for carrier network products, particularly in North America, China, and Europe.
- 4Specialty Materials segment net sales decreased by 13% to $1.17 billion, primarily due to a 17% decline in Corning Gorilla Glass sales, although cost controls helped maintain profitability.
- 5Corning made significant progress on its strategic priority of securing full ownership of Samsung Corning Precision Materials, with the transaction closing in January 2014, integrating it fully into the Display Technologies segment.
- 6The company maintained a strong financial position, ending the year with $5.2 billion in cash, cash equivalents, and short-term investments, while also returning capital to shareholders through increased dividends and share repurchases.
- 7A significant legal proceeding involved the Amended PCC Plan of Reorganization related to asbestos litigation, requiring Corning to contribute $290 million in payments over several years.