Corning Pro Forma Earnings Per Share Up 84% in Third Quarter
Source: Corning Inc.
Optical Fiber, Cable and Amplifiers lead the way
Corning, NY. Corning Incorporated (NYSE: GLW), a leading manufacturer of optical-networking technologies, reported today that its third-quarter pro forma earnings per share were $0.35, an increase of 84% compared with $0.19 per share in the third quarter of 1999.
Pro forma net income in the third quarter of 2000 totaled $317 million, more than double the $148 million in the third quarter of 1999. This performance was driven by strong demand for the company s high-data-rate optical fiber and cable, optical amplifiers, and LCD flat-panel display glass.
"As the quarter s performance clearly shows, we continue to benefit from delivering powerful optical technologies that provide the capacity to double Internet traffic every six months," said Roger G. Ackerman, Corning s chairman and chief executive officer. "We met exceptionally robust demand for our optical-networking technologies by sourcing products from our expanded network of five optical fiber plants and nine photonic technology plants on four continents."
Third-quarter sales were $1.9 billion, an increase of 54% over 1999 third-quarter sales of $1.25 billion. Excluding the impact of acquisitions, sales increased 37%. Sales in the optical fiber and cable business increased 67% versus the third quarter of last year, and 45% excluding the impact of acquisitions. Sales of photonic technologies grew 113%, led by demand for the company s optical amplifiers.
Equity earnings were up 63% 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.
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. Including these items, Corning s net income for the third quarter of 2000 totaled $254 million, or $0.28 per share. This compares with third-quarter 1999 net income of $142 million, or $0.18 per share.
Outlook
As announced on October 11, the company expects full-year pro forma earnings per share in the range of $1.15 to $1.17, an increase of approximately 70% versus last year s $0.67.
"Looking forward to 2001," Ackerman said, "we believe our key growth businesses will lead the way for strong revenue and earnings growth throughout 2001. Consistent with our long-term growth objectives, we expect earnings to grow next year at a rate of about 25%. As previously announced, the dilution from our pending acquisition of Pirelli s optical-components business will impact this growth rate by somewhat less than 5%, resulting in expected 2001 pro forma earnings per share in the range of $1.40 - $1.43."
The company will host a conference call at 8:30 a.m. EDT on Monday, . To access the call, dial 888-625-1617 or 415-228-4589 and use password: earnings. A replay of the call will begin approximately 30 minutes after the call is completed and will run through 5:00 p.m. EDT on Friday, October 27, 2000. To access the replay, dial 800-677-5886 or 402-998-1184; a password is not required. To listen to a live audio webcast of the call, go to http://www.corning.com/investor and follow the instructions. The webcast will be archived on the www.corning.com site for 30 days following the call.
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.
Contact: Corning Media Relations Daniel F. Collins Tel: 607/974-4197 collinsdf@corning.com or Investor Relations Katherine M. Dietz Tel: 607/974-8217 dietzkm@corning.com
Corning
Media Relations
Daniel F. Collins
Tel: 607/974-4197
collinsdf@corning.com
or
Investor Relations
Katherine M. Dietz
Tel: 607/974-8217
dietzkm@corning.com
E-mail: dietzkm@corning.com
Web site: http://www.corning.com