What is the primary reason for this amended filing (10-Q/A)?

Corning Incorporated is filing this amended report to restate its previously issued consolidated financial statements for the period from March 31, 2003, through December 31, 2005. This restatement is necessary to correct accounting errors related to its asbestos settlement liability and its investment in Pittsburgh Corning Europe.

What was the financial impact of the restatement on the reported results?

The restatement resulted in minor adjustments to net income and earnings per share for the periods affected. For the three months ended June 30, 2005, net income remained $165 million, and earnings per share were $0.11, both as reported and as restated. However, the restatement led to increases in 'other accrued liabilities' and 'accumulated deficit' on the balance sheet.

What are the key operational highlights for the quarter?

Despite the restatement, Corning reported a 51% year-over-year increase in net income to $165 million for the quarter ended June 30, 2005. Net sales grew 18% to $1.141 billion, driven by strong performance in the Display Technologies segment. The company also saw improved equity earnings from its associated companies and continued to invest in strategic growth areas.

Were there any significant findings regarding internal controls?

Yes, as a result of the accounting errors identified, Corning concluded that material weaknesses existed in its internal control over financial reporting. These weaknesses pertained to the valuation of its asbestos settlement liability and the completeness and accuracy of its equity investment accounting. The company is implementing remediation plans to address these issues.

GLW 10-Q Quarterly Report Q2 FY2005 — Revenue, Net Income, EPS

Summary

Corning Incorporated filed an amendment to its Form 10-Q for the quarter ended June 30, 2005, primarily to restate previously issued financial statements due to accounting errors. These errors related to the asbestos settlement liability and the accounting for its investment in Pittsburgh Corning Europe. The restatement resulted in minor adjustments to net income and earnings per share for the affected periods, but a more significant increase in "other accrued liabilities" and "accumulated deficit" on the balance sheet. Notably, the company identified material weaknesses in its internal control over financial reporting related to these accounting errors. Despite the restatement, the company demonstrated strong operational performance. Net sales increased by 18% year-over-year for the quarter, driven by robust demand in the Display Technologies segment, particularly for large-size glass substrates. Profitability also improved, with net income up 51% year-over-year, largely due to the strong performance of the Display Technologies and Telecommunications segments, and improved equity earnings from Dow Corning. The company also continued to invest in future growth, particularly in Display Technologies and Environmental Technologies, and strengthened its balance sheet through debt reduction and a common stock offering.

Key Highlights

1Restatement of financial statements for Q2 2005 and prior periods due to accounting errors in asbestos settlement liability and investment in Pittsburgh Corning Europe.
2Identified material weaknesses in internal controls over financial reporting related to these accounting errors.
3Reported a 51% year-over-year increase in net income to $165 million for the quarter ended June 30, 2005.
4Net sales increased 18% year-over-year to $1.141 billion, driven by strong demand in the Display Technologies segment.
5Strengthened financial health through debt reduction activities and a common stock offering, leading to a improved debt-to-capital ratio.
6Continued significant capital expenditures, with $698 million invested in the first six months of 2005, primarily for Display Technologies capacity expansion.
7Equity in earnings from associated companies, notably Dow Corning and Samsung Corning Precision, significantly increased, contributing to overall profitability.

CORNING INC /NY Quarterly Report (Amendment) for Q2 Ended Jun 30, 2005

Summary

Key Highlights

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