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

Corning reported a net loss of $22 million, which included significant after-tax charges totaling $47 million. These charges were primarily due to the shutdown of Corning Asahi Video Products Company (CAV), the planned exit from its photonics business, and mark-to-market adjustments related to its asbestos liability settlement.

How did Corning's actual results compare to its financial guidance for the second quarter?

Corning's second-quarter sales of $752 million exceeded the company's guidance range of $715 million to $745 million. The company stated that its results, despite the charges, gave it confidence in achieving its yearly goals.

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

Corning expects third-quarter sales to be between $740 million and $765 million, with earnings per share projected between $0.01 and $0.03. This outlook excludes any remaining gains or losses from exiting the CAV or photonics businesses and further asbestos settlement adjustments.

What is the company's current financial position regarding cash and debt?

Corning ended the second quarter with $1.5 billion in cash and short-term investments. The company actively managed its debt during the quarter, repurchasing debentures and reducing its debt-to-capital ratio to 40% from 45.6% at the end of the previous quarter.

GLW 8-K SEC Disclosure — Jul 22, 2003

Summary

Corning Incorporated (GLW) filed an amended Form 8-K on July 21, 2003, to include its second-quarter financial results. The company reported a net loss of $22 million, or $0.02 per share, for the quarter ended June 30, 2003. This loss included significant after-tax charges totaling $47 million, primarily related to the shutdown of Corning Asahi Video Products Company (CAV), the exit from its photonics business, and adjustments to its asbestos settlement reserve. Despite these charges, Corning's results exceeded its financial guidance for the quarter, driven by strong performance in its LCD glass business. The company ended the quarter with $1.5 billion in cash and short-term investments and actively managed its debt, reducing its debt-to-capital ratio. Looking ahead to the third quarter of 2003, Corning anticipates sales to be in the range of $740 million to $765 million, with an expected earnings per share of $0.01 to $0.03, excluding certain one-time charges. The company expects continued growth in its LCD glass business and stability in its environmental sector, while the telecommunications segment faces ongoing pricing pressures. Corning also provided an update on its strategic exits from the photonics and conventional video glass businesses.

Key Highlights

1Corning Inc. reported a net loss of $22 million ($0.02 per share) for Q2 2003, which included $47 million in after-tax charges.
2Significant charges were related to the exit from its photonics business and the shutdown of Corning Asahi Video Products Company (CAV).
3Second-quarter sales of $752 million exceeded the company's guidance, with strong performance driven by the LCD glass business.
4Corning ended Q2 2003 with $1.5 billion in cash and short-term investments.
5The company actively reduced its debt, lowering its debt-to-capital ratio to 40% from 45.6% in the prior quarter.
6Third-quarter 2003 sales are projected between $740 million and $765 million, with expected EPS of $0.01-$0.03 (excluding certain charges).
7Corning is in the process of exiting its photonics and conventional video glass businesses.

CORNING INC /NY 8-K/A Report (Jul 22, 2003)

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