8-KEarnings & ResultsRegulation FDExhibits & Filings

CORNING INC /NY 8-K Report, Financial Results (Apr 18, 2005)

Filed April 18, 2005For Securities:GLW

Summary

Corning Incorporated (GLW) filed an 8-K on April 18, 2005, to provide updated guidance for its first quarter ended March 31, 2005. The company announced that it now expects its first-quarter sales to be between $1.04 billion and $1.05 billion, and earnings per share (EPS) to be between $0.16 and $0.17, before special items. These revised figures significantly exceed the company's previously issued guidance of $980 million to $1.03 billion in sales and $0.11 to $0.13 in EPS. The improved outlook is attributed to stronger-than-anticipated performance from its joint venture, Dow Corning Corporation, and robust demand for its hardware and equipment products. Additionally, Corning expects a lower-than-expected corporate tax rate to positively impact its results. The company also confirmed that volume and pricing for optical fiber and liquid crystal display glass are expected to be within prior guidance ranges.

Key Highlights

  • 1Corning revised its Q1 2005 guidance upwards, exceeding previous expectations for both sales and EPS.
  • 2Expected Q1 2005 sales range: $1.04 billion - $1.05 billion (previous guidance: $980 million - $1.03 billion).
  • 3Expected Q1 2005 EPS range (before special items): $0.16 - $0.17 (previous guidance: $0.11 - $0.13).
  • 4Key drivers for the improved outlook include strong performance from Dow Corning and higher demand for hardware and equipment.
  • 5A lower-than-anticipated corporate tax rate is also expected to benefit Q1 results.
  • 6Optical fiber and liquid crystal display glass volumes and pricing are anticipated to be within prior guidance.
  • 7Corning plans to release its official Q1 results after market close on April 26, 2005, with a conference call scheduled for April 27, 2005.

Frequently Asked Questions

Corning's updated guidance is primarily driven by significantly stronger performance from its joint venture, Dow Corning Corporation, and higher-than-expected demand for its hardware and equipment products. A lower-than-anticipated corporate tax rate is also contributing to the improved outlook.

The revised EPS figures of $0.16 to $0.17 for the first quarter of 2005 are non-GAAP financial measures. They exclude special items such as restructuring charges, impairment charges (like the $19 million impairment related to the investment in Avanex Corporation), and adjustments to the asbestos settlement reserve.

Corning plans to issue its first-quarter results after the New York Stock Exchange closes on Tuesday, April 26, 2005. A conference call to discuss these results is scheduled for Wednesday, April 27, 2005, at 8:30 a.m. EDT.

The company highlighted that its hardware and equipment products are experiencing higher-than-expected demand. Additionally, the volume and pricing for its optical fiber and liquid crystal display glass products are expected to remain within the previously stated guidance ranges for the first quarter.