8-KOther Events

CORNING INC /NY 8-K Report (Nov 12, 2002)

Filed November 12, 2002For Securities:GLW

Summary

Corning Incorporated (GLW) announced on November 12, 2002, a definitive agreement to sell its precision lens business, located in Cincinnati, Ohio, to 3M Company for approximately $850 million in cash. This business is part of Corning's Information Display Segment and is the leading global manufacturer of lens systems for rear projection televisions. The transaction is anticipated to close by December 31, 2002, subject to customary approvals. Corning expects to recognize an after-tax gain of approximately $400 million from this sale. The proceeds will be strategically deployed to strengthen Corning's balance sheet by reducing debt, with a portion also allocated to an increased annual contribution to its U.S. pension plan. The company intends to classify this divested business as a discontinued operation in its financial statements beginning in the fourth quarter of 2002, reflecting its impact on ongoing operations.

Key Highlights

  • 1Corning Inc. agrees to sell its precision lens business to 3M Company for $850 million.
  • 2The precision lens business is a leading manufacturer of lens systems for rear projection televisions.
  • 3The sale is expected to result in an after-tax gain of approximately $400 million for Corning.
  • 4Proceeds from the sale will be used to reduce debt and strengthen Corning's balance sheet.
  • 5A portion of the proceeds will be used for an increased contribution to Corning's U.S. pension plan.
  • 6The business will be accounted for as a discontinued operation starting in Q4 2002.
  • 7The transaction is expected to close by December 31, 2002.

Frequently Asked Questions

The primary purpose of selling the precision lens business is to improve Corning's financial health, reduce debt, and strengthen its balance sheet as part of a broader plan to return to profitability.

Corning expects to record an after-tax gain of approximately $400 million from the sale. The financial results of the precision lens business will be treated as a discontinued operation beginning in the fourth quarter of 2002.

Corning plans to use the $850 million in proceeds to reduce its outstanding debt and strengthen its balance sheet. Additionally, a portion will be allocated to increase its annual contribution to its U.S. pension plan.

The sale is expected to close by December 31, 2002, subject to the satisfaction of customary closing conditions and the receipt of regulatory approvals.