10-KPeriod: FY2020

CORNING INC /NY Annual Report, Year Ended Dec 31, 2020

Filed February 12, 2021For Securities:GLW

Summary

Corning Incorporated (GLW) reported full-year 2020 net sales of $11.3 billion, a slight decrease of 2% compared to 2019, impacted by the COVID-19 pandemic and related economic uncertainties. Despite revenue challenges, the company focused on preserving financial health, protecting employees and communities, and delivering on customer commitments. Strategic investments in core technologies and manufacturing platforms continue under their 2020-2023 Growth Framework, aiming to drive future growth and shareholder returns. Key segments like Optical Communications and Environmental Technologies experienced sales declines due to market weakness and production shutdowns, respectively. However, the Specialty Materials segment showed significant growth, driven by strong demand for premium cover materials and IT-related products. The company also saw a substantial increase in its "All Other" segment, largely due to the consolidation of Hemlock Semiconductor Group (HSG). Corning demonstrated resilience by adapting to market conditions and advancing major innovations, positioning itself for recovery and growth in 2021.

Financial Highlights

54 data points
Beta

Revenue

$11.30B

31.2% Gross Margin

Net Income

$512.00M

4.5% Net Margin

EPS (Diluted)

$0.54

Total Assets

$30.77B

Cash & Equivalents

$2.67B

Free Cash Flow

$2.18B

Financial Statements
Beta
Revenue$11.30B
Cost of Revenue$7.77B
Gross Profit$3.53B
R&D Expenses$1.00B
SG&A Expenses$1.75B
Operating Income$509.00M
Net Income$512.00M
EPS (Basic)$0.54
EPS (Diluted)$0.54
Shares Outstanding (Basic)761.00M
Shares Outstanding (Diluted)772.00M

Key Highlights

  • 1Net sales for 2020 were $11.3 billion, a 2% decrease from 2019, attributed to pandemic-related impacts and segment-specific challenges.
  • 2Specialty Materials segment experienced strong 18% year-over-year sales growth, driven by demand for cover materials and IT products.
  • 3Optical Communications segment sales decreased by 12%, reflecting general market weakness and customer capital spending reductions.
  • 4The company continued to invest in its 2020-2023 Strategy & Growth Framework, focusing on core technologies and market-access platforms.
  • 5Corning generated $2.18 billion in net cash from operating activities, demonstrating solid cash flow generation.
  • 6The company declared a 9% increase in its quarterly common stock dividend in February 2021, marking the tenth increase since October 2011.
  • 7Acquisition of a controlling interest in Hemlock Semiconductor Group (HSG) in Q3 2020 significantly boosted the "All Other" segment's sales.

Frequently Asked Questions

Corning's 2020 financial performance was primarily influenced by the COVID-19 pandemic, which impacted global economic conditions and supply chains. While some segments like Optical Communications and Environmental Technologies saw declines due to market weakness and operational disruptions, the Specialty Materials segment exhibited strong growth. The company also benefited from the consolidation of Hemlock Semiconductor Group (HSG) in the 'All Other' segment.

The Display Technologies segment saw a 3% sales decrease. Optical Communications experienced a 12% sales decline. Environmental Technologies sales decreased by 9%, and Life Sciences saw a 2% dip. In contrast, Specialty Materials grew sales by 18%, and the 'All Other' segment more than doubled its sales due to the HSG consolidation.

Corning's growth strategy, outlined in its 2020-2023 Strategy & Growth Framework, focuses on investing in its core capabilities, specifically in three core technologies, four manufacturing and engineering platforms, and five Market-Access Platforms. The company aims to leverage these strengths to drive innovation, capture high-return opportunities, and deliver value to shareholders.

Corning ended 2020 with approximately $2.7 billion in cash and cash equivalents. The company generated $2.18 billion in net cash from operating activities. Capital expenditures were $1.4 billion, a decrease from the prior year. The company also managed its debt through various financing activities and maintained a leverage ratio well within its covenants.