| [September 19, 2007] |
 |
Corning Addresses Investors at Bank of America Conference
CORNING, N.Y. --(Business Wire)-- Corning Incorporated (NYSE:GLW) Senior Vice President - Finance Katherine A. Asbeck will address investors at the 37th Annual Bank of America Investment Conference in San Francisco today. She will update the company's third-quarter guidance and review key growth business opportunities.
"We now expect our third-quarter earnings per share, before special items, to be in the upper end of our guidance range of $.34 to $.37. This is a reflection of the company's strong performance throughout the first two months of this quarter as well as continued strengthening of the yen, which could increase earnings per share by $0.01 this quarter," Asbeck will tell investors. Earnings per share before special items is a non-GAAP financial measure. This and all non-GAAP financial measures are reconciled on the company's investor relations Web site and in attachments to this news release.
"Third-quarter sales are expected to be between $1.525 and $1.575 billion," she will add. Investors will be reminded that the benefit from the yen is more significant to earnings per share than to sales since Corning does not consolidate sales from Samsung Corning Precision Glass Co., Ltd., its 50-percent owned equity venture in Korea which manufactures LCD glass substrates for the Korean market.
Asbeck will reaffirm the healthy supply-chain conditions indicated by the company's liquid crystal display (LCD) industry checks. "Record panel manufacturer shipments for July and August, stable panel pricing, and acceptable panel inventory levels provide good indicators that LCD product shipments are on track with our forecasts," she will note.
In speaking to the company's recently announced dividend and common stock repurchase program, Asbeck will confirm that the third-quarter dividend will be paid on September 28 and will aggregate $80 million. "In addition," she will say, "we have completed the repurchase of $125 million of common stock, or approximately 5.3 million shares, in the third quarter. This is the first phase of our plan to repurchase $500 million in Corning common stock before the end of 2008."
Corning's presentation to investors at the 37th Annual Bank of America Investment Conference will be available via webcast by accessing the IR events calendar on Corning's Web site at www.corning.com/investor_relations.
Presentation of Information in this News Release
Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP. Corning's non-GAAP net income and EPS measures exclude restructuring, impairment and other charges and adjustments to prior estimates for such charges. Additionally, the company's non-GAAP measures exclude adjustments to asbestos settlement reserves required by movements in Corning's common stock price, gains and losses arising from debt retirements, charges or credits arising from adjustments to the valuation allowance against deferred tax assets, equity method charges resulting from impairments of equity method investments or restructuring, impairment or other charges taken by equity method companies, and gains from discontinued operations. The company believes presenting non-GAAP net income and EPS measures is helpful to analyze financial performance without the impact of unusual items that may obscure trends in the company's underlying performance. These non-GAAP measures are reconciled on the company's Web site at www.corning.com/investor_relations and accompanies this news release.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes in global economic and political conditions; currency fluctuations; product demand and industry capacity; competition; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; changes in the mix of sales between premium and non-premium products; new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; stock price fluctuations; and adverse litigation or regulatory developments. Additional risk factors are identified in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended September 30, 2007
(Unaudited; amounts in millions, except per share amounts)
Corning's earnings per share (EPS) excluding special items for the
third quarter of 2007 is a non-GAAP financial measure within the
meaning of Regulation G of the Securities and Exchange Commission.
Non-GAAP financial measures are not in accordance with, or an
alternative to, generally accepted accounting principles (GAAP). The
company believes presenting non-GAAP EPS is helpful to analyze
financial performance without the impact of unusual items that may
obscure trends in the company's underlying performance. A detailed
reconciliation is provided below outlining the differences between
this non-GAAP measure and the directly related GAAP measure.
Range
----------------
Guidance: EPS excluding special items $ 0.34 $ 0.37
Special items:
Restructuring, impairment, and other (charges) and
credits (a)
Asbestos settlement (b)
------- --------
Earnings per share
This schedule will be updated as additional announcements occur.
(a) From time to time, Corning may need to make adjustments to
estimates used in the determination of prior year restructuring
and impairment charges, which could result in a gain or loss
during the quarter.
(b) As part of Corning's asbestos settlement arrangement to be
incorporated into the Pittsburgh Corning Corporation
reorganization plan, Corning will contribute, if the
reorganization plan is approved, 25 million shares of Corning
common stock to a trust. The common stock will be contributed to
the trust, after the plan has been approved by the asbestos
claimants and bankruptcy court. The portion of the asbestos
liability to be settled in common stock requires adjustment each
quarter based upon movements in Corning's common stock price
prior to contribution of the shares to the trust. In the third
quarter of 2007, Corning will record a charge or credit for the
change in its common stock price as of September 30, 2007
compared to $25.55, the common stock price at June 30, 2007. In
addition, Corning will record an adjustment to the asbestos
liability to reflect the change in fair value of any of the other
components of the proposed asbestos settlement.
Please note that the company may pursue other financing, restructuring and divestiture activities at any time in the future, and that the potential impact of these events is not included within Corning's third quarter 2007 guidance.
This schedule contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on current expectations and involve certain risks and uncertainties. Actual results may differ from those projected in the forward looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements is contained in the Securities and Exchange Commission filings of this Company.
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO East, January 20-22, 2010. Miami, FL.
