How did the different business segments perform?

Most segments showed strong performance. Optical Communications and Specialty Materials were standouts with 34% and 32% sales growth, respectively. Display Technologies saw 4% sales growth despite LCD glass price declines. Environmental Technologies and Life Sciences also reported modest sales increases. The 'All Other' segment experienced a slight sales decline.

What is the company's outlook for the remainder of 2017?

Corning anticipates continued growth across its segments. Display Technologies expects mid-single digit growth in glass demand and a favorable pricing environment. Optical Communications is projected to see low-teens sales growth. Specialty Materials growth will depend on customer adoption of new innovations, and Life Sciences expects low-single digit growth.

How is Corning managing its cash and returning capital to shareholders?

Corning ended Q1 2017 with $4.8 billion in cash and cash equivalents. The company is committed to returning capital through a growing quarterly dividend and share repurchases. In Q1 2017, $408.3 million was used for share repurchases, and capital expenditures are projected at $1.5 billion for the year to support growth initiatives.

GLW 10-Q Quarterly Report Q1 FY2017 — Revenue, Net Income, EPS

Q: What drove the significant increase in net income from Q1 2016 to Q1 2017?

The significant increase in net income was primarily driven by a substantial decrease in translated earnings contract losses (after-tax reduction of $273 million), improved sales across most segments, particularly Optical Communications and Specialty Materials, and a reduction in restructuring charges. These factors, combined with an increase in equity earnings from affiliates, led to the turnaround.

Summary

Corning Inc. (GLW) reported a significant turnaround in the first quarter of 2017, moving from a net loss of $368 million in Q1 2016 to a net income of $86 million. This improvement was driven by strong sales growth across most segments, particularly Optical Communications and Specialty Materials, and a substantial reduction in translated earnings contract losses. The company also saw an increase in gross margin to 40% from 37% year-over-year. While facing some pricing pressures in Display Technologies, overall operational improvements and strategic growth initiatives position Corning for continued recovery and expansion.

Financial Highlights

51 data points

Beta

Revenue

$2.38B

0.4% Gross Margin

Net Income

$86.00M

0.0% Net Margin

EPS (Diluted)

$0.07

Total Assets

$28.30B

Cash & Equivalents

$4.84B

Free Cash Flow

$191.00M

Financial Statements

Beta

Revenue	$2.38B
Cost of Revenue	$1.42B
Gross Profit	$951.00M
SG&A Expenses	$319.00M
Operating Income	$413.00M
Net Income	$86.00M
EPS (Basic)	$0.07
EPS (Diluted)	$0.07
Shares Outstanding (Basic)	925.00M
Shares Outstanding (Diluted)	936.00M

Key Highlights

1Net income improved dramatically to $86 million ($0.07 per share) in Q1 2017 from a net loss of $368 million ($(0.36) per share) in Q1 2016.
2Total net sales increased by 16% to $2.375 billion, with notable growth in Optical Communications (up 34%) and Specialty Materials (up 32%).
3Gross margin expanded to 40% from 37% year-over-year, reflecting higher sales and cost efficiencies.
4Translated earnings contract losses decreased significantly, contributing to the improved net income.
5The company continued to return capital to shareholders through increased dividends and substantial share repurchases.
6Corning is investing heavily in future growth, with capital expenditures totaling $364 million in Q1 2017, with an expectation of $1.5 billion for the full year 2017.

CORNING INC /NY Quarterly Report for Q1 Ended Mar 31, 2017

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions