Corning Anticipates Reporting Better-Than-Expected First-Quarter Results
Earnings Could Beat Current Consensus by $0.05 to $0.07
CORNING, N.Y.--(BUSINESS WIRE)--March 16, 2000--Corning Incorporated (NYSE: GLW), a leading manufacturer of optical-networking technologies, said it expects to report first-quarter earnings before special
items that are well above the current First Call consensus estimate of $0.48 per share. Based on its strong results through February, the company expects to report first-quarter earnings before special items in the range
of $0.53 to $0.55, approximately 50% ahead of 1999 first-quarter earnings of $0.36.
"Demand for our LEAF optical fiber used by leading long-distance providers worldwide continues to grow at a significant rate and is the primary reason for our improved first-quarter earnings outlook," said Roger G.
Ackerman, Corning's chairman and chief executive officer. The company recently announced plans to invest $750 million to expand its fiber-making capacity by 50% to keep pace with this growing demand.
The company said that it also expects to exceed the current First Call full-year earnings consensus estimate of $2.35 per share before special items by at least $0.10. The revised outlook represents growth approaching
30% on a year-to-year basis.
The revised outlook excludes the impact of the recently announced acquisition of NetOptix Corporation (NASDAQ: OPTX), a manufacturer of thin-film filters used in dense wavelength division multiplexing (DWDM)
components, which is expected to close in the second quarter. At that time, Corning will change its primary performance measure to earnings before amortization of purchased intangibles and goodwill.
As previously reported, special charges related to the acquisitions of Oak Industries and British Telecommunications' Photonics Technology Research Center will be included in Corning's first-quarter results. These items
will reduce reported first-quarter and full-year results by approximately $70 million after tax, or $0.25 per share.
Corning expects to report its first-quarter results after the close of the New York Stock Exchange on April 24.
Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the
telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for
scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.7 billion. More information on the company is available at www.corning.com.
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