Exhibit 99





FOR RELEASE – JANUARY 27, 2021



Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter with

Growth in All Segments



Achieved 17% year-over-year core sales growth in Q4



Expanded margins in second half and generated $948 million in free cash flow in 2020



Expects continued momentum across all businesses in 2021



CORNING, N.Y. – Corning Incorporated (NYSE: GLW) today announced results for the fourth quarter and full year ended Dec. 31, 2020.



Fourth-quarter financial performance

·

GAAP sales of $3.4 billion and GAAP EPS of $0.28

·

Core sales of $3.3 billion, up 11% sequentially and 17% year over year

·

Core EPS of $0.52, up 21% sequentially and 13% year over year

·

Free cash flow of $464 million and $948 million cumulatively for the year

·

Strong execution across the company’s focused portfolio drove sales and net income growth in all segments:

o

Sequentially, core sales grew 11% and operating margin grew 18%, both above expectations

o

Core operating margin was 19.4%, up 110 basis points sequentially 

o

Life Sciences and Environmental Technologies delivered the largest sequential sales growth, with 23% and 17% growth respectively

o

Organic sales, which exclude $163 million in consolidated sales from Hemlock Semiconductor, grew 11% year over year 

o

Year over year, Specialty Materials sales grew 20%, Environmental Technologies sales grew 19% both strongly outperforming their underlying markets and Optical Communications returned to growth with continued growth expected



Wendell P. Weeks, chairman and chief executive officer, said:



“We delivered outstanding fourth-quarter results, as each of our businesses grew sales and profits year over year.” Weeks continued, “2020 was an incredibly difficult year as the world dealt with the pandemic, economic uncertainty, and social unrest. Throughout the year, we focused on serving our customers, executing our strategic priorities, and protecting our people. We gained sales-growth momentum, expanded margins in the second half, and generated significant free cash flow. Our investments in our people and technology, along with our deep relevance across key markets, are creating opportunities for ‘more Corning.’”



Weeks added, “We continue to strengthen the company and remain committed to our employees, communities, customers, and shareholders. Corning is proud to be creating life-changing technologies that contribute to keeping people safe and that help society address the challenges of the pandemic.”



© 2021 Corning Incorporated. All Rights Reserved.

-1-

 


 

 

Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter

Page 2


Financial Outlook


Tony Tripeny, executive vice president and chief financial officer, said, “In 2020, we successfully navigated a very challenging year. We strengthened our balance sheet, achieved growth in the second half, and generated free cash flow of $948 million for the year.”



Tripeny continued, “We expect year-over-year growth to accelerate in the first quarter of 2021. We expect core sales of $3.0 billion to $3.2 billion – compared with $2.5 billion in the first quarter last year – and EPS of $0.40 to $0.44, which is double last year’s first-quarter EPS at the low end of the range. We will continue to focus on operational excellence, cash-flow generation, and prudent capital allocation.”



Market-Access Platform Highlights

Corning holds a leadership position in each of the markets addressed by its five Market-Access Platforms. Throughout 2020, the company advanced important growth initiatives and reported the following highlights:



·

Life Sciences – Corning deployed its broad Life Sciences capabilities to combat the pandemic by supplying technologies that help customers develop novel treatments and vaccines, provide mass testing, and accelerate vaccine production. In the second quarter, Corning was awarded $204 million in funding from the Biomedical Advanced Research and Development Authority to substantially expand domestic manufacturing capacity for Corning Valor® Glass vials. In the fourth quarter, Corning shipped Valor Glass vials to multiple COVID-19 vaccine manufacturers that support more than 100 million doses. Corning also received a $15 million award from the U.S. Department of Defense and U.S. Department of Health and Human Services to further expand domestic production capacity for robotic pipette tips used in support of COVID-19 diagnostic testing. The company was also recognized by BioNTech for its role in the successful development of its COVID-19 vaccine.

·

Mobile Consumer Electronics – Innovation adoption drove Specialty Materials sales up 18% year over year despite the declining smartphone market. The company launched Corning® Gorilla® Glass Victus, the toughest Gorilla Glass yet, which is featured on six Samsung devices. Corning also invented the world’s first transparent, color-free glass-ceramic, which is featured on the front cover of the latest iPhone. Apple and Corning partnered to develop and scale manufacturing of Ceramic Shield, which offers unparalleled durability and toughness. Strength in the IT market contributed to sales growth as work- and learn-from-home trends remained pervasive throughout the year, driving demand for tablets and touch-screen laptops.

·

Automotive – Environmental Technologies is recovering faster than its markets, driven by more Corning content in both automotive and diesel. Fourth-quarter results were highlighted by year-over-year growth in gasoline particulate filter sales as adoption expanded in Europe and China. Additionally, Groupe Renault honored Corning with a 2020 Supplier Award for innovation for Corning® FLORA® substrates. Mercedes-Benz recently debuted the MBUX Hyperscreen dashboard display system featuring Gorilla Glass for Automotive.

·

Optical Communications – Optical Communications returned to growth – and expects growth to continue – as customers increase spending to support growing bandwidth requirements. In 2020, the company introduced new and innovative solutions that help speed the deployment of 5G. Corning launched its Evolv™ 5G-ready connectivity solutions featuring compact, easy-to-install terminals that connect the fiber network to neighborhoods and businesses. Operators can save up to $500 at each terminal site by dramatically lowering installation costs and speeding deployment. By collaborating with Verizon, Corning is enabling 5G mmWave indoor deployments for enterprise customers. Additionally, Corning is working with Qualcomm Technologies to deliver indoor networks that are 5G-ready, easy-to-install, and affordable and with EnerSys to simplify the delivery of fiber and electrical power to small-cell wireless sites.

© 2021 Corning Incorporated. All Rights Reserved.

-2-

 


 

 

Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter

Page 3



·

Display – Retail demand for TV and IT products remains strong. Demand for large-size TVs continues to grow – 75-inch sets were up more than 60% for the full year. Large TVs are most efficiently made on Gen 10.5 fabs and Corning is well-positioned to capture that growth with its Gen 10.5 plants in China, including its two newest Gen 10.5 facilities, in Wuhan and Guangzhou, which are now expanding production to meet customer demand. 



Fourth-Quarter and Full-Year 2020 Results and Comparisons
(In millions, except per-share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Q4 2020

 

Q3 2020

 

%
change

 

Q4 2019

 

%
change

 

 

Full-year 2020

 

 

Full-year 2019

 

%
change

GAAP Net Sales

 

$

3,350 

 

$

3,001 

 

12% 

 

$

2,817 

 

19% 

 

$

11,303 

 

$

11,503 

 

(2%)

GAAP Net Income

 

$

252 

 

$

427 

 

(41%)

 

$

32 

 

**

 

$

512 

 

$

960 

 

(47%)

GAAP Diluted EPS

 

$

0.28 

 

$

0.48 

 

(42%)

 

$

0.01 

 

**

 

$

0.54 

 

$

1.07 

 

(50%)

Core Sales*

 

$

3,328 

 

$

3,007 

 

11% 

 

$

2,851 

 

17% 

 

$

11,452 

 

$

11,656 

 

(2%)

Core Net Income*

 

$

462 

 

$

380 

 

22% 

 

$

406 

 

14% 

 

$

1,237 

 

$

1,578 

 

(22%)

Core EPS*

 

$

0.52 

 

$

0.43 

 

21% 

 

$

0.46 

 

13% 

 

$

1.39 

 

$

1.76 

 

(21%)



*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. The largest difference between our GAAP and core results stemmed from restructuring charges, which are primarily non-cash, as well as non-cash, mark-to-market losses associated with the company’s currency-hedging contracts.

**Not Meaningful



Fourth-Quarter Segment Results



Display Technologies







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Q4 2020

 

Q3 2020

 

%
change

 

Q4 2019

 

%
change

 

 

Full-year 2020

 

Full-year 2019

%
change

Net Sales

 

$

841 

 

$

827 

 

2% 

 

$

795 

 

6% 

 

$

3,172 

 

$

3,254 

 

(3%)

Net Income Before Tax

 

$

274 

 

$

248 

 

10% 

 

$

227 

 

21% 

 

$

907 

 

$

993 

 

(9%)

Net Income  

 

$

217 

 

$

196 

 

11% 

 

$

180 

 

21% 

 

$

717 

 

$

786 

 

(9%)



In Display Technologies, fourth-quarter sales were $841 million, up 2% sequentially and 6% year over year, and net income was $217 million, up 11% sequentially and 21% year over year. Corning’s volume grew by a low-single digit percentage sequentially. Sequential price declines were very moderate, as expected.



Optical Communications







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Q4 2020

 

Q3 2020

 

%
change

 

Q4 2019

 

%
change

 

 

Full-year 2020

 

Full-year 2019

%
change

Net Sales

 

$

976 

 

$

909 

 

7% 

 

$

903 

 

8% 

 

$

3,563 

 

$

4,064 

 

(12%)

Net Income Before Tax

 

$

179 

 

$

147 

 

22% 

 

$

81 

 

121% 

 

$

467 

 

$

639 

 

(27%)

Net Income  

 

$

141 

 

$

115 

 

23% 

 

$

62 

 

127% 

 

$

366 

 

$

489 

 

(25%)







© 2021 Corning Incorporated. All Rights Reserved.

-3-

 


 

 

Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter

Page 4



Optical Communications fourth-quarter sales were $976 million, up 7% sequentially and 8% year over year, driven by strength in both carrier and enterprise businesses. Fourth-quarter net income was $141 million, up 23% sequentially and 127% year over year, driven by increased volume and favorable cost performance. Management expects Optical Communications to grow in 2021 as customers increase investments in their optical networks.



Environmental Technologies







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Q4 2020

 

Q3 2020

 

%
change

 

Q4 2019

 

%
change

 

 

Full-year 2020

 

Full-year 2019

%
change

Net Sales

 

$

445 

 

$

379 

 

17% 

 

$

374 

 

19% 

 

$

1,370 

 

$

1,499 

 

(9%)

Net Income Before Tax

 

$

118 

 

$

87 

 

36% 

 

$

81 

 

46% 

 

$

249 

 

$

333 

 

(25%)

Net Income  

 

$

93 

 

$

69 

 

35% 

 

$

64 

 

45% 

 

$

197 

 

$

263 

 

(25%)



Environmental Technologies fourth-quarter sales were $445 million, up 17% sequentially and 19% year over year driven by improving markets and more Corning content. Greater adoption of GPFs and diesel filters to meet regulations in China increased Corning’s total addressable market.



Specialty Materials







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Q4 2020

 

Q3 2020

 

%
change

 

Q4 2019

 

%
change

 

 

Full-year 2020

 

Full-year 2019

%
change

Net Sales

 

$

545 

 

$

570 

 

(4%)

 

$

453 

 

20% 

 

$

1,884 

 

$

1,594 

 

18% 

Net Income Before Tax

 

$

173 

 

$

184 

 

(6%)

 

$

119 

 

45% 

 

$

536 

 

$

383 

 

40% 

Net Income  

 

$

136 

 

$

146 

 

(7%)

 

$

94 

 

45% 

 

$

423 

 

$

302 

 

40% 



Specialty Materials fourth-quarter sales were $545 million, up 20% year over year, due to strong demand for premium cover materials, strength in the IT market, and demand for semiconductor-related materials. Full-year sales increased 18% to $1.9 billion.  



Life Sciences







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Q4 2020

 

Q3 2020

 

%
change

 

Q4 2019

 

%
change

 

 

Full-year 2020

 

Full-year 2019

%
change

Net Sales

 

$

274 

 

$

223 

 

23% 

 

$

256 

 

7% 

 

$

998 

 

$

1,015 

 

(2%)

Net Income Before Tax

 

$

53 

 

$

36 

 

47% 

 

$

49 

 

8% 

 

$

176 

 

$

190 

 

(7%)

Net Income  

 

$

42 

 

$

28 

 

50% 

 

$

38 

 

11% 

 

$

139 

 

$

150 

 

(7%)



Life Sciences fourth-quarter sales grew 23% sequentially and 7% year over year to $274 million. Segment results reflect strong demand for research consumables and bioproduction products.



Upcoming Investor Events (Virtual)

On Feb. 11, Corning will attend the Goldman Sachs 2021 Virtual Tech and Internet Conference. On Feb. 23, Corning will attend the UBS West Coast Conference. And on Mar. 1, Corning will attend the Morgan Stanley Technology, Media, and Telecom Conference.

© 2021 Corning Incorporated. All Rights Reserved.

-4-

 


 

 

Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter

Page 5



Fourth-Quarter Conference Call Information

The company will host a fourth-quarter conference call on Wednesday, Jan. 27, at 8:30 a.m. EST. To participate, please call toll free (877) 710-0209 or for international access, call (315) 625-3068 approximately 10 to15 minutes prior to the start of the call. The Access Code is 128 5416. To listen to a live audio webcast of the call, go to Corning’s website at http://www.corning.com/investor_relations, click “Events,” and follow the instructions.



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.

© 2021 Corning Incorporated. All Rights Reserved.

-5-

 


 

 

Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter

Page 6



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.  The Company does not undertake to update forward-looking statements.  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 ultimate impact across our businesses on demand, operations and our global supply chains; the effects of acquisitions, dispositions and other similar transactions; global business, financial, economic and political conditions; tariffs and import duties; currency fluctuations between the U.S. dollar and other currencies, primarily the Japanese yen, new Taiwan dollar, euro, Chinese yuan and South Korean won; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; possible disruption in commercial activities due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; unanticipated disruption to equipment, facilities, IT systems or operations; effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; rate of technology change; ability to enforce patents and protect intellectual property and trade secrets; adverse litigation; product and components performance issues; retention of key personnel; customer ability, most notably in the Display Technologies segment, to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; loss of significant customers; changes in tax laws and regulations including the 2017 Tax Cuts and Jobs Act; the impacts of audits by taxing authorities; the potential impact of legislation, government regulations, and other government action and investigations; and other risks detailed in Corning’s SEC filings. 



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 SEC regarding the use of company websites and social media channels to disclose material information, Corning Incorporated (“Corning”) wishes to notify investors, media, and other interested parties that it uses its website (http://www.corning.com/worldwide/en/about-us/news-events.html) to publish important information about the company, including information that may be deemed material to investors, or supplemental to information contained in this or other press releases. The list of websites and social media channels that the company uses may be updated on Corning’s media and website from time to time. Corning encourages investors, media, and other interested parties to review the information Corning may publish through its website and social media channels as described above, in addition to the company’s SEC filings, press releases, conference calls, and webcasts.

© 2021 Corning Incorporated. All Rights Reserved.

-6-

 


 

 

Corning Reports Full-Year 2020 Results Highlighted by Strong Fourth Quarter

Page 7



About Corning Incorporated

Corning (www.corning.com) is one of the world's leading innovators in materials science, with a 170-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people's lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning's capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping our customers capture new opportunities in dynamic industries. Today, Corning's markets include optical communications, mobile consumer electronics, display, automotive, and life sciences.



Media Relations Contact:
Gabrielle Bailey
(607) 974-6394
baileygr@corning.com

Investor Relations Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com



Follow Corning: RSS Feeds | Facebook | Twitter | YouTube





© 2021 Corning Incorporated. All Rights Reserved.

-7-

 


 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME 

(Unaudited; in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

   

 

Three months ended

 

Year ended



 

December 31,

 

December 31,

   

 

2020

 

2019

 

2020

 

2019

Net sales

 

$

3,350 

 

$

2,817 

 

$

11,303 

 

$

11,503 

Cost of sales

 

 

2,137 

 

 

1,963 

 

 

7,772 

 

 

7,468 



 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

1,213 

 

 

854 

 

 

3,531 

 

 

4,035 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

471 

 

 

401 

 

 

1,747 

 

 

1,585 

Research, development and engineering expenses

 

 

232 

 

 

278 

 

 

1,154 

 

 

1,031 

Amortization of purchased intangibles

 

 

34 

 

 

28 

 

 

121 

 

 

113 



 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

476 

 

 

147 

 

 

509 

 

 

1,306 



 

 

 

 

 

 

 

 

 

 

 

 

Equity in (losses) earnings of affiliated companies

 

 

(42)

 

 

(64)

 

 

(25)

 

 

17 

Interest income

 

 

 

 

 

 

15 

 

 

21 

Interest expense

 

 

(75)

 

 

(60)

 

 

(276)

 

 

(221)

Translated earnings contract (loss) gain, net

 

 

(43)

 

 

85 

 

 

(38)

 

 

248 

Transaction-related gain, net

 

 

 

 

 

 

 

 

498 

 

 

 

Other income (expense), net

 

 

11 

 

 

(96)

 

 

(60)

 

 

(155)



 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

330 

 

 

17 

 

 

623 

 

 

1,216 

(Provision) benefit for income taxes

 

 

(78)

 

 

15 

 

 

(111)

 

 

(256)



 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Corning Incorporated

 

$

252 

 

$

32 

 

$

512 

 

$

960 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share attributable to Corning Incorporated:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.30 

 

$

0.01 

 

$

0.54 

 

$

1.11 

Diluted

 

$

0.28 

 

$

0.01 

 

$

0.54 

 

$

1.07 



 

 

 

 

 

 

 

 

 

 

 

 



© 2021 Corning Incorporated. All Rights Reserved.

-8-

 


 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

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







 

 

 

 

 



 

 

 

 

 



December 31,



2020

 

2019

Assets

 

 

 

 

 



 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

2,672 

 

$

2,434 

Trade accounts receivable, net of doubtful accounts 

 

2,133 

 

 

1,836 

Inventories, net of inventory reserves

 

2,438 

 

 

2,320 

Other current assets

 

761 

 

 

873 

Total current assets

 

8,004 

 

 

7,463 



 

 

 

 

 

Property, plant and equipment, net of accumulated depreciation  

 

15,766 

 

 

15,337 

Goodwill, net

 

2,460 

 

 

1,935 

Other intangible assets, net

 

1,308 

 

 

1,185 

Deferred income taxes

 

1,121 

 

 

1,157 

Other assets

 

2,116 

 

 

1,821 



 

 

 

 

 

Total Assets

$

30,775 

 

$

28,898 



 

 

 

 

 

Liabilities and Equity

 

 

 

 

 



 

 

 

 

 

Current liabilities:

 

 

 

 

 

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

$

158 

 

$

11 

Accounts payable

 

1,174 

 

 

1,587 

Other accrued liabilities

 

2,435 

 

 

1,923 

Total current liabilities

 

3,767 

 

 

3,521 



 

 

 

 

 

Long-term debt

 

7,838 

 

 

7,729 

Postretirement benefits other than pensions

 

727 

 

 

671 

Other liabilities

 

4,995 

 

 

3,980 

Total liabilities

 

17,327 

 

 

15,901 



 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

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: 1,726 million and 1,718 million

 

863 

 

 

859 

Additional paid-in capital – common stock

 

14,642 

 

 

14,323 

Retained earnings

 

16,120 

 

 

16,408 

Treasury stock, at cost; shares held: 961 million and 956 million

 

(19,928)

 

 

(19,812)

Accumulated other comprehensive loss

 

(740)

 

 

(1,171)

Total Corning Incorporated shareholders’ equity

 

13,257 

 

 

12,907 

Noncontrolling interests

 

191 

 

 

90 

Total equity

 

13,448 

 

 

12,997 



 

 

 

 

 

Total Liabilities and Equity

$

30,775 

 

$

28,898 



© 2021 Corning Incorporated. All Rights Reserved.

-9-

 


 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended

 

Year ended



 

December 31,

 

December 31,



 

2020

 

2019

 

2020

 

2019

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

252 

 

$

32 

 

$

512 

 

$

960 

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

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

358 

 

 

364 

 

 

1,399 

 

 

1,390 

Amortization of purchased intangibles

 

 

34 

 

 

28 

 

 

121 

 

 

113 

Loss on disposal of assets

 

 

31 

 

 

78 

 

 

138 

 

 

123 

Severance charges

 

 

 

 

38 

 

 

148 

 

 

63 

Severance payments

 

 

(21)

 

 

(17)

 

 

(147)

 

 

(28)

Share-based compensation expense

 

 

80 

 

 

13 

 

 

207 

 

 

56 

Equity in losses (earnings) of affiliated companies

 

 

42 

 

 

64 

 

 

25 

 

 

(17)

Dividends received from affiliated companies

 

 

 

 

 

106 

 

 

 

 

106 

Deferred tax provision (benefit)

 

 

76 

 

 

(106)

 

 

(20)

 

 

(191)

Customer incentives and deposits, net

 

 

37 

 

 

140 

 

 

221 

 

 

142 

Pension plan contributions

 

 

(141)

 

 

(2)

 

 

(221)

 

 

(2)

Translated earnings contract loss (gain)

 

 

43 

 

 

(85)

 

 

38 

 

 

(248)

Unrealized translation (gain) loss on transactions

 

 

(79)

 

 

(53)

 

 

(133)

 

 

33 

Asbestos claim payments

 

 

(95)

 

 

 

 

 

(130)

 

 

(50)

Tax assessment refunds

 

 

 

 

 

 

 

 

101 

 

 

 

Asset impairment

 

 

 

 

 

 

 

 

217 

 

 

 

Transaction-related gain

 

 

 

 

 

 

 

 

(498)

 

 

 

Gain on investment

 

 

(107)

 

 

 

 

 

(107)

 

 

 

Changes in certain working capital items:

 

 

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

 

 

 

217 

 

 

(274)

 

 

48 

Inventories

 

 

183 

 

 

40 

 

 

423 

 

 

(298)

Other current assets

 

 

(12)

 

 

(80)

 

 

(31)

 

 

(300)

Accounts payable and other current liabilities

 

 

196 

 

 

85 

 

 

57 

 

 

Other, net

 

 

(117)

 

 

156 

 

 

133 

 

 

130 

Net cash provided by operating activities

 

 

774 

 

 

1,018 

 

 

2,180 

 

 

2,031 



 

 

`

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(391)

 

 

(376)

 

 

(1,377)

 

 

(1,978)

Proceeds from sale or disposal of assets

 

 

10 

 

 

 

 

 

37 

 

 

 

Sale of equipment for related party

 

 

 

 

 

16 

 

 

 

 

 

78 

Realized gains on translated earnings contracts

 

 

 

 

16 

 

 

12 

 

 

55 

Other, net

 

 

 

 

(13)

 

 

18 

 

 

(46)

Net cash used in investing activities

 

 

(378)

 

 

(357)

 

 

(1,310)

 

 

(1,891)



 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(100)

 

 

(300)

 

 

(100)

 

 

(300)

Retirement of long-term debt

 

 

(121)

 

 

 

 

 

(121)

 

 

 

Proceeds from issuance of long-term debt, net

 

 

31 

 

 

1,482 

 

 

243 

 

 

1,831 

Proceeds from exercise of stock options

 

 

75 

 

 

15 

 

 

124 

 

 

58 

Repurchases of common stock for treasury

 

 

 

 

 

(232)

 

 

(105)

 

 

(940)

Dividends paid

 

 

(200)

 

 

(188)

 

 

(787)

 

 

(742)

Other, net

 

 

 

 

 

 

17 

 

 

46 

Net cash (used in) provided by financing activities

 

 

(314)

 

 

786 

 

 

(729)

 

 

(47)

Effect of exchange rates on cash

 

 

76 

 

 

16 

 

 

97 

 

 

(14)

Net increase in cash and cash equivalents

 

 

158 

 

 

1,463 

 

 

238 

 

 

79 

Cash and cash equivalents at beginning of year

 

 

2,514 

 

 

971 

 

 

2,434 

 

 

2,355 

Cash and cash equivalents at end of year

 

$

2,672 

 

$

2,434 

 

$

2,672 

 

$

2,434 

© 2021 Corning Incorporated. All Rights Reserved.

-10-

 


 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

(Unaudited)



GAAP Earnings per Common Share



The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts):







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended

 

Year ended



 

December 31,

 

December 31,



 

2020

 

2019

 

2020

 

2019

Net income attributable to Corning Incorporated

 

$

252 

 

$

32 

 

$

512 

 

$

960 

Less:  Series A convertible preferred stock dividend

 

 

25 

 

 

24 

 

 

98 

 

 

98 

Net income available to common stockholders – basic

 

 

227 

 

 

 

 

414 

 

 

862 

Add:  Series A convertible preferred stock dividend 

 

 

25 

 

 

 

 

 

 

 

 

98 

Net income available to common stockholders - diluted

 

$

252 

 

$

 

$

414 

 

$

960 



 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

 

763 

 

 

764 

 

 

761 

 

 

776 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options and other dilutive securities

 

 

16 

 

 

 

 

11 

 

 

Series A convertible preferred stock

 

 

115 

 

 

 

 

 

 

 

 

115 

Weighted-average common shares outstanding - diluted

 

 

894 

 

 

771 

 

 

772 

 

 

899 

Basic earnings per common share

 

$

0.30 

 

$

0.01 

 

$

0.54 

 

$

1.11 

Diluted earnings per common share

 

$

0.28 

 

$

0.01 

 

$

0.54 

 

$

1.07 



Core Earnings per Common Share



The following table sets forth the computation of core basic and core diluted earnings per common share (in millions, except per share amounts):





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended

 

Year ended



 

December 31,

 

December 31,



 

2020

 

2019

 

2020

 

2019

Core net income attributable to Corning Incorporated

 

$

462 

 

$

406 

 

$

1,237 

 

$

1,578 

Less:  Series A convertible preferred stock dividend

 

 

25 

 

 

24 

 

 

98 

 

 

98 

Core net income available to common stockholders - basic

 

 

437 

 

 

382 

 

 

1,139 

 

 

1,480 

Add:  Series A convertible preferred stock dividend

 

 

25 

 

 

24 

 

 

98 

 

 

98 

Core net income available to common stockholders - diluted

 

$

462 

 

$

406 

 

$

1,237 

 

$

1,578 



 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding - basic

 

 

763 

 

 

764 

 

 

761 

 

 

776 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options and other dilutive securities

 

 

16 

 

 

 

 

11 

 

 

Series A convertible preferred stock

 

 

115 

 

 

115 

 

 

115 

 

 

115 

Weighted-average common shares outstanding - diluted

 

 

894 

 

 

886 

 

 

887 

 

 

899 

Core basic earnings per common share

 

$

0.57 

 

$

0.50 

 

$

1.50 

 

$

1.91 

Core diluted earnings per common share

 

$

0.52 

 

$

0.46 

 

$

1.39 

 

$

1.76 

 

© 2021 Corning Incorporated. All Rights Reserved.

-11-

 


 

 

Use of Non-GAAP Financial Measures



CORE PERFORMANCE MEASURES 

In managing the Company and assessing our financial performance, we adjust certain measures provided by our consolidated financial statements to exclude specific items to report core performance measures.  These items include gains and losses on our translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment losses, and other charges and credits, certain litigation-related expenses, pension mark-to-market adjustments and other items which do not reflect on-going operating results of the Company or our equity affiliates.  Corning utilizes constant-currency reporting for our Display Technologies, Environmental Technologies, Specialty Materials and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and the euro.  The Company believes that the use of constant-currency reporting allows investors to understand our results without the volatility of currency fluctuations and reflects the underlying economics of the translated earnings contracts used to mitigate the impact of changes in currency exchange rates on our earnings and cash flows.  Corning also believes that reporting core performance measures provides investors greater transparency to the information used by our management team to make financial and operational decisions.



Core performance measures are not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”).  We believe investors should consider these non-GAAP measures in evaluating our results as they are more indicative of our core operating performance and how management evaluates our operational results and trends.  These measures are not, and should not be viewed as a substitute for, GAAP reporting measures.  With respect to the Company’s outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because the Company does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of the Company’s control.  As a result, the Company is unable to provide outlook information on a GAAP basis.



For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, please see “Reconciliation of Non-GAAP Measures”.





© 2021 Corning Incorporated. All Rights Reserved.

-12-

 


 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended December 31, 2020 and 2019

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







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three months ended December 31, 2020



 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 



 

 

 

 

Equity

 

before

 

 

 

Effective

 

 

 



 

Net

 

(losses)

 

income

 

Net

 

tax

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share

As reported

 

$

3,350 

 

$

(42)