Corning Incorporated“s Chairman and Chief Executive Officer James R. Houghton told more than 500 shareholders at the company“s annual meeting on 28 April 2005 that the company has demonstrated a mul…
Corning Incorporated“s Chairman and Chief Executive Officer James R. Houghton told more than 500 shareholders at the company“s annual meeting on 28 April 2005 that the company has demonstrated a multi-year pattern of progress toward its financial goals resulting in a renewed sense of pride and confidence. Reflecting on the firm“s accomplishments since he returned as chairman and CEO in 2002, Houghton said, “Three years ago, I told you we would succeed and we did. We continued on our path, clearly defining our priorities, focusing intently on what we do best – applying generations of knowledge of materials and processes toward remarkable, life changing inventions. Three years later, our message is not about losses, but about profits. Three years later, we can talk not about cutbacks, but about real growth, growth the way we do it best, growth through innovation”. Houghton reminded shareholders that sales are up and debt is down. He said the balance sheet gets stronger with each passing quarter and that the company continues to innovate. “We“ve been able to make successes like these because we have focused relentlessly on a set of very basic priorities,” Houghton said. “One, to protect our financial health; two, to improve our profitability; three, to invest in our future; and four, to do all of these things while living our Values”. Houghton said the company has consistently reduced its debt and plans to further reduce it to below USD 2 billion by the end of 2005. He also told shareholders that Corning“s liquidity remains strong with USD 1.9 billion in cash and short-term investments at the end of 2004. “With all these encouraging factors in place, I am pleased to say that just yesterday two of the three rating agencies have upgraded our credit to BBB-, an investment-grade rating,” Houghton said. On profitability, Houghton noted that the company improved net profit before special charges by USD 500 million in each of the past two years and that it was well on its way to achieving profitability targets for 2005. “We just announced 1Q results that were significantly better than expected,” Houghton said. “And we are confident in our prospects and ability to succeed.” Houghton reminded shareholders that the company“s continues to invest 10% of revenues into research and development for near-term and long-term growth opportunities. He said Corning“s technology investments are helping to maintain and secure its leadership position for its growth businesses; liquid crystal display glass for notebook computers, flat-panel computer screens and LCD televisions; for the fiber to the premises market; and for diesel emissions control. Houghton also recognized Wendell P. Weeks, 45, who succeeded him on 28 April 2005 as chief executive officer. The company had announced the transition plan in January. Houghton told shareholders that Weeks, “has led some of our most significant product development and innovation initiatives over the years…and has the respect and full support of the board, the rest of the Management Committee, and our employees around the world.” Peter F. Volanakis, 49, succeeds Weeks as chief operating officer. In other business during the meeting, shareholders elected the following directors to three-year terms: John Seely Brown, 64, retired chief scientist for Xerox Corporation; Gordon Gund, 65, chairman and chief executive officer of Gund Investment Corporation; John M. Hennessy, 68, senior advisor to Credit Suisse First Boston; and H. Onno Ruding, 65, retired vice chairman of Citicorp and Citibank, N.A. Shareholders approved the 2005 Employee Equity Participation Program, which is effective for fiscal 2005 and expires on 1 May 2010. This program enables Corning to continue to make use of restricted stock and performance shares, thus providing flexibility in the designing of its performance based compensation programs. In addition, shareholders ratified the Corning Board audit committee“s appointment of PricewaterhouseCoopers LLP as independent auditors for 2005.