Summary
Corning Inc. (GLW) reported its first quarter 2013 results, showing a slight year-over-year decline in net sales to $1.81 billion from $1.92 billion, primarily due to lower sales across most segments, with the Display Technologies segment impacted by foreign currency fluctuations. Despite the top-line decrease, net income saw a modest increase to $494 million, or $0.33 per diluted share, from $474 million, or $0.31 per diluted share, in the prior year. This improvement was driven by a significant tax benefit from the American Taxpayer Relief Act, lower operating expenses due to cost controls and reduced stock compensation, and improved performance in the Telecommunications and Specialty Materials segments. The company maintained a strong balance sheet with $5.8 billion in cash, cash equivalents, and short-term investments, and a reduced debt-to-capital ratio of 12%.
Financial Highlights
51 data points| Revenue | $1.81B |
| Cost of Revenue | $1.04B |
| Gross Profit | $770.00M |
| R&D Expenses | $65.00M |
| SG&A Expenses | $259.00M |
| Operating Income | $324.00M |
| Net Income | $494.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 1.47B |
| Shares Outstanding (Diluted) | 1.48B |
Key Highlights
- 1Net sales decreased by 6% to $1.81 billion, primarily due to lower volumes in most segments, particularly Display Technologies, which was impacted by a weakening Japanese yen.
- 2Net income increased by 4% to $494 million ($0.33 per diluted share), driven by a $54 million tax benefit from the American Taxpayer Relief Act, lower operating expenses, and improved results in Telecommunications and Specialty Materials segments.
- 3Equity in earnings of affiliated companies decreased by 21% to $173 million, largely due to lower earnings from Samsung Corning Precision Materials, also impacted by the yen.
- 4The company maintained a strong liquidity position with $5.8 billion in cash, cash equivalents, and short-term investments.
- 5The debt-to-capital ratio improved, decreasing from 14% at the end of 2012 to 12% at the end of the first quarter of 2013.
- 6Capital expenditures were $194 million, a significant decrease from $412 million in the prior year, with expectations for full-year 2013 capital spending to be approximately $1.3 billion.
- 7The company announced an 11% increase in its quarterly dividend to $0.10 per share and authorized a $2 billion stock repurchase program.