Corning`s First Quarter Performance Exceeds Expectations as Pro Forma Earnings Per Sh - 500 Beiträge pro Seite

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Corning`s First Quarter Performance Exceeds Expectations as Pro Forma Earnings Per Share Increased 26%
Company reduces 2001 guidance and announces additional workforce reductions
CORNING, N.Y.--(BUSINESS WIRE)--April 26, 2001--Corning Incorporated (NYSE:GLW - news), a worldwide leader in optical communications technologies, today reported first quarter pro forma earnings per share of $0.29, up 26% from $0.23 per share a year ago. Corning exceeded by $0.01 per share the current consensus of analysts` earnings estimates, as compiled by Thomson Financial/First Call. Pro forma net income for the first quarter of 2001 totaled $277 million, an increase of 47%, as compared with $188 million in 2000. Additionally, Corning said that it is revising its 2001 pro forma earnings guidance from $1.20 to $1.30 per share, to $0.90 to $1.00 per share. The company also said that it would have eliminated approximately 4,300 permanent and temporary positions, including those announced today, by the end of this month.

John W. Loose, Corning`s president and chief executive officer, said, ``Early in the first quarter we warned of a significant softening in the telecommunications market. We immediately put into place an aggressive action plan to control costs, reduce overhead and reallocate portions of our fiber volume into international markets that we had been previously unable to serve. These actions clearly paid off and our strong first quarter results are evidence.

``The capital spending outlook for network carriers continues to soften and is now impacting all of our telecommunications businesses more significantly, including optical fiber. Due to this extended market weakness, we are lowering our full year pro forma earnings guidance. We are also accelerating our efforts to reduce spending and trimming our workforce to address this downturn.``

First quarter review

First quarter sales were $1.9 billion, an increase of 42%, as compared with 2000 first quarter sales of $1.35 billion. Excluding the impact of acquisitions, sales increased 26%. Optical fiber volume grew by 25% versus the first quarter of last year driven by strong demand for Corning`s premium products, LEAF®, the company`s high-data-rate optical fiber, and MetroCor(TM), Corning`s fiber solution for the metropolitan marketplace. International premium fiber volume doubled versus last year. Photonic Technologies first quarter sales increased 28% over last year, however sales were 32% lower than the fourth quarter of 2000 due to softness in the optical amplifier business. Sales volume of flat-panel display glass grew at a rate of 20% as the industry adjusted inventory levels, however revenues in the quarter were flat with the prior year due to the translation impact of the weak yen.

Corning`s net income for the first quarter of 2001 totaled $132 million, or $0.14 per share. This compares with first quarter 2000 net income of $77 million, or $0.09 per share.

Corning reviews 2001 outlook

Corning`s revised 2001 pro forma earnings guidance of $0.90 to $1.00 per share compares to 2000 pro forma earnings of $1.23 per share. The company also revised its overall 2001 sales outlook down to $7.8 billion to $8.0 billion.

Commenting on the company`s outlook for 2001, Loose said, ``Capital availability constraints in the market are negatively impacting carriers` ability to build and upgrade networks, contributing to recent significant reductions in high-data-rate fiber demand from our top customers.``

The company now expects its 2001 fiber volume to grow at a rate of 15% to 20% and that premium fiber products, as a percentage of total fiber volume will approximate 25%. Loose said, ``We continue to emphasize expansion of our fiber and cable businesses into international markets. We have been particularly successful in China in the first quarter. Additionally, we are seeing strengthening single-mode fiber demand.``

Loose added, ``We now expect this year`s photonic technologies business sales to be approximately flat with last year`s levels. This is primarily a result of significantly lower sales of optical amplifiers due to the industry slow down and reduction of inventories. However, our other photonic product lines continue to grow as we take market share and add new customers.``

Corning said that the impact of the economic downturn is expected to be much less severe in its advanced materials and information display segments than in its telecommunications segment. It expects volume growth in its flat-panel display business to be approximately 40% for the year, but the impact of the weak yen on translated sales will hold sales increases to about 20%. The company said it is already seeing signs of recovery in Korean and Taiwanese markets.

Corning now expects second quarter sales to be about $1.8 billion to $1.9 billion. Second quarter pro forma earnings per share are expected to be in the range of $0.18 to $0.21, compared to last year`s second quarter earnings of $0.31. Photonic technologies sales are anticipated to be the same as the first quarter, while fiber volume is expected to be flat year over year due to recent order cancellations by several major U.S. customers of high-data-rate fiber.

Company Initiatives

``In response to this softer outlook we have instituted a 20% capital spending reduction, we are moving aggressively to lower inventory levels for the remainder of the year, and we are reducing our workforce,`` Loose said.

The company announced today that it is reducing an additional 1,000 positions in its Photonic Technologies business. The majority of these reductions are occurring at the Erwin and Rochester, N.Y., Bedford, Mass., and Scranton, Pa. facilities. This brings total reductions in Photonic Technologies to about 2,500 for the year. When combined with other layoffs, primarily in its hardware and equipment and controls and connectors businesses, the company`s total workforce reduction to date is about 4,300. Corning said it might take a restructuring charge in the second quarter as a result of these April 2001 and potential future workforce reductions.

``We will continue to take actions in response to market slowdowns, including the possibility of further company-wide workforce reductions. I remain confident that Corning is well positioned to ride out this economic downturn and to capitalize on the projected long-term growth of the telecommunications market,`` Loose said. ``Our fundamental business strategy of investing in high-growth optical communications, advanced materials and information display businesses is sound. At our core, we are a technology company and we remain committed to our optical layer strategy and the development of new technologies. We continue to be profitable and our balance sheet remains strong.``

Conference Call Information

The company will host a conference call at 8:30 a.m. EST on Friday, April 27, 2001. To access the call, dial 1-888-398-1687 (Domestic) or 1-712-257-0401 (International). The passcode is EARNINGS. A replay of the call will begin at approximately 10:30 a.m. and will run through 5:00 p.m. EST on Friday, May 11, 2001. To access the replay, dial 1-800-468-0312 or 1-402-220-2266; a password is not required. To listen to a live audio webcast of the call, go to http://www.corning.com/investor_relations/ and follow the instructions.

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 2000 were $7.1 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.

Pro Forma Statement

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.

-0-


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
(Unaudited, in millions, except per share amounts)

For the three months ended
March 31,
---------------------------
2001 2000
---- ----
Net sales $ 1,921 $ 1,351
Cost of sales 1,112 788
--------- ---------

Gross margin 809 563

Operating Expenses
Selling, general and
administrative expenses 261 200
Research, development and
engineering expenses 162 110
--------- ---------

Operating income 386 253

Interest income 24 16
Interest expense (34) (24)
Other income (expense), net (9) (13)
--------- ---------

Income before taxes 367 232
Taxes on income 119 75
--------- ---------

Income before minority
interest and equity earnings 248 157
Minority interest in earnings
of subsidiaries (5) (3)
Equity in earnings of
associated companies 34 34
--------- ---------

Pro Forma Net Income $ 277 $ 188
========= =========

Pro Forma Basic Earnings
Per Share $ 0.30 $ 0.23
========= =========
Pro Forma Diluted Earnings
Per Share $ 0.29 $ 0.23
========= =========
Dividends Declared $ 0.06 $ 0.06
========= =========

Shares used in computing
pro forma per share amounts:
Pro forma basic earnings
per share 923 811
========= =========
Pro forma diluted earnings
per share 943 840
========= =========


The above pro forma amounts for the quarter ended March 31, 2001
have been adjusted to eliminate $156 million ($145 million after tax)
of amortization of purchased intangibles and goodwill.
The above pro forma amounts for the quarter ended March 31, 2000
have been adjusted to eliminate $13 million ($10 million after tax) of
amortization of purchased intangibles and goodwill, $42 million ($26
million after tax) of in-process research and development charges, $47
million ($43 million after tax) of transaction costs from the Oak
acquisition, $36 million after tax for the impairment of the entire
equity investment in Pittsburgh Corning Corporation, and $7 million
($4 million after tax) for a nonoperating gain related to the sale of
Quanterra Incorporated.

- Pro Forma -

Corning Incorporated and Subsidiary Companies
Condensed Consolidated Statements of Income
(Unaudited, in millions, except per share amounts)

For the three months ended
March 31,
--------------------------
2001 2000
---- ----

Net sales $ 1,921 $ 1,351
Cost of sales 1,112 788
-------- --------

Gross margin 809 563

Operating Expenses
Selling, general and
administrative expenses 261 200
Research, development and
engineering expenses 162 110
Amortization of purchased
intangibles, including goodwill 156 13
Acquisition-related charges 89
-------- --------

Operating income 230 151

Interest income 24 16
Interest expense (34) (24)
Other income (expense), net (9) (13)
Nonoperating gains 7
-------- --------

Income before taxes 211 137
Taxes on income 108 55
-------- --------

Income before minority interest
and equity earnings 103 82
Minority interest in earnings
of subsidiaries (5) (3)
Equity in earnings of
associated companies 34 34
Impairment of equity investment (36)
--------- ---------

Net Income $ 132 $ 77
========= =========

Basic Earnings Per Share $ 0.14 $ 0.09
========= =========
Diluted Earnings Per Share $ 0.14 $ 0.09
========= =========
Dividends Declared $ 0.06 $ 0.06
========= =========

Shares used in computing per
share amounts:
Basic earnings per share 923 811
========= ==========
Diluted earnings per share 937 832
========= ==========

The accompanying notes are an integral part of these statements.

Corning Incorporated and Subsidiary Companies
Condensed Consolidated Balance Sheets
(Unaudited, in millions)

March 31, December 31,
2001 2000
--------- ------------
Assets

Current Assets
Cash and short-term investments $ 1,149 $ 1,794
Accounts receivable, net 1,351 1,489
Inventories 1,215 1,040
Deferred taxes on income and
other current assets 359 311
-------- --------
Total current assets 4,074 4,634

Investments 606 635

Plant and equipment, net 4,939 4,679

Goodwill and other intangible
assets, net 7,286 7,340

Other assets 268 238
-------- --------

Total Assets $ 17,173 $ 17,526
======== ========

Liabilities and Shareholders` Equity

Current Liabilities
Loans payable $ 197 $ 128
Accounts payable 614 855
Other accrued liabilities 827 966
-------- --------
Total current liabilities 1,638 1,949

Long-term debt 3,838 3,966
Other liabilities 798 830
Minority interest in subsidiary
companies 140 139
Mandatorily redeemable convertible
preferred stock 8 9
Common shareholders` equity 10,751 10,633
-------- --------

Total Liabilities and
Shareholders` Equity $ 17,173 $ 17,526
======== ========

The accompanying notes are an integral part of these statements.

Corning Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 1, 2001


(1) Information by Operating Segment

Information about the performance of Corning`s three operating
segments for the first quarter of 2001 and 2000 are presented
below. These amounts exclude revenues, expenses and equity
earnings not specifically identifiable to segments. Segment
net income excludes amortization of purchased intangibles and
goodwill, purchased in-process research and development costs,
one-time acquisition costs and other nonrecurring items. This
measure is not in accordance with generally accepted
accounting principles (GAAP) and may not be consistent with
measures used by other companies.

Corning prepared the financial results for its three operating
segments on a basis that is consistent with the manner in which
Corning management internally disaggregates financial information
to assist in making internal operating decisions. Corning has
allocated some common expenses among segments differently than it
would for stand alone financial information prepared in accordance
with GAAP. Corning has realigned one product line from the
Advanced Materials segment into the Telecommunications segment.
Segment results for 2000 have been restated to conform to the
current presentation.

Three months ended
March 31,
------------------
2001 2000
---- ----
Telecommunications
Net sales $ 1,433 $ 905
Research, development and engineering
expenses $ 124 $ 78
Interest expense $ 25 $ 15
Segment earnings before minority interest
and equity earnings $ 186 $ 112
Minority interest in losses of
subsidiaries 3
Equity in earnings of associated
companies 3
--------- --------
Segment net income $ 189 $ 115
========= ========

Advanced Materials
Net sales $ 282 $ 252
Research, development and engineering
expenses $ 28 $ 26
Interest expense $ 5 $ 6
Segment earnings before minority interest
and equity earnings $ 26 $ 17
Minority interest in earnings
of subsidiaries
Equity in earnings of associated
companies 6 6
--------- --------
Segment net income $ 32 $ 23
========= ========

Information Display
Net sales $ 201 $ 188
Research, development and engineering
expenses $ 10 $ 6
Interest expense $ 4 $ 3
Segment earnings before minority interest
and equity earnings $ 21 $ 20
Minority interest in earnings
of subsidiaries (5) (6)
Equity in earnings of associated
companies 25 27
--------- --------
Segment net income $ 41 $ 41
========= ========

Total segments
Net sales $ 1,916 $ 1,345
Research, development and engineering
expenses $ 162 $ 110
Interest expense $ 34 $ 24
Segment earnings before minority interest
and equity earnings $ 233 $ 149
Minority interest in earnings
of subsidiaries (5) (3)
Equity in earnings of associated
companies 34 33
--------- --------
Segment net income $ 262 $ 179
========= ========


A reconciliation of the totals reported for the operating segments
to the applicable line items in the consolidated financial statements
is as follows:

Three months ended
March 31,
------------------
2001 2000
---- ----
Net sales
Total segment net sales $ 1,916 $ 1,345
Non-segment net sales (a) 5 6
-------- --------
Total net sales $ 1,921 $ 1,351
======== ========

Net income
Total segment income (b) $ 262 $ 179
Unallocated items:
Non-segment loss and other (a) (1) (2)
Nonoperating gain 7
Amortization of purchased
intangibles and goodwill (c) (156) (13)
Acquisition-related charges (89)
Interest income (d) 24 15
Income tax (e) 3 15
Equity in earnings of associated
companies (a) 1
Impairment of equity investment (36)
-------- --------

Net income $ 132 $ 77
======== ========

(a) Includes amounts derived from corporate investments.
(b) Includes royalty, interest and dividend income.
(c) Amortization of purchased intangibles and goodwill relates
primarily to the Telecommunications segment.
(d) Corporate interest income is not allocated to reportable segments.
(e) Includes tax associated with unallocated items.


(2) Recent Acquisitions

On March 19, 2001, Corning completed the acquisition of Tropel
Corporation, a manufacturer of precision optics and metrology
instruments for the semiconductor and other industries, for
approximately $66 million in cash and 1.95 million shares of
Corning common stock. Based upon the average closing price of
Corning common stock for a range of days surrounding the
announcement and adjusted for a discount commensurate with
restrictions on the shares issued, the recorded purchase price
approximated $160 million. The excess of the purchase price over
the estimated fair value of tangible assets acquired was allocated
primarily to goodwill. Goodwill of approximately $155 million is
being amortized on a straight-line basis over 15 years.

(3) Depreciation and Amortization

Depreciation and amortization charged to operations for the first
quarters of 2001 and 2000 totaled $312 million and $126 million,
respectively.

(4) Taxes on Income

Corning`s effective income tax rate for the first quarter ending
March 31, 2001 was 51.1%, an increase over the 2000 rate of 40.1%.
The increase was primarily due to the large amounts of non-tax
deductible purchased intangibles and goodwill. Excluding the
impact of the amortization of purchased intangibles and goodwill,
purchased in-process research and development costs, one-time
acquisition costs and other nonrecurring items, the effective
income tax rate was approximately 32.5% for the quarters ended
March 31, 2001 and 2000.

[Playlife]

Beim jetzigen Kurs und einem für 2001 geplanten Gewinn von 0,90 USD hätte Corning ein KGV von etwa 20-25... durchaus annehmbar, wie ich finde...

[nasenfliege]

26.04. 22:47
Corning mit Zahlen und Gewinnwarnung
--------------------------------------------------------------------------------
(©BörseGo - http://www.boerse-go.de)

Obwohl der Glasfaserspezialist Corning mit seinen Zahlen für das erste Quartal die Erwartungen des Marktes schlagen konnte, kündigte man radikale Kosteneinsparungen an und schob eine Gewinnwarnung für das Gesamtjahr nach.

Das Unternehmen meldete am Donnerstag nach Börsenschluß einen Gewinn von 277 Mio $ oder 29 Cents/Aktie, was über den 188 Mio $ des Vorjahres liegt und auch über den 28 Cents/Aktie, die Analysten erwartet hatten.

Der Umsatz stieg gleichzeitig von 1,35 Milliarden auf 1,9 Milliarden $ an.

Im Anschluß schockte man die Aktionäre allerdings mit der Meldung, daß neben beschlossenen 4300 Stellenstreichungen auch ein deutlich niedriger Gesamtjahresgewinn erwartet werde.
Anstelle der zuvor geplanten 1,2$ bis 1,3$/Aktie rechne man nur noch mit einem Gewinn von 0,9-1$/Aktie, erklärte der CEO von Corning, John Loose.
Als Grund wurden das weiter nachlassenden Ausgaben der Kunden, insbesondere Telekomunternehmen angeführt