Summary
Corning Inc. reported strong financial performance for the third quarter and nine months ended September 29, 2010. Net sales increased by 8% year-over-year for the quarter and 26% for the nine-month period, reaching $1.602 billion and $4.867 billion respectively. Net income attributable to Corning Incorporated saw a significant jump of 22% for the quarter to $785 million ($0.50/share diluted) and a substantial 98% increase for the nine-month period to $2.514 billion ($1.59/share diluted). The company's improved profitability was driven by strong performance across most operating segments, particularly Display Technologies, Specialty Materials, and Telecommunications. Equity in earnings of affiliated companies, notably from Samsung Corning Precision and Dow Corning, also contributed significantly to the bottom line. Corning maintained a robust balance sheet with $5.0 billion in cash, cash equivalents, and short-term investments, while managing its debt effectively. The company also announced plans for significant capital investments, including a new LCD glass substrate facility in China, underscoring its commitment to future growth.
Financial Highlights
50 data points| Revenue | $1.60B |
| Cost of Revenue | $878.00M |
| Gross Profit | $724.00M |
| SG&A Expenses | $250.00M |
| Operating Income | $319.00M |
| Net Income | $785.00M |
| EPS (Basic) | $0.50 |
| EPS (Diluted) | $0.50 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Net sales for the third quarter of 2010 increased 8% to $1.602 billion, and 26% for the nine months to $4.867 billion, compared to the prior year periods.
- 2Net income attributable to Corning Incorporated surged 22% to $785 million ($0.50/share diluted) in Q3 2010, and 98% to $2.514 billion ($1.59/share diluted) for the nine months.
- 3Gross margin improved significantly to 45% for the quarter and 47% year-to-date, up from 41% and 37% respectively in the prior year, reflecting higher volumes and cost efficiencies.
- 4Equity in earnings of affiliated companies grew by 21% for the quarter to $504 million and 49% for the nine months to $1.447 billion, driven by strong performance from Samsung Corning Precision and Dow Corning.
- 5The company reported a strong liquidity position with $5.0 billion in cash, cash equivalents, and short-term investments as of September 30, 2010.
- 6Corning announced plans for substantial capital investments, including an $800 million new LCD glass substrate facility in China, signaling commitment to future capacity expansion.
- 7The Display Technologies segment showed resilience despite a supply chain inventory correction, with net sales down 5% for the quarter but up 32% for the nine months, supported by strong equity earnings from Samsung Corning Precision.