8-KEarnings & ResultsExhibits & Filings

CORNING INC /NY 8-K Report, Financial Results (Oct 24, 2006)

Filed October 24, 2006For Securities:GLW

Summary

Corning Incorporated (GLW) reported strong third-quarter 2006 results, exceeding expectations with sales of $1.28 billion and net income of $438 million ($0.27 per diluted share). The company highlighted robust performance in its Display Technologies segment, driven by increased LCD glass volume, which saw a 35% year-over-year increase. This growth was primarily fueled by strong consumer demand for LCD televisions and other electronic devices. Looking ahead, Corning provided an optimistic outlook for the fourth quarter, projecting sales between $1.28 billion and $1.33 billion and EPS between $0.26 and $0.29 (excluding special items). The company continues to invest in research and development, showcasing new products like the Epic system for life sciences and exploring advanced display technologies, underscoring its commitment to long-term innovation and diversification.

Key Highlights

  • 1Third-quarter 2006 sales reached $1.28 billion, a 8% increase year-over-year, with net income of $438 million ($0.27 per diluted share).
  • 2Display Technologies segment sales were $506 million, up 3% year-over-year, with total LCD glass volume increasing 35% year-over-year.
  • 3The company reported a strong balance sheet with $2.8 billion in cash and short-term investments at quarter-end.
  • 4Positive free cash flow of $76 million was generated in the third quarter.
  • 5Corning forecasts fourth-quarter 2006 sales to be between $1.28 billion and $1.33 billion.
  • 6Fourth-quarter 2006 EPS is projected to be between $0.26 and $0.29, excluding special items.
  • 7The company is actively investing in R&D, with the introduction of the Epic system for drug screening and exploration of new display technologies.

Frequently Asked Questions

Corning reported third-quarter 2006 sales of $1.28 billion and net income of $438 million, or $0.27 per diluted share. This represented an 8% increase in sales compared to the same period last year.

The Display Technologies segment showed strong performance with sales of $506 million, a 3% increase year-over-year. Total LCD glass volume, including wholly owned businesses and the joint venture Samsung Corning Precision Glass, increased by 35% year-over-year due to increased demand for LCD displays.

Corning expects fourth-quarter 2006 sales to be in the range of $1.28 billion to $1.33 billion and diluted earnings per share (excluding special items) to be between $0.26 and $0.29. The company anticipates continued strong volume growth in its display segment.

The report mentions a charge of $13 million ($0.01 per share) in the third quarter related to the asbestos litigation settlement, primarily reflecting the increase in the market value of Corning common stock to be contributed to the settlement trust. This is a non-GAAP adjustment, and excluding it, net income would have been $451 million or $0.28 per share.