8-KOther Events

CORNING INC /NY 8-K Report (Apr 25, 2002)

Filed April 25, 2002For Securities:GLW

Summary

This 8-K filing from Corning Inc. on April 25, 2002, details announcements made at the company's Annual Meeting of Shareholders. Chairman and CEO James R. Houghton addressed the challenging market conditions, particularly in the telecommunications sector, while reaffirming the company's commitment to its core technological strengths and long-term growth potential. He emphasized that despite current over-capacity and low demand, the company's innovation in areas like optical communications will position it for future recovery and leadership. Houghton also announced significant restructuring plans, including workforce reductions, consolidation, and R&D cuts, aimed at returning Corning to profitability in 2003. These changes are described as painful but necessary for navigating the current economic climate and preparing for a leaner operational model. The filing also notes the re-election of several directors and the departure of two board members, as well as shareholder approval of the 2002 worldwide employee share purchase plan.

Key Highlights

  • 1Chairman and CEO James R. Houghton expressed confidence in Corning's ability to succeed despite current market challenges.
  • 2The company reaffirmed its commitment to leveraging fundamental technology strengths in telecommunications, advanced materials, and displays for long-term growth.
  • 3Significant cost-cutting and restructuring initiatives, including workforce reductions and facility consolidation, are underway to achieve profitability in 2003.
  • 4Corning anticipates a recovery in the telecommunications industry driven by continued high bandwidth growth, positioning itself to lead in optical communications.
  • 5Shareholders re-elected four directors and approved the 2002 worldwide employee share purchase plan.
  • 6Two directors, John W. Loose and Roger G. Ackerman, are stepping down from the Board.

Frequently Asked Questions

Corning believes the telecommunications industry has hit bottom, but expects demand to remain low in the near future. However, the company is confident that continued high bandwidth growth will eventually drive demand for optical communications equipment and that Corning is positioned to be a leader in this eventual recovery.

Corning is undertaking major restructuring plans, including workforce reductions, organizational consolidation, plant closures, R&D cuts, and centralization of shared services. These measures are intended to reduce costs and return the company to profitability by 2003.

James R. Houghton, Chairman and CEO, addressed shareholders. Shareholders re-elected directors John Seely Brown, Gordon Gund, John M. Hennessy, and H. Onno Ruding. John W. Loose (past president and CEO) resigned from the board upon his retirement, and Roger G. Ackerman (retired chairman and CEO) did not stand for re-election.

This 8-K filing serves as a Current Report to the SEC to announce material events, specifically the proceedings and announcements made at Corning's Annual Meeting of Shareholders on April 24, 2002, including key executive remarks and director elections. It also incorporates by reference the press release detailing these events.