Corning reports strong first quarter 2019 financial results

Corning Incorporated announced results for its first quarter 2019 ended March 31, 2019.

News Summary:

Excellent first-quarter results established strong start to 2019

–   GAAP sales of 2.8 billion USD and core sales of 2.9 billion USD increased 12 percent and 13 percent, respectively, year over year

–   GAAP EPS of 0.55 USD increased 1.27 USD versus 2018, reflecting a non-cash, mark-to-market gain associated with the company’s currency-hedging contracts

–   Core EPS grew to 0.40 USD, a 29 percent year-over-year increase, reflecting sales and earnings growth across all business segments

Ongoing technology and manufacturing investments drive additional growth in 2019

–   Continued growth expected in Optical Communications, Specialty Materials, Environmental Technologies, and Life Sciences business segments

–   Display Technologies continues to deliver stable returns, with first quarter sales and net income up double digits year over year, and the best first quarter glass pricing environment in well over a decade

On track to achieve goals of 2016-2019 Strategy and Capital Allocation Framework

–   Returned 414 million USD to shareholders in first quarter 2019, for a total of 12.3 billion USD since the Framework’s introduction

–   Investing to position businesses for short- and long-term sales growth

“We built on our 2018 momentum by delivering double-digit sales and earnings growth in the first quarter,” said Wendell P. Weeks, chairman, chief executive officer and president. “Our investments in product development and manufacturing capacity delivered sales and profit growth in all our markets, and we’re confident that Corning is positioned to create additional value.

“In October 2015 we outlined a Strategic Framework to focus our portfolio, extend our market leadership, and increase shareholder returns. Having delivered another strong quarter, the benefits of our investments continue to be evident in our financial performance and we are within striking distance of fully delivering on the goals of this Framework.”

Strategy and Capital Allocation Framework Progress

Corning’s Framework outlines the company’s leadership priorities. Under the Framework, Corning plans to deliver more than 12.5 billion USD to shareholders while investing 10 billion USD in growth opportunities. Since announcing the Framework, the company has returned 12.3 USD billion to shareholders, including 414 million USD in first quarter 2019.

“We expect to maintain momentum by continuing to invest in our focused and cohesive portfolio to drive growth,” Weeks continued. “During the first quarter, progress on commercializing our innovations demonstrates clear leadership across our market-access platforms, as well as alignment with important industry trends.” Highlights include:

Optical Communications: earned global industry recognition for product and technology innovations, including RocketRibbon™ extreme-density cable, which enables up to 30 percent faster fiber installation in hyperscale data centers, and ClearTrack™ Hallway Fiber Pathway, which enables fast and easy fiber-optic installation with minimal disruption for tenants in multi-dwelling units;

Automotive: ramped capacity of DuraTrap® GC filters to meet accelerating gasoline particulate filter (GPF) demand; garnered strong customer engagement with industry’s first AutoGradeTM cover glass solutions for automotive interiors, extending Corning’s Gorilla® Glass for Automotive portfolio;

Mobile Consumer Electronics: continued progress on goal of doubling sales over the next several years with adoption of premium glass and other innovative solutions for smartphones, laptops, tablets and wearables; launched the Amplify line of glass screen protectors with Otterbox; gained traction in emerging regions with several device launches in India and Turkey;

Life Sciences Vessels: growth exceeded market, fuelled by leadership in cell-culture solutions; continued to advance toward FDA approval of Valor® glass packaging with key pharmaceutical development partners.

In addition, during the first quarter Corning announced 518 U.S. patents issued in 2018, strengthening the company’s leadership in glass, ceramics, optical physics and proprietary manufacturing technology.