Last10K.com

Corning Inc Ny (GLW) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

Corning Inc Ny

CIK: 24741 Ticker: GLW

 

Exhibit 99







FOR RELEASE – July 30, 2019



Corning Reports Strong Second-Quarter Results with Year-Over-Year Growth Across All Businesses



GAAP sales and core sales increased 7% and 8%, respectively, on year-over-year basis



New Strategy & Growth Framework commenced for 2020-2023 period



CORNING, N.Y. — Corning Incorporated (NYSE: GLW) today announced results for its second-quarter 2019 ended June 30, 2019.



News Summary:

·

Strong second-quarter 2019 performance driven by year-over-year growth in every business segment

·

GAAP sales of $2.9 billion and core sales of $3.0 billion increased 7% and 8%, respectively, on a  year-over-year basis

·

GAAP EPS of $0.09 declined from $0.78 in the second quarter of 2018 driven primarily by non-cash, mark-to-market losses associated with the company’s currency-hedging contracts

·

Core EPS grew by 18% to $0.45, reflecting year-over-year sales and earnings growth across all businesses

·

Display Technologies, Environmental Technologies, and Life Sciences posted double-digit net income growth



·

All business segments on track for sales growth for full-year 2019

·

Environmental Technologies second-quarter sales growth of 15% year over year significantly exceeded expectations; results position business segment to surpass previous full-year growth expectations

·

Display Technologies second-quarter sales grew 9% year over year; glass pricing environment better than expected with full-year 2019 price declines now expected to further improve to a low- to mid-single digit percentage 

·

Optical Communications met second-quarter expectations; continues to grow approximately twice as fast as the passive optical market despite lowered full-year 2019 growth expectations

·

Specialty Materials sales grew 8% year over year; Life Sciences sales increased 6% year over year; both business segments remain on track to meet full-year growth expectations



·

2020-2023 Strategy & Growth Framework commenced following company’s successful achievement of 2016-2019 Strategy and Capital Allocation Framework

·

Returned $306 million to shareholders in second-quarter 2019, for a total of $12.6 billion under the 2016-2019 Framework

·

Announced a new $5 billion share repurchase authorization to support new Strategy & Growth Framework

© 2019 Corning Incorporated. All Rights Reserved.


-1-

 


The following information was filed by Corning Inc Ny (GLW) on Tuesday, July 30, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

¨   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  

  To  

Commission file number: 1-3247

CORNING INCORPORATED

(Exact name of registrant as specified in its charter)

`

New York

16-0393470

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

One Riverfront PlazaCorningNew York

14831

(Address of principal executive offices)

(Zip Code)

607-974-9000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes

x

No

¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

x

No

¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

x

Accelerated Filer

¨

Non-Accelerated Filer

¨

Smaller Reporting Company

¨

Emerging Growth Company

¨

If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.

Yes

¨

No

¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

¨

No

x

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

GLW

New York Stock Exchange (NYSE)

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding as of July 22, 2019

Corning’s Common Stock, $0.50 par value per share

780,866,098 shares

 


© 2019 Corning Incorporated. All Rights Reserved.

1


INDEX

PART I – FINANCIAL INFORMATION

Page

Item 1. Financial Statements

Consolidated Statements of Income (Unaudited) for the three and six months ended June 30, 2019 and 2018

3

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the three and six months ended June 30, 2019 and 2018

4

Consolidated Balance Sheets (Unaudited) at June 30, 2019 and December 31, 2018

5

Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2019 and 2018

6

Consolidated Statements of Changes to Shareholders’ Equity (Unaudited) for the three and six months ended June 30, 2019 and 2018

7

Notes to Consolidated Financial Statements (Unaudited)

9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3. Quantitative and Qualitative Disclosures About Market Risk

43

Item 4. Controls and Procedures

43

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

44

Item 1A. Risk Factors

44

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

45

Item 6. Exhibits

46

Signatures

47

 


© 2019 Corning Incorporated. All Rights Reserved.

2


CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; in millions, except per share amounts)

 

Three Months Ended

Six Months Ended

June 30,

June 30,

 

2019

2018

2019

2018

Net sales

$

2,940

$

2,747

$

5,752

$

5,247

Cost of sales

1,875

1,675

3,588

3,220

Gross margin

1,065

1,072

2,164

2,027

Operating expenses:

Selling, general and administrative expenses

414

412

815

913

Research, development and engineering expenses

249

243

498

484

Amortization of purchased intangibles

28

22

57

41

Operating income

374

395

794

589

Equity in earnings of affiliated companies

33

31

58

70

Interest income

5

9

12

22

Interest expense

(54)

(43)

(106)

(95)

Translated earnings contract (loss) gain, net (Note 10)

(107)

458

77

(164)

Other (expense) income, net

(35)

14

(44)

(23)

Income before income taxes

216

864

791

399

Provision for income taxes (Note 5)

(124)

(126)

(200)

(250)

Net income attributable to Corning Incorporated

$

92

$

738

$

591

$

149

Earnings per common share attributable to
  Corning Incorporated:

Basic (Note 6)

$

0.09

$

0.87

$

0.69

$

0.12

Diluted (Note 6)

$

0.09

$

0.78

$

0.65

$

0.12

The accompanying notes are an integral part of these consolidated financial statements.

 


© 2019 Corning Incorporated. All Rights Reserved.

3


CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited; in millions)

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

2019

2018

2019

2018

 

Net income attributable to Corning Incorporated

$

92

$

738

$

591

$

149

Foreign currency translation adjustments and other

38

(428)

(72)

(164)

Net unrealized gains (losses) on investments

1

(1)

2

Unamortized losses and prior service credits
  for postretirement benefit plans

(6)

(52)

(5)

Net unrealized (losses) gains on designated hedges

(3)

(23)

2

(24)

Other comprehensive income (loss), net of tax (Note 12)

36

(458)

(120)

(193)

Comprehensive income (loss) attributable to
  Corning Incorporated

$

128

$

280

$

471

$

(44)

The accompanying notes are an integral part of these consolidated financial statements.

 


© 2019 Corning Incorporated. All Rights Reserved.

4


CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except share and per share amounts)

 

June 30,

December 31,

2019

2018

Assets

Current assets:

Cash and cash equivalents

$

1,178

$

2,355

Trade accounts receivable, net of doubtful accounts and allowances - $71 and $64

2,103

1,940

Inventories, net of inventory reserves - $188 and $182 (Note 7)

2,291

2,037

Other current assets

739

702

Total current assets

6,311

7,034

Investments

344

376

Property, plant and equipment, net of accumulated depreciation - $12,506 and $11,932

15,137

14,895

Goodwill, net

1,938

1,936

Other intangible assets, net

1,240

1,292

Deferred income taxes (Note 5)

1,053

951

Other assets

1,552

1,021

Total Assets

$

27,575

$

27,505

 

Liabilities and Equity

Current liabilities:

Current portion of long-term debt and short-term borrowings

$

455

$

4

Accounts payable

1,297

1,456

Other accrued liabilities (Note 3 and Note 9)

1,664

1,851

Total current liabilities

3,416

3,311

Long-term debt

6,080

5,994

Postretirement benefits other than pensions (Note 8)

648

662

Other liabilities (Note 3 and Note 9)

3,910

3,652

Total liabilities

14,054

13,619

Commitments, contingencies and guarantees (Note 3)

 

 

Shareholders’ equity (Note 12):

Convertible preferred stock, Series A – Par value $100 per share;
  Shares authorized 3,100; Shares issued: 2,300

2,300

2,300

Common stock – Par value $0.50 per share; Shares authorized 3.8 billion;
  Shares issued: 1,717 million and 1,713 million

858

857

Additional paid-in capital – common stock

14,277

14,212

Retained earnings

16,399

16,303

Treasury stock, at cost; Shares held: 938 million and 925 million

(19,279)

(18,870)

Accumulated other comprehensive loss

(1,130)

(1,010)

Total Corning Incorporated shareholders’ equity

13,425

13,792

Noncontrolling interests

96

94

Total equity

13,521

13,886

Total Liabilities and Equity

$

27,575

$

27,505

The accompanying notes are an integral part of these consolidated financial statements. 


© 2019 Corning Incorporated. All Rights Reserved.

5


CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

 

Six Months Ended

June 30,

 

2019

2018

Cash Flows from Operating Activities:

Net income

$

591 

$

149 

Adjustments to reconcile net income to net cash provided by
  operating activities:

Depreciation

658 

604 

Amortization of purchased intangibles

57 

41 

Equity in earnings of affiliated companies

(58)

(70)

Deferred tax (benefit) provision

(34)

46 

Incentives and customer deposits

2 

576 

Translated earnings contract (gain) loss

(77)

164 

Unrealized translation losses on transactions

34 

38 

Changes in certain working capital items:

Trade accounts receivable

(201)

(41)

Inventories

(257)

(193)

Other current assets

(164)

(30)

Accounts payable and other current liabilities

(365)

(146)

Other, net

(62)

(103)

Net cash provided by operating activities

124 

1,035 

Cash Flows from Investing Activities:

Capital expenditures

(1,094)

(1,177)

Acquisition of businesses, net of cash received

(794)

Proceeds from settlement of initial contingent consideration asset

196 

Realized gains on translated earnings contracts

49 

36 

Other, net

11 

(16)

Net cash used in investing activities

(1,034)

(1,755)

Cash Flows from Financing Activities:

Net repayments of short-term borrowings and current portion of long-term debt

(375)

Proceeds from issuance of commercial paper, net

446 

Proceeds from issuance of long-term debt, net

596 

Proceeds from the exercise of stock options

36 

43 

Repurchases of common stock for treasury

(407)

(1,483)

Dividends paid

(362)

(348)

Other, net

25 

(11)

Net cash used in financing activities

(262)

(1,578)

Effect of exchange rates on cash

(5)

4 

Net decrease in cash and cash equivalents

(1,177)

(2,294)

Cash and cash equivalents at beginning of period

2,355 

4,317 

Cash and cash equivalents at end of period

$

1,178 

$

2,023 

The accompanying notes are an integral part of these consolidated financial statements. 


© 2019 Corning Incorporated. All Rights Reserved.

6


CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited; in millions)

(In millions)

Convertible preferred stock

Common Stock

Additional paid-in capital common

Retained Earnings

Treasury Stock

Accumulated other comprehensive loss

Total Corning Incorporated shareholders' equity

Non-controlling interests

Total

Balance, December 31, 2018

$

2,300

$

857

$

14,212

$

16,303

$

(18,870)

$

(1,010)

$

13,792

$

94

$

13,886

Net income

499

499

6

505

Other comprehensive loss

(156)

(156)

(156)

Purchase of common stock
  for treasury

(244)

(244)

(244)

Shares issued to benefit plans
  and for option exercises

31

31

31

Common Dividends
  ($0.20 per share)

(158)

(158)

(158)

Preferred Dividends
  ($10,625 per share)

(24)

(24)

(24)

Other, net (1)

(131)

(2)

(133)

(1)

(134)

Balance, March 31, 2019

$

2,300

$

857

$

14,243

$