7 May 1998: Corning Incorporated reported that its 1998 first quarter net income from continuing operations, which now excludes the consumer housewares business, totaled US$ 62.1 million, compared wit…
7 May 1998: Corning Incorporated reported that its 1998 first quarter net income from continuing operations, which now excludes the consumer housewares business, totaled US$ 62.1 million, compared with 1997 net income from the same operations of US$ 85.4 million. Diluted earnings per share from continuing operations totaled US$ 0.27, versus 1997 first quarter diluted earnings per share of US$ 0.36. The decline in first quarter earnings per share is consistent with Corning“s expectations, as announced in January of this year. First quarter sales from continuing operations were US$ 794.8 million, compared to 1997 first quarter sales of US$ 817.1 million. “As we had anticipated, the decline in first quarter earnings was mostly due to the effects of Asia“s instability on several of our businesses. The impact was most pronounced on our international optical fibre sales, with lower volume and pricing compared with last year“s record first-quarter performance,” said Corning“s chairman and chief executive officer, Roger G. Ackerman. “Equity earnings were up substantially,” Ackerman added, “due primarily to strong performance and exchange gains at Samsung-Corning Company Ltd., a Korean manufacturer of glass panels and funnels for television and display monitors.” “We expect our trends to improve as the year progresses. But the extent and timing of our improvement clearly depends on stronger Asian economies, which we have not yet seen,” he said. On 1 April 1998, Corning completed the recapitalization and sale of a controlling interest in its consumer housewares business to an affiliate of Borden, Inc. Corning expects to record a gain from the sale in the second quarter. According to a company press release, the gain is likely to be offset by an early retirement programme, while the cash proceeds will be used to invest in growth businesses and reduce debt. “I am very pleased that we were recently able to complete the divestiture of our consumer housewares business to Borden,” Ackerman said. Corning recognized a loss from discontinued operations in the first quarter of 1998 totalling US$ 0.6 million, or US$ 0.01 per share, compared to income of US$ 6.6 million, or US$ 0.03 per share, for the first quarter of 1997. Including the loss from discontinued operations, Corning“s net income for the first quarter of 1998 was US$ 61.5 million, or US$ 0.26 per share, compared to net income of US$ 92.0 million, or US$ 0.39 per share for the first quarter of 1997.