Summary
Corning Incorporated (GLW) announced its fourth-quarter and full-year 2005 financial results on January 24, 2006. The company reported fourth-quarter sales of $1.2 billion and a net loss of $32 million ($0.02 per share). This net loss included significant special charges of $371 million, primarily related to a $443 million tax expense charge for increasing the valuation allowance against U.S. deferred tax assets. Excluding these special items, Corning's fourth-quarter net income was $339 million, or $0.22 per share. For the full year 2005, Corning achieved sales of $4.58 billion, a 19% increase year-over-year, driven by strong performance in its Display Technologies segment. The company reported a net income of $585 million ($0.38 per share) for the full year, which also included significant special charges. Excluding these charges, full-year net income was $1.3 billion ($0.85 per share), a substantial improvement from 2004. The company also highlighted strong cash flow generation and a strengthened balance sheet, ending the year with more cash than debt for the first time in over 25 years.
Key Highlights
- 1Corning reported fourth-quarter sales of $1.2 billion, an increase of 16% year-over-year.
- 2Full-year 2005 sales reached $4.58 billion, up 19% from 2004, primarily driven by the Display Technologies segment.
- 3Fourth-quarter net loss was $32 million ($0.02 per share), but excluding $371 million in special charges, net income was $339 million ($0.22 per share).
- 4Full-year 2005 net income was $585 million ($0.38 per share), or $1.3 billion ($0.85 per share) excluding special items, representing significant profit growth.
- 5The company ended 2005 with $2.4 billion in cash and cash equivalents and achieved free cash flow of $443 million for the full year.
- 6Corning's debt-to-capital ratio improved significantly to 24% from 41% in the prior year.
- 7First-quarter 2006 guidance projects sales between $1.2 billion and $1.25 billion, with EPS expected between $0.21 and $0.23 (excluding special items).