On 27 January, Corning Incorporated of the United States announced that net income from continuing operations for the fourth quarter ending 31 December 1996, totalled US$ 91.3 million, an increase of …
On 27 January, Corning Incorporated of the United States announced that net income from continuing operations for the fourth quarter ending 31 December 1996, totalled US$ 91.3 million, an increase of 28% compared with adjusted 1995 fourth quarter net income from continuing operations of US$ 71.5 million. Fourth quarter earnings per share from continuing operations totalled US$ 0.40, an increase of 29% compared with 1995. Adjustments to fourth quarter 1995 results relate to the change to Corning“s accounting calendar which became effective on 1 January 1996. For the full year 1996, Corning reported net income from continuing operations of US$ 342.9 million, or US$ 1.50 per share, compared with a net loss of US$ 71.5 million, or US$ 0.32 per share, in 1995. Excluding restructuring charges and the impact of fully reserving investment in Dow Corning Corporation in 1995, Corning“s 1996 net income and earnings per share from continuing operations increased 16% over 1995. Sales from Corning“s continuing operations for the fourth quarter of 1996 were US$ 990.1 million, an increase of 16% over adjusted 1995 levels. For 1996, sales from continuing operations were US$ 3.7 billion, an increase of 12% compared with 1995 sales of US$ 3.3 billion. Equity company results increased 80% in the fourth quarter compared with adjusted 1995 results and for the full year rose 28% due to positive results in the international optical fibre equity companies; EuroKera, a specialty glass equity venture with France“s Saint-Gobain; and Samsung-Corning Company Ltd. in South Korea. Corning“s chairman and CEO Roger G. Ackerman indicated that sales and earnings increases in the fourth quarter and full year were attributable to strong performance in most core businesses. “We“re especially pleased with the performance of the optical fibre and optical cable businesses, where demand is strong due to fibre hungry global markets, and with the emergence of opto-electronic components as a strong contributor”, he said. “We also enjoyed very strong performance in environmental products, both in terms of market penetration and manufacturing productivity,” continued Mr. Ackerman. “Growth at Corning Costar resumed nicely for products for pharmaceutical research and demand increased significantly for high-purity fused silica glass for semi-conductors. In addition, profitability improved substantially for consumer products and glass laboratory products due to ongoing cost reduction programmes.” “Results from our television products businesses, however, were below the previous year due to significant expansion related spending and a temporary softness in market demand; and Quanterra, our environmental services company, continues to struggle in a difficult industry.” “The year ahead will see a number of growth initiatives,” said Mr. Ackerman. “We are further expanding our reach in telecommunications beyond fibre and cable by developing new opportunities to be the supplier of choice for high-reliability passive optical components. Our liquid crystal display glass business, geared today for the lap-top computer market, is making breakthrough advances in manufacturing technology which resulted in improved results in the second half of 1996. We are also doubling our manufacturing capacity to supply high-purity fused silica glass, a key component for the next generation of semi-conductor equipment.” “We are focused on attractive international markets where we can apply our materials and process technology leadership to generate superior growth in our communications, environmental and advanced materials businesses. We continue to build on our leadership in glass, ceramics and photonics; we are extending our capabilities in polymers and surfaces; and, as always, in keeping with our history, we endeavour to create entirely new technologies,” concluded Mr. Ackerman.