Weeks added, “Our markets continue to reflect demand below trend lines, but our sales will recover, and we will return to growth. In the meantime, we will continue to improve our profitability and cash flow, even in this current muted sales environment. As a result, as our markets recover to trend, we can serve them with our existing capacity and capabilities on an improved price and cost platform. This will allow us to grow profitability faster than sales and generate significant incremental cash flow.”
Third-Quarter 2023 Highlights:
- Third-quarter GAAP sales were
$3.2 billion . Core sales were$3.5 billion , consistent with the second quarter, as expected. - Third-quarter GAAP EPS was
$0.19 . Core EPS of$0.45 was consistent sequentially. The difference between GAAP and core EPS primarily reflected constant currency adjustments, translated earnings contract gains, and translation gains on Japanese-yen-denominated debt, as well as restructuring and asset write-off charges. - Core gross margin of 37% increased by 80 basis points sequentially on consistent sales, driven primarily by pricing actions in Display Technologies. Core gross margin increased by 90 basis points year over year on lower sales, reflecting the continued benefit of pricing and productivity improvement actions across the company.
- Third-quarter free cash flow improved to
$466 million , up$156 million sequentially and$211 million year over year.
Fourth-Quarter 2023 Outlook:
- Management expects fourth-quarter core sales of approximately
$3.25 billion , core gross margin percentage similar to the third quarter despite the sequential sales decline, core EPS in the range of$0.37 to$0.42 , and another quarter of strong free cash flow.
Schlesinger added, “For the fourth quarter, we expect core sales to be approximately
Strategy in Action
Recent highlights include:
- Helping industry leaders advance the form and function of smartphones through step changes in engineered glass and glass-ceramics.
- Color-infused glass:
Corning built on its deep relationship with Apple to deliver durable color-infused glass – a first for any smartphone – for the iPhone 15 and iPhone 15 Plus. Apple’s new devices also feature Ceramic Shield, a highly transparent, color-free glass-ceramic, which offers unparalleled durability and toughness for smartphones. - Ultra-thin bendable glass: For half a century,
Corning has helped propel display and cover glass technologies inKorea – a global consumer-electronics innovation hotspot – with industry leaders like Samsung. Building on these relationships,Corning announced plans to expand capabilities in the region and create a hub for ultra-thin bendable-glass manufacturing.
- Color-infused glass:
- Advancing precision automotive glass to facilitate technology-rich interiors and user interfaces for a more connected and safer driving experience.
Corning announced a new collaboration with longtime customer AUO Corporation to expand and accelerate the production of AUO’s industry-leading, large-format curved display modules. In the announcement, AUO highlighted how Corning’s innovative ColdForm™ Technology advances sustainable practices while enabling differentiated designs. - Contributing to global climate initiatives through innovative practices and products.
- The Science Based Targets Initiative approved Corning’s near-term science-based reduction targets for Scope 1 and Scope 2 emissions, determining them to be in line with the Paris Agreement’s goal to limit the global average temperature increase to 1.5° Celsius.
- The company also built on its announcement of
Corning ® Viridian™ Vials – which reduce waste and carbon emissions in the pharmaceutical supply chain – with a suite of life sciences products that provides benefits ranging from renewable materials and sustainable packaging, to supply chain diversity, to energy efficiency and water conservation. Corning also provided a hyperspectral imaging sensor that enables Orbital Sidekick’s recently launched satellites to detect pipeline leaks and other environmental issues.
Third-Quarter 2023 Results and Comparisons
(In millions, except per-share amounts)
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
GAAP | $ | 3,173 | $ | 3,243 | (2 | %) | $ | 3,488 | (9 | %) | ||||||||||
GAAP Net Income (1) | $ | 164 | $ | 281 | (42 | %) | $ | 208 | (21 | %) | ||||||||||
GAAP EPS | $ | 0.19 | $ | 0.33 | (42 | %) | $ | 0.24 | (21 | %) | ||||||||||
Core Sales (2) | $ | 3,459 | $ | 3,482 | (1 | %) | $ | 3,666 | (6 | %) | ||||||||||
Core Net Income (2) | $ | 386 | $ | 388 | (1 | %) | $ | 438 | (12 | %) | ||||||||||
Core EPS (2) | $ | 0.45 | $ | 0.45 | — | $ | 0.51 | (12 | %) |
(1) Represents GAAP net income attributable to
(2) Core performance measures are non-GAAP financial measures. The reconciliation between GAAP and non-GAAP measures is provided in the tables following this news release as well as on the company’s website.
The third-quarter results below are prepared on a basis consistent with Corning’s segment reporting as presented in the company’s consolidated financial statements.
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
$ | 918 | $ | 1,066 | (14 | %) | $ | 1,317 | (30 | %) | |||||||||||
Net Income | $ | 91 | $ | 140 | (35 | %) | $ | 183 | (50 | %) |
In
Display Technologies
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
$ | 972 | $ | 928 | 5 | % | $ | 686 | 42 | % | |||||||||||
Net Income | $ | 242 | $ | 208 | 16 | % | $ | 134 | 81 | % |
In Display Technologies, volume was lower than expected in the third quarter. Sales were
Specialty Materials
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
$ | 563 | $ | 423 | 33 | % | $ | 519 | 8 | % | |||||||||||
Net Income | $ | 72 | $ | 33 | 118 | % | $ | 96 | (25 | %) |
In Specialty Materials, third-quarter sales were
Environmental Technologies
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
$ | 449 | $ | 457 | (2 | %) | $ | 425 | 6 | % | |||||||||||
Net Income | $ | 99 | $ | 107 | (7 | %) | $ | 87 | 14 | % |
In Environmental Technologies, third-quarter sales were
Life Sciences
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
$ | 230 | $ | 231 | — | $ | 312 | (26 | %) | ||||||||||||
Net Income | $ | 13 | $ | 11 | 18 | % | $ | 43 | (70 | %) |
In Life Sciences, third-quarter sales were
Hemlock and Emerging Growth Businesses
Q3 2023 | Q2 2023 | % change | Q3 2022 | % change | ||||||||||||||||
$ | 327 | $ | 377 | (13 | %) | $ | 407 | (20 | %) | |||||||||||
Net (Loss) Income | $ | (8 | ) | $ | 26 | * | $ | 18 | * |
* Not meaningful
In Hemlock and Emerging Growth Businesses, third-quarter sales were
Upcoming Investor Events
On
Third-Quarter Conference Call Information
The company will host its third-quarter conference call on
Presentation of Information in this News Release
This news release includes non-GAAP financial measures. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP. Corning’s non-GAAP financial measures exclude the impact of items that are driven by general economic conditions and events that do not reflect the underlying fundamentals and trends in the company’s operations. The company believes presenting non-GAAP financial measures assists in analyzing financial performance without the impact of items that may obscure trends in the company’s underlying performance. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found on the company’s website by going to the Investor Relations page and clicking “Quarterly" Results” under the “Financials and Filings” tab. These reconciliations also accompany this news release.
With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the
Caution Concerning Forward-Looking Statements
The statements contained in this release and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” “target,” “estimate,” “forecast” or similar expressions are forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements relate to, among other things, the company’s future operating performance, the company’s share of new and existing markets, the company’s revenue and earnings growth rates, the company’s ability to innovate and commercialize new products, the company’s expected capital expenditure and the company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company’s manufacturing capacity.
Although the company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business and key performance indicators that impact the company, there can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws.
Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the
For a complete listing of risks and other factors, please reference the risk factors and forward-looking statements described in our annual reports on Form 10-K and quarterly reports on Form 10-Q.
Web Disclosure
In accordance with guidance provided by the
About
Media Relations Contact:
(202) 661-4171
whittemom@corning.com
Investor Relations Contact:
(607) 974-6716
nicholsoas@corning.com
Attachments
Corning Q3 2023 Earnings Release Financials- Corning Reports Third-Quarter 2023 Financial Results with Continued Improvement in Profitability and Cash Flow
Corning 2023 Q3 IR Earnings Infographic
Source:
2023 GlobeNewswire, Inc., source