- GAAP and core sales were
$3.6 billion ; core sales grew 4% sequentially and 21% year over year, driven by strong growth inOptical Communications ; GAAP net income was$371 million , and core net income was$485 million . - GAAP EPS was
$0.43 and core EPS was$0.56 ; core EPS increased 6% sequentially and 30% year over year. - Lower production levels in the automotive industry due to the semiconductor chip shortage reduced sales by approximately
$40 million and EPS by$0.02 . - Gross margin expanded 50 basis points sequentially and 70 basis points year over year to 38.3% despite a net impact of 150 basis points from supply chain challenges and inflationary headwinds.
- Free cash flow was
$497 million for the quarter and$1.3 billion for the first nine months of 2021. - For the fourth quarter,
Corning expects core sales to be in the range of$3.5 billion to$3.7 billion with core EPS in the range of$0.50 to$0.55 . Profitability is expected to decline slightly on a sequential basis due to further reductions in automotive industry-related sales and lowerCorning ® Gorilla® Glass sales following large product launches by customers.
Weeks continued, “Corning has become increasingly vital to multiple industry transformations that are moving the world forward. Key trends continue to converge around our capabilities – and we believe this is just the beginning. Corning’s strong position reflects the contributions of our dedicated people as we navigate this period of global disruption.”
Tripeny concluded, “As we approach 2022, we remain focused on driving top-line growth and expanding our margins. We are well positioned to address growing customer demand, deepen our innovation portfolio, and reward shareholders.”
Market-Access Platform Highlights
During the quarter,
Optical Communications – Demand on networks is at an all-time high, setting the stage for significant investments by operators to expand network capacity, capability, and access. During the quarter, the company announced a collaboration with AT&T. Corning’s capacity expansions will allow AT&T to extend investments in fiber infrastructure, expandU.S. broadband networks, and accelerate 5G deployment.Corning continues to outperform the market.- Life Sciences –
Corning continues to support the pandemic response, and its portfolio of advanced vials and pharmaceutical glass tubing has enabled the delivery of more than 3 billion doses of COVID-19 vaccines so far. The company also continues to advance its pharmaceutical packaging portfolio through key partnerships and a growing customer base. Additionally, innovations are helping advance developments in cell- and gene-based therapies, which offer a significant opportunity to increaseCorning content in life sciences products. Mobile Consumer Electronics –Corning continues to advance its objective of delivering moreCorning content, and capturing higher revenue, per device. During the quarter, Samsung introduced its Galaxy Z Fold3 5G and Galaxy Z Flip3 5G, both featuringCorning ® Gorilla® Glass Victus®. These devices featureCorning ® Gorilla® Glass with DX for device cameras, marking Corning’s entrance into a new product category. Additionally, nearly 30 new devices – including smartphones, wearables, and laptops – launched featuringCorning ® Gorilla® Glass.- Automotive –
Corning is uniquely suited to address global trends toward cleaner, safer vehicles that enhance the driving experience.Jeep andCorning announced that a windshield withCorning ® Gorilla® Glass is available as a factory-installed option on the 2021Jeep ® Wrangler and 2021Jeep ® Gladiator. Environmental Technologies continues to deliver moreCorning content per vehicle; since 2017, the company’s automotive product sales have increased more than 40% while global car sales have decreased 20%. - Display – The market for large-sized TVs is projected to grow at a double-digit compound annual growth rate through 2024. Gen 10.5 glass provides the most economical approach for larger sets, and
Corning is well positioned to meet growing demand as the leader in Gen 10.5. Glass demand at retail is expected to be up by a high-single digit percentage in 2022. The company expects the glass pricing environment to remain favorable in the fourth quarter and in 2022. Fourth-quarter glass pricing is expected to be consistent with the third quarter.
Third-Quarter 2021 Results and Comparisons
(In millions, except per-share amounts)
Q3 2021 | Q2 2021 | % change | Q3 2020 | % change | |||||||||||
GAAP | $ | 3,615 | $ | 3,501 | 3 | % | $ | 3,001 | 20 | % | |||||
GAAP Net Income | $ | 371 | $ | 449 | (17 | %) | $ | 427 | (13 | %) | |||||
GAAP EPS | $ | 0.43 | $ | (0.42 | ) | ** | $ | 0.48 | (10 | %) | |||||
Core Sales* | $ | 3,639 | $ | 3,504 | 4 | % | $ | 3,007 | 21 | % | |||||
Core Net Income* | $ | 485 | $ | 459 | 6 | % | $ | 380 | 28 | % | |||||
Core EPS* | $ | 0.56 | $ | 0.53 | 6 | % | $ | 0.43 | 30 | % |
*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.
**Not Meaningful
Third-Quarter 2021 Segment Results
Display Technologies
Q3 2021 | Q2 2021 | % change | Q3 2020 | % change | |||||||||||
$ | 956 | $ | 939 | 2 | % | $ | 827 | 16 | % | ||||||
Net Income Before Tax | $ | 311 | $ | 312 | (0 | %) | $ | 248 | 25 | % | |||||
Net Income | $ | 247 | $ | 248 | (0 | %) | $ | 196 | 26 | % |
In Display Technologies, third-quarter sales were
Q3 2021 | Q2 2021 | % change | Q3 2020 | % change | |||||||||||
$ | 1,131 | $ | 1,075 | 5 | % | $ | 909 | 24 | % | ||||||
Net Income Before Tax | $ | 177 | $ | 188 | (6 | %) | $ | 147 | 20 | % | |||||
Net Income | $ | 139 | $ | 148 | (6 | %) | $ | 115 | 21 | % |
In
Specialty Materials
Q3 2021 | Q2 2021 | % change | Q3 2020 | % change | |||||||||||
$ | 556 | $ | 483 | 15 | % | $ | 570 | (2 | %) | ||||||
Net Income Before Tax | $ | 135 | $ | 103 | 31 | % | $ | 184 | (27 | %) | |||||
Net Income | $ | 107 | $ | 81 | 32 | % | $ | 146 | (27 | %) |
In Specialty Materials, third-quarter sales were
Environmental Technologies
Q3 2021 | Q2 2021 | % change | Q3 2020 | % change | |||||||||||
$ | 385 | $ | 407 | (5 | %) | $ | 379 | 2 | % | ||||||
Net Income Before Tax | $ | 76 | $ | 102 | (25 | %) | $ | 87 | (13 | %) | |||||
Net Income | $ | 60 | $ | 81 | (26 | %) | $ | 69 | (13 | %) |
In Environmental Technologies, third-quarter sales were
Life Sciences
Q3 2021 | Q2 2021 | % change | Q3 2020 | % change | ||||||||||||
$ | 305 | $ | 312 | (2 | %) | $ | 223 | 37 | % | |||||||
Net Income Before Tax | $ | 57 | $ | 66 | (14 | %) | $ | 36 | 58 | % | ||||||
Net Income | $ | 45 | $ | 52 | (13 | %) | $ | 28 | 61 | % |
In Life Sciences, third-quarter sales were
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Third-Quarter Conference Call Information
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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 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 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, and the Company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the Company’s manufacturing capacity. These statements 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. 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, our global supply chains and stock price; the effects of acquisitions, dispositions and other similar transactions; 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
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whittemom@corning.com
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Attachments
- Q3 2021 Earnings Infographic
- Q3 2021 Earnings Release Financials
- Corning Reports Third-Quarter 2021 Results as
Sales Reach All-Time High
Q3 2021 Earnings Infographic
Corning Reports Third-Quarter 2021 Results as Sales Reach All-Time High
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