Summary
Corning Incorporated (GLW) announced its third-quarter 2005 financial results, reporting sales of $1.188 billion and net income of $203 million ($0.13 per share). Excluding special charges totaling $202 million ($0.13 per share), the company's non-GAAP earnings per share (EPS) of $0.26 exceeded its previous guidance range of $0.20 to $0.22. The results were significantly boosted by strong performance in the Display Technologies segment, driven by increased demand for LCD glass, particularly larger substrates for televisions. The company also provided an outlook for the fourth quarter of 2005, expecting sales between $1.18 billion and $1.24 billion and non-GAAP EPS in the range of $0.21 to $0.23. Despite some expected pricing pressures and potential industry inventory fluctuations, Corning anticipates continued growth in the LCD market, projecting it to represent 10% of the global TV market in 2005 and potentially 20-25% by 2007. Financially, Corning ended the quarter with $2.4 billion in cash and investments, exceeding its total debt by over $300 million, and its long-term debt rating was upgraded by Moody's.
Key Highlights
- 1Corning reported third-quarter 2005 sales of $1.188 billion and net income of $203 million ($0.13 EPS).
- 2Excluding $202 million in special charges, adjusted EPS of $0.26 beat guidance of $0.20-$0.22.
- 3The Display Technologies segment showed robust growth with sales up 66% year-over-year, driven by strong LCD glass volume, particularly for large-size substrates.
- 4The company anticipates continued growth in the LCD market, projecting it to reach 10% of the global TV market in 2005.
- 5Corning ended the quarter with $2.4 billion in cash and short-term investments, improving liquidity and exceeding total debt.
- 6Moody's Investor Service upgraded Corning's long-term debt rating to Baa3 with a stable outlook.
- 7Fourth-quarter 2005 guidance projects sales of $1.18-$1.24 billion and non-GAAP EPS of $0.21-$0.23.