Summary
Corning Incorporated (GLW) filed an 8-K on October 9, 2002, to announce that its third-quarter 2002 results were expected to be within previously issued guidance. The company projected sales between $830 million and $840 million, with a net loss expected to be in the range of $0.07 to $0.08 per share, excluding one-time items. Including previously announced restructuring and impairment charges of approximately $125 million pretax, along with a $0.12 per share impact from mandatory convertible preferred stock dividends, the total expected net loss for the quarter was projected to be between $0.27 and $0.28 per share. Despite meeting guidance, Corning acknowledged continued weakness in its telecommunications business, attributing it to reduced carrier capital expenditures, industry consolidation, and bankruptcies. This weakness led to sales at the lower end of the guidance range. The company indicated that further restructuring actions, including potential headcount reductions and asset disposals within the telecommunications segment, would be necessary in the fourth quarter to align costs with market realities and achieve profitability in 2003. Corning also highlighted its strong liquidity position, with over $1.5 billion in cash and short-term investments at the end of the quarter.
Key Highlights
- 1Corning expects Q3 2002 results to meet previously issued guidance.
- 2Projected Q3 sales range: $830 million to $840 million.
- 3Anticipates a net loss of $0.07 to $0.08 per share (excluding one-time items) for Q3.
- 4Total expected net loss for Q3, including charges and preferred stock dividends, is $0.27 to $0.28 per share.
- 5Acknowledges continued weakness and lower-end sales performance in the telecommunications segment due to industry challenges.
- 6Plans further restructuring in Q4, including potential headcount reductions and asset optimization in the telecom business.
- 7Maintains a strong liquidity position with over $1.5 billion in cash and short-term investments.