What were the primary reasons for Corning's net loss in the second quarter of 2003?

Corning reported a net loss of $22 million ($0.02 per share) primarily due to significant after-tax charges totaling $47 million. These charges included costs associated with exiting its photonics business, the shutdown of its Corning Asahi Video Products Company (CAV), and a mark-to-market adjustment for its asbestos liability settlement.

How did Corning's key business segments perform in the second quarter?

The Technologies segment, particularly the liquid crystal display (LCD) glass business, performed strongly with sequential volume gains exceeding 15%, driven by demand for notebook computers and LCD desktop monitors. The Telecommunications segment experienced a slight sales decline due to lower fiber and cable volumes in Asia.

What is Corning's outlook for the third quarter of 2003?

Corning expects third-quarter sales to be in the range of $740 million to $765 million. The company anticipates earnings per share to be between $0.01 and $0.03, excluding any further charges related to business exits or asbestos settlement adjustments.

What was Corning's liquidity and debt position at the end of the second quarter?

Corning ended the second quarter with $1.5 billion in cash and short-term investments. The company also reduced its debt-to-capital ratio to 40% from 45.6% in the prior quarter, reflecting debt reduction activities.

GLW 8-K SEC Disclosure — Jul 21, 2003

Summary

Corning Incorporated (GLW) filed this Form 8-K on July 21, 2003, reporting its financial results for the second quarter ended June 30, 2003. The company reported net sales of $752 million, exceeding its guidance range. Despite higher sales, Corning incurred a net loss of $22 million, or $0.02 per share. This loss was significantly impacted by substantial after-tax charges totaling $47 million, primarily related to exiting the photonics business, shutting down Corning Asahi Video Products Company (CAV), and a mark-to-market adjustment for its asbestos liability settlement. Key operational highlights include strong performance in the liquid crystal display (LCD) glass business, driven by increased demand for notebook computers and LCD desktop monitors, which saw sequential volume gains exceeding 15%. Conversely, the telecommunications segment experienced a slight sales decline due to lower fiber and cable volumes in Asia. The company ended the quarter with $1.5 billion in cash and short-term investments and reduced its debt-to-capital ratio to 40%. Corning provided a positive outlook for the third quarter, expecting sales to be between $740 million and $765 million and earnings per share to range from $0.01 to $0.03, excluding certain charges.

Key Highlights

1Second-quarter net sales of $752 million exceeded company guidance.
2Reported a net loss of $22 million ($0.02 per share), impacted by $47 million in after-tax charges.
3Significant charges include costs associated with exiting the photonics business and shutting down Corning Asahi Video Products Company (CAV).
4The liquid crystal display (LCD) glass business showed strong performance with sequential volume gains exceeding 15%, driven by notebook computers and desktop monitors.
5Telecommunications segment sales saw a slight decline due to reduced fiber and cable volumes in Asia.
6Ended the quarter with $1.5 billion in cash and short-term investments, and reduced debt-to-capital ratio to 40%.
7Provided third-quarter guidance expecting sales between $740 million and $765 million and earnings per share of $0.01 to $0.03 (excluding certain charges).

CORNING INC /NY 8-K Report (Jul 21, 2003)

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