- GAAP and core sales were
$3.5 billion ; core sales grew 35% year over year and 17% versus second-quarter 2019. - GAAP net income was
$449 million and core net income was$459 million . - GAAP EPS was (
$0.42 ) and core EPS was$0.53 , up 112% year over year and 18% versus second-quarter 2019.- The difference between GAAP and core EPS was primarily due to a one-time accounting treatment resulting from the
Samsung Display Co., Ltd. preferred share transaction, which reduced fully diluted share count by 35 million.
- The difference between GAAP and core EPS was primarily due to a one-time accounting treatment resulting from the
- Gross margin expanded 200 basis points sequentially to 37.8%, and operating margin expanded 120 basis points sequentially to 18.3%.
- Free cash flow of
$471 million grew$186 million year over year; first-half free cash flow generation was$843 million . - Looking ahead to the third quarter, the company expects core sales to be in the range of
$3.5 billion to$3.7 billion and core EPS in the range of$0.54 to$0.59 .
“Corning had an outstanding second quarter. We are growing faster than our underlying markets and achieved a revenue milestone of
Tripeny continued, “Our value creation model is working. We pursue opportunities that utilize capabilities from our focused and cohesive portfolio to drive growth. By repurposing and reapplying capabilities, we’re increasing our probability of success, lowering our cost of innovation, and becoming more capital efficient.”
Market-Access Platform Highlights
- Automotive –
Corning is addressing a combined$100 -per-car content opportunity across emissions, precision glass products, and auto-glass solutions, driven by the company’s More Corning growth strategy. During the quarter, the company entered a new product category with itsCorning ® Curved Mirror Solutions. The innovation is being adopted in Hyundai Mobis’ head-up display system, featured in the Hyundai IONIQ 5, to deliver an enhanced digital user experience. Mobile Consumer Electronics –Corning advanced its More Corning strategy by entering the mobile device camera optics category.Corning ® Gorilla® Glass with DX andCorning ® Gorilla® Glass with DX+ composites enable high-quality image capture through a unique combination of advanced optical performance, superior scratch resistance, and durability. Samsung is the first adopter. Also, during the quarter, Apple awardedCorning an additional$45 million from itsAdvanced Manufacturing Fund – recognizing the two companies’ strong history of collaboration. Throughout the quarter, more than 20 devices – including smartphones, wearables, and laptops – launched featuringCorning ® Gorilla® Glass.Optical Communications –Optical Communications has returned to growth as 5G, fiber-to-the-home, and cloud computing drive greater demand for Corning’s content.Corning is outperforming the market and addressing its customers’ toughest challenges. During the quarter, the company introducedCorning ® SMF-28® Contour fiber, which offers an industry-first combination of superior bendability, compatibility with other fibers, and low signal loss.Corning also launched EDGETM Rapid Connect solutions that increase fiber density and reduce customer installation time by up to 70%.- Life Sciences – Life Sciences saw strength across its underlying lab research, bioprocessing, and diagnostics markets. Cell- and gene-based therapies and advances in research are creating opportunities for
Corning to capture more value with its innovations. The company is successfully building its Corning Valor® Glass franchise. During the quarter,Corning collaborated with Thermo Fisher Scientific and OPTIMA pharma to demonstrate how Valor Glass contributes to a 67% increase in vaccine packaging filling speed. - Display –
Corning continues to experience the most favorable pricing environment in more than a decade and during the quarter announced its second increase to display glass substrate prices this year. The company also hosted an official opening of its Gen 10.5 facility inWuhan, China , co-located with a BOE Technology Group plant. Corning’sWuhan plant further positions the company to capture demand for large-size TVs.
Second-Quarter 2021 Results and Comparisons
(In millions, except per-share amounts)
Q2 2021 | Q1 2021 | % change | Q2 2020 | % change | |||||||||||||||||
GAAP | $ | 3,501 | $ | 3,290 | 6% | $ | 2,561 | 37% | |||||||||||||
GAAP Net Income (Loss) | $ | 449 | $ | 599 | (25%) | $ | (71 | ) | *** | ||||||||||||
GAAP EPS** | $ | (0.42 | ) | $ | 0.67 | *** | $ | (0.13 | ) | *** | |||||||||||
Core Sales* | $ | 3,504 | $ | 3,263 | 7% | $ | 2,588 | 35% | |||||||||||||
Core Net Income* | $ | 459 | $ | 402 | 14% | $ | 218 | 111% | |||||||||||||
Core EPS* | $ | 0.53 | $ | 0.45 | 18% | $ | 0.25 | 112% |
*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 difference between GAAP and core EPS was primarily due to a one-time accounting treatment resulting from the
***Not Meaningful
Second-Quarter 2021 Segment Results
Display Technologies
Q2 2021 | Q1 2021 | % change | Q2 2020 | % change | |||||||||||||||||
$ | 939 | $ | 863 | 9% | $ | 753 | 25% | ||||||||||||||
Net Income Before Tax | $ | 312 | $ | 269 | 16% | $ | 193 | 62% | |||||||||||||
Net Income | $ | 248 | $ | 213 | 16% | $ | 152 | 63% |
In Display Technologies, second-quarter sales were
Q2 2021 | Q1 2021 | % change | Q2 2020 | % change | |||||||||||||||||
$ | 1,075 | $ | 937 | 15% | $ | 887 | 21% | ||||||||||||||
Net Income Before Tax | $ | 188 | $ | 142 | 32% | $ | 104 | 81% | |||||||||||||
Net Income | $ | 148 | $ | 111 | 33% | $ | 81 | 83% |
In
Specialty Materials
Q2 2021 | Q1 2021 | % change | Q2 2020 | % change | |||||||||||||||||||
$ | 483 | $ | 451 | 7% | $ | 417 | 16% | ||||||||||||||||
Net Income Before Tax | $ | 103 | $ | 115 | (10%) | $ | 114 | (10%) | |||||||||||||||
Net Income | $ | 81 | $ | 91 | (11%) | $ | 90 | (10%) |
In Specialty Materials, second-quarter sales of
Environmental Technologies
Q2 2021 | Q1 2021 | % change | Q2 2020 | % change | |||||||||||||||||
$ | 407 | $ | 441 | (8%) | $ | 226 | 80% | ||||||||||||||
Net Income Before Tax | $ | 102 | $ | 94 | 9% | $ | 0 | * | |||||||||||||
Net Income | $ | 81 | $ | 74 | 9% | $ | 0 | * |
*Not Meaningful
In Environmental Technologies, second-quarter sales of
Life Sciences
Q2 2021 | Q1 2021 | % change | Q2 2020 | % change | |||||||||||||||||
$ | 312 | $ | 300 | 4% | $ | 243 | 28% | ||||||||||||||
Net Income Before Tax | $ | 66 | $ | 61 | 8% | $ | 39 | 69% | |||||||||||||
Net Income | $ | 52 | $ | 48 | 8% | $ | 31 | 68% |
In Life Sciences, second-quarter sales were
Upcoming Investor Events
On
Second-Quarter Conference Call Information
The company will host its second-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.
Caution Concerning Forward-Looking Statements
The statements contained in this release that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” and “target” and 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 estimates are subject to change and uncertainty which are, in many instances, beyond our control. There can be no assurance that future developments will be in accordance with management’s expectations. Actual results could differ materially from those expected by us, depending on the outcome of various factors. We do not undertake to update forward-looking statements.
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, actual results could differ materially. The company does not undertake to update forward-looking statements. 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: the duration and severity of the COVID-19 pandemic, and its impact across our businesses on demand, operations and our global supply chains; the effects of acquisitions, dispositions and other similar transactions; global business, financial, economic and political conditions; tariffs and import duties; currency fluctuations 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:
Megan Whittemore
(202) 661-4171
whittemom@corning.com
Investor Relations Contact:
(607) 974-6716
nicholsoas@corning.com
Attachments
- Q2 2021 Earnings Release Financials
- Q2 2021 Earnings Infographic
- Second-Quarter 2021 Earnings Release
Q2 2021 Earnings Infographic
Corning Reports Outstanding Second-Quarter 2021 Results
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