Summary
Corning Inc. (GLW) reported its first quarter 2015 results, showing a significant increase in net income despite relatively flat net sales compared to the prior year. Net sales were $2.265 billion, a slight decrease of 1% from $2.289 billion in Q1 2014. However, net income attributable to Corning Incorporated rose by 35% to $407 million ($0.29 per diluted share) from $301 million ($0.20 per diluted share) in the year-ago period. This substantial profit increase was primarily driven by the absence of a $102 million withholding tax charge related to a dividend from Samsung Corning Precision Materials that impacted Q1 2014 results, alongside improved performance in the Display Technologies and Optical Communications segments. The company's financial health remains strong, with $5.1 billion in cash, cash equivalents, and short-term investments. Operating cash flow for the quarter was $601 million, though this was lower than the prior year due to the absence of a large dividend payment received in Q1 2014. Corning also actively returned capital to shareholders, repurchasing $502 million of its common stock under a new $1.5 billion repurchase program initiated in December 2014. Management anticipates continued sales growth in 2015, largely powered by the Optical Communications segment, with positive contributions expected from Environmental Technologies and Specialty Materials.
Financial Highlights
50 data points| Revenue | $2.27B |
| Cost of Revenue | $1.34B |
| Gross Profit | $929.00M |
| SG&A Expenses | $316.00M |
| Operating Income | $412.00M |
| Net Income | $407.00M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 1.27B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Net income increased by 35% to $407 million ($0.29/share) on net sales of $2.265 billion, up from $301 million ($0.20/share) on net sales of $2.289 billion in Q1 2014.
- 2The significant increase in net income was largely due to the absence of a $102 million dividend withholding tax from Samsung Corning Precision Materials in Q1 2014.
- 3Optical Communications segment sales grew by 18% year-over-year to $697 million, driven by acquisitions and increased demand for carrier and enterprise network products.
- 4Display Technologies segment sales decreased by 13% to $808 million, primarily due to the negative impact of foreign currency fluctuations (Japanese Yen depreciation).
- 5Corning generated $601 million in cash flow from operating activities, a decrease from Q1 2014, mainly due to the absence of a large dividend received in the prior year.
- 6The company repurchased $502 million of common stock in Q1 2015 as part of a new $1.5 billion share repurchase program announced in December 2014.
- 7Corning maintained strong liquidity with $5.1 billion in cash, cash equivalents, and short-term investments as of March 31, 2015.