Corning Blows Estimates Away - JGH
July 17, 2000 07:08
Corning Pro Forma Earnings Per Share Up 80% in Second Quarter
CORNING, N.Y.--(BUSINESS WIRE)--July 17, 2000--
Strong Demand for Corning's High-Tech Products Drives Results,
Company's Full-Year Earnings Outlook Increases
Corning Incorporated (NYSE: GLW) reported today that its second quarter pro forma earnings per share increased 80%. The performance was driven by strong demand for Corning's high-technology products, particularly its high-data rate optical fiber and cable, and LCD flat-panel display glass.
The company reported second-quarter pro forma earnings of $0.94 per share, compared with $0.52 per share in the same quarter of 1999. Pro forma net income for the second quarter of 2000 totaled $271.1 million, approximately double the $136.5 million from the second quarter of 1999. Pro forma net income excludes amortization of purchased intangibles and goodwill, purchased in-process research and development, one-time acquisition costs, discontinued operations and other non-recurring items.
"Clearly, this is a blockbuster quarter for Corning," said Roger G. Ackerman, Corning's chairman and chief executive officer. "We are living in an increasingly bandwidth-intensive economy and our financial performance is evidence that Corning has truly emerged as a world-leading provider of technologies and products in the optical layer, where fiber joins with photonic devices to power today's optical networks."
The company also announced that it is raising its full-year pro forma earnings per share outlook to a range of $3.15 - $3.25, an increase of approximately 60% versus last year's $2.00.
"This revised outlook reflects our very strong performance this quarter and confidence for continued unprecedented demand for Corning's market-leading products through year-end," said Ackerman. "Our strategy is working. We are winning significant contracts, making the right strategic acquisition decisions, investing in capacity, and continuing with aggressive research and development to ensure our future success."
Second quarter sales were $1.78 billion, an increase of 57% over 1999 second quarter sales of $1.13 billion. Excluding the impact of acquisitions, sales increased 41%. Overall demand for optical fiber increased with a year-over-year growth rate of approximately 40%. Sales in Photonic Technologies nearly doubled, led by demand for the company's optical amplifiers. Sales of flat-panel display glass used primarily used in computer monitors grew more than 70%.
Equity earnings were up 28% in the quarter due primarily to strong results by Samsung Corning Precision Glass Company, Ltd., a Korean manufacturer of flat-panel LCD display glass, and Samsung-Corning Company Ltd., a Korean manufacturer of glass for conventional TV and computer monitors.
Corning also recorded a second quarter charge of $50.7 million after tax, or $0.17 per share, related to recent acquisitions. Including this non-recurring item and the amortization of purchased intangibles and goodwill, Corning's net income for the second quarter of 2000 totaled $149.2 million, or $0.52 per share. This compares with second quarter 1999 net income of $131.0 million, or $0.50 per share.
Established in 1851, Corning Incorporated (www.corning.com) 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.
Forward-Looking and Cautionary Statements
Except for historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission.
Corning Incorporated and Subsidiary Companies
Pro Forma Consolidated Statements of Income
Excluding Amortization of Purchased Intangibles and Goodwill,
Purchased In-Process Research and Development,
Acquisition-Related Costs and Non-Recurring Items
(In millions, except per share amounts)
Six Months Ended June 30, Three Months Ended June 30,
------------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
Revenues
Net sales $ 3,127.0 $ 2,126.7 $ 1,775.6 $ 1,129.7
Royalty, interest,
and dividend income 50.4 21.3 26.9 11.3
---------- --------- ---------- ---------
3,177.4 2,148.0 1,802.5 1,141.0
Deductions
Cost of sales 1,817.7 1,307.2 1,029.9 693.3
Selling, general and
administrative
expenses 457.8 303.4 258.0 151.2
Research, development
and engineering
expenses 230.2 171.9 120.1 88.5
Interest expense 52.7 40.1 28.5 20.4
Other, net 32.7 20.6 11.8 10.7
---------- --------- ---------- ---------
Income before taxes 586.3 304.8 354.2 176.9
Taxes on income 190.0 92.6 114.9 53.8
---------- --------- ---------- ---------
Income before minority
interest and equity
earnings 396.3 212.2 239.3 123.1
Minority interest
in earnings
of subsidiaries (10.1) (27.5) (7.5) (17.4)
Dividends on convertible
preferred securities
of subsidiary (2.3)
Equity in earnings
of associated companies 73.2 52.0 39.3 30.8
---------- --------- ---------- ---------
Pro Forma Net Income $ 459.4 $ 234.4 $ 271.1 $ 136.5
========= ========= ========== =========
Pro Forma Basic Earnings
Per Share $ 1.66 $ 0.92 $ 0.96 $ 0.53
========== ========= ========== =========
Pro Forma Diluted
Earnings Per Share $ 1.62 $ 0.90 $ 0.94 $ 0.52
========== ========= ========== =========
Dividends Declared $ 0.36 $ 0.36 $ 0.18 $ 0.18
========== ========= ========== =========
Shares used in computing
pro forma earnings per share
Pro forma basic
earnings per share 275.9 252.8 281.5 257.3
========== ========= ========== =========
Pro forma diluted
earnings per share 282.7 263.5 290.7 265.3
========== ========= ========== ========= |
