Summary
Corning Inc. (GLW) reported its first-quarter 2011 financial results, showcasing robust sales growth of 24% year-over-year, reaching $1.92 billion. This increase was driven by strong performance across all operating segments, particularly in Specialty Materials, fueled by demand for Corning® Gorilla® glass, and in Telecommunications, driven by fiber-to-the-premises products. Despite the top-line growth, net income attributable to Corning Incorporated saw a decrease of 8% to $748 million, or $0.47 per diluted share, compared to $816 million, or $0.52 per diluted share, in the prior year. This decline was primarily attributed to lower equity earnings from affiliated companies (Samsung Corning Precision and Dow Corning), the absence of a significant asbestos litigation settlement benefit recorded in Q1 2010, and an increased effective tax rate. The company maintained a strong liquidity position with $6.3 billion in cash, cash equivalents, and short-term investments. However, capital expenditures significantly increased to $532 million, up from $173 million in the prior year, reflecting investments in expanding manufacturing capacity, notably for LCD glass in China and Gorilla® glass in Japan. Corning projects significant sales growth for the full year 2011, driven by strong demand for its specialty materials, while acknowledging potential headwinds from increased taxes and moderating equity earnings.
Financial Highlights
51 data points| Revenue | $1.92B |
| Cost of Revenue | $1.05B |
| Gross Profit | $874.00M |
| SG&A Expenses | $250.00M |
| Operating Income | $460.00M |
| Net Income | $748.00M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.59B |
Key Highlights
- 1Net sales increased by 24% year-over-year to $1.92 billion, driven by broad segment strength.
- 2Net income attributable to Corning decreased by 8% to $748 million ($0.47/share) due to lower equity in earnings from affiliates and the absence of a prior-year asbestos litigation credit.
- 3Strong capital expenditure growth of $532 million (up from $173 million) reflects investments in capacity expansion for LCD glass and Gorilla® glass.
- 4Specialty Materials segment sales surged 165%, driven by high demand for Corning® Gorilla® glass.
- 5The company maintained a strong liquidity position with $6.3 billion in cash, cash equivalents, and short-term investments.
- 6Operating cash flow was $573 million, a decrease from $643 million in the prior year, primarily due to lower net income and changes in working capital.
- 7Corning expects significant sales growth in 2011, but anticipates headwinds from higher taxes and decreased equity earnings from affiliates.