Summary
Corning Inc. (GLW) reported net sales of $2,067 million for the third quarter of 2013, a slight increase compared to $2,038 million in the same period of 2012. However, net income decreased by 23% to $408 million, or $0.28 per diluted share, compared to $533 million, or $0.36 per diluted share, in the prior year. This decline was primarily attributed to lower equity earnings from affiliated companies, particularly Samsung Corning Precision, and the impact of foreign currency exchange rate fluctuations on hedging programs. For the first nine months of 2013, net sales remained stable at $5,863 million, while net income increased by 4% to $1,540 million, or $1.04 per diluted share, compared to $1,481 million, or $0.98 per diluted share, in the same period of 2012. The company maintained a strong balance sheet with $5.4 billion in cash, cash equivalents, and short-term investments, and a reduced debt-to-capital ratio of 12%. Positive operating cash flow of $1.5 billion was generated during the nine-month period, reflecting the company's focus on financial health amidst ongoing investments in future innovation and growth across its various segments, including Telecommunications and Life Sciences, which showed sales increases. Key operational highlights include a significant increase in net sales for the Telecommunications segment, driven by carrier and enterprise products, and growth in the Life Sciences segment bolstered by the recent acquisition of Discovery Labware. The Display Technologies segment experienced lower sales due to price declines and the depreciation of the Japanese yen, although volume increased. The Specialty Materials segment saw a decrease in sales, primarily impacted by lower demand for Corning® Gorilla® Glass. Corning continues to manage its operations with a focus on both protecting its financial health and investing in long-term growth opportunities, including ongoing research and development efforts and strategic capital expenditures.
Financial Highlights
53 data points| Revenue | $2.07B |
| Cost of Revenue | $1.17B |
| Gross Profit | $901.00M |
| R&D Expenses | $59.00M |
| SG&A Expenses | $265.00M |
| Operating Income | $439.00M |
| Net Income | $408.00M |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.46B |
Key Highlights
- 1Net income decreased by 23% to $408 million ($0.28/share) in Q3 2013 compared to $533 million ($0.36/share) in Q3 2012, primarily due to lower equity earnings and foreign currency impacts.
- 2For the first nine months of 2013, net income increased by 4% to $1,540 million ($1.04/share) compared to $1,481 million ($0.98/share) in the same period of 2012.
- 3The company maintained a strong liquidity position with $5.4 billion in cash, cash equivalents, and short-term investments as of September 30, 2013.
- 4Operating cash flow for the nine months ended September 30, 2013 was $1.5 billion.
- 5Telecommunications segment sales increased significantly in Q3 2013 (+24%) and for the nine-month period (+8%), driven by carrier and enterprise products.
- 6Life Sciences segment sales saw strong growth (+39% in Q3, +36% year-to-date), largely due to the acquisition of Discovery Labware.
- 7Display Technologies segment sales declined due to price decreases and yen depreciation, despite a volume increase.
- 8Specialty Materials segment sales decreased, impacted by lower Corning® Gorilla® Glass sales.
- 9The debt-to-capital ratio improved to 12% as of September 30, 2013, down from 14% at the end of 2012.