CFO will reiterate fourth-quarter outlook and highlight recent acquisition
CORNING, N.Y., November 20, 2013 - Corning Incorporated (GLW) James B. Flaws, vice chairman and chief financial officer, will update investors on the company`s recent announcements at today`s UBS 2013 Global Technology Conference in Sausalito, Calif. Flaws` presentation will cover topics such as expectations for the fourth quarter, the company`s recently announced series of agreements with Samsung Display Co., Ltd., and growth in Corning`s major business segments.
Flaws will report that the company expects earnings in the fourth quarter to be down sequentially, driven by normal seasonality and a few special business factors. He will note that the fiber market is lower than anticipated entering the fourth quarter, and the company is taking actions to control costs and inventory. He also will say that sales in Corning`s Specialty Materials segment are expected to be down 20% year over year in quarter four, driven by the supply chain inventory build of Corning® Gorilla® Glass in the fourth quarter last year.
"Gorilla Glass continues to perform well in the cover glass market," Flaws will tell investors. "Corning`s Gorilla Glass can now be found on more than 2 billion consumer electronics devices in use today. The popularity of our cover glass continues to grow, as we constantly develop material compositions that enhance its legendary durability and scratch resistance. Corning continues to innovate with Apple to advance the state of the art with even tougher versions of our glass.
"As we look ahead, with supply and demand in balance," Flaws will say, "we expect our volume to increase, driven by growth in the end market for smartphones, tablets, and notebook computers."
Flaws also will summarize the strategic and financial benefits Corning expects from the closing of its series of agreements with Samsung Display. He will note that the company expects full ownership of Samsung Corning Precision Materials Co., Ltd. will provide immediate and significant benefits.
"There are many advantages to owning these assets," Flaws will say, "including greater flexibility in meeting the needs of our customers, lower capital spending, increased cash flow, and cost savings from synergies.
"We expect that these synergies will equate to $460 million through 2017, and the future free cash flow will enable us to pursue additional share repurchases," Flaws will say. "We anticipate the combination of this additional income and share repurchases will provide accretion of about 20% in 2014 and 2015 on a fully diluted basis."
Live audio webcast: To listen to Corning`s comments at the conference via webcast, go to www.corning.com/investor_relations and click "Investor Events" on the left.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning`s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, 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; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed 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.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 160 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.
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