Summary
Corning Inc. reported a decrease in net sales and net income for the third quarter and first nine months of 2012 compared to the same periods in 2011. The decline in profitability was primarily driven by lower equity earnings from its affiliates, particularly Dow Corning, and a significant downturn in the Display Technologies segment due to price declines and excess supply. Despite these challenges, Corning maintained a strong balance sheet with increased cash, cash equivalents, and short-term investments. The company also continued to invest in research and development and initiated a substantial stock repurchase program, signaling a focus on both protecting financial health and future growth. Key segments showed mixed performance. While Display Technologies faced significant headwinds, the Specialty Materials segment experienced robust growth, largely due to strong demand for Corning® Gorilla® Glass. The Telecommunications and Environmental Technologies segments saw modest declines in sales, while Life Sciences sales increased slightly due to an acquisition. Corning reiterated its commitment to innovation and strategic investments, anticipating stable sales for the full year 2012, though net income is expected to be impacted by affiliate performance and effective tax rate changes.
Financial Highlights
52 data points| Revenue | $2.04B |
| Cost of Revenue | $1.15B |
| Gross Profit | $889.00M |
| R&D Expenses | $73.00M |
| SG&A Expenses | $289.00M |
| Operating Income | $411.00M |
| Net Income | $533.00M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 1.48B |
| Shares Outstanding (Diluted) | 1.49B |
Key Highlights
- 1Consolidated net sales decreased by 2% for both the three and nine months ended September 30, 2012, compared to the prior year periods.
- 2Net income attributable to Corning Incorporated significantly decreased by 36% for the third quarter and 38% for the nine months ended September 30, 2012, compared to 2011.
- 3Equity in earnings of affiliated companies declined substantially (26% for Q3, 38% for YTD) due to lower performance at Dow Corning Corporation and Samsung Corning Precision.
- 4The Display Technologies segment experienced a 6% decrease in net sales for Q3 and 11% for YTD, attributed to significant price declines and excess glass supply, though volume increased sequentially in Q3.
- 5Specialty Materials segment demonstrated strong growth with net sales up 21% for Q3 and 13% for YTD, driven by increased sales of Corning® Gorilla® Glass.
- 6Corning maintained a strong liquidity position, with cash, cash equivalents, and short-term investments increasing to $6.4 billion as of September 30, 2012.
- 7The company repurchased 14.9 million shares of common stock in Q3 2012 as part of its $1.5 billion repurchase program.