Summary
Corning Inc. (GLW) reported a net loss of $71 million, or $(0.13) per diluted share, for the second quarter of 2020, a significant decline from the $92 million net income, or $0.09 per diluted share, reported in the same period of 2019. This downturn was primarily driven by substantial restructuring and impairment charges totaling $337 million in Q2 2020, including a significant $195 million asset impairment loss related to research and development programs, alongside increased severance and capacity realignment costs. Despite the net loss, the company saw increases in net sales for its Specialty Materials segment, driven by demand for premium glasses and IT products. However, this was offset by significant declines in Display Technologies, Optical Communications, and Environmental Technologies segments, largely attributed to broader market weakness and the impact of the COVID-19 pandemic on automotive manufacturing and consumer spending. Management has withdrawn full-year guidance due to economic uncertainty but anticipates sequential improvement in sales and profits for the third quarter, focusing on preserving financial strength and delivering on customer commitments.
Financial Highlights
50 data points| Revenue | $2.56B |
| Cost of Revenue | $1.80B |
| Gross Profit | $756.00M |
| SG&A Expenses | $401.00M |
| Operating Income | -$103.00M |
| Net Income | -$71.00M |
| EPS (Basic) | $-0.13 |
| EPS (Diluted) | $-0.13 |
| Shares Outstanding (Basic) | 759.00M |
| Shares Outstanding (Diluted) | 759.00M |
Key Highlights
- 1Reported a net loss of $71 million for Q2 2020, a reversal from a net income of $92 million in Q2 2019.
- 2Significant restructuring, impairment, and other charges of $337 million were recorded in Q2 2020, including a $195 million asset impairment loss for R&D programs.
- 3Net sales decreased by 13% year-over-year to $2,561 million in Q2 2020, impacted by broad market weakness and COVID-19 effects.
- 4Specialty Materials segment showed resilience with a 13% increase in net sales, driven by demand for premium glasses and IT products.
- 5Display Technologies and Optical Communications segments experienced notable sales declines of 11% and 19% respectively.
- 6The company withdrew its full-year 2020 guidance due to economic uncertainty but anticipates sequential improvement in Q3 2020.
- 7Corning ended the first half of 2020 with $2.2 billion in cash and cash equivalents, indicating a strong liquidity position.