Corning reports first-quarter 2017 financial results

Corning continues to deliver value to shareholders.

Strong first-quarter results demonstrate the company’s continued positive momentum. Compared to the first quarter of 2016, GAAP EPS increased $0.43 to $0.07; core EPS rose 39% to $0.39; GAAP and core sales increased 16% and 14% to $2.38 billion and $2.49 billion, respectively.
Solid performance across all business segments was highlighted by sales growth in Optical Communications; continued rapid adoption of Corning® Gorilla® Glass 5; and continued glass price moderation in Display Technologies.
Further advancement on Strategy and Capital Allocation Framework initiatives: more than $6.5 billion returned to shareholders since Framework’s introduction in October 2015; technical and commercial progress demonstrated value of focused portfolio.
“We are very pleased with the excellent performance and growth across all of our businesses this quarter,” said Wendell P. Weeks, chairman, chief executive officer and president. “The strategic and financial benefits of Corning’s cohesive portfolio are becoming even more apparent. We are on track to deliver our 2017 objectives and overall Framework goals. Looking into the second quarter, we expect our momentum to be further demonstrated with year-over-year sales and EPS growth.”
Corning’s Strategy and Capital Allocation Framework continues to deliver long-term value to shareholders. Utilizing its financial strength, the company plans to deliver more than $12.5 billion to shareholders while investing $10 billion in growth opportunities and sustained leadership between 2016 and 2019. In the first quarter, Corning returned $552 million to shareholders through a combination of dividends and stock buybacks, and, since the Framework was announced, has returned more than $6.5 billion to shareholders. In addition, Corning’s focused portfolio is delivering excellent results.
“Corning’s leadership in a distinctive and cohesive set of capabilities increases our relevance in solving our customers’ toughest challenges,” Weeks added. “Verizon’s announcement last week is a great example. Verizon has committed to purchase at least $1.05 billion of optical fiber and associated solutions from Corning as they reinvent their network to support 5G and new services. Our Optical Communications market-access platform is central to realizing Verizon’s vision because of our ability to economically expand capacity and deliver innovative solutions.”
In Display Technologies, the company’s objective is to stabilize returns. First-quarter LCD glass price declines equaled the most moderate first-quarter declines in the past six years. Full-year 2017 LCD glass prices are expected to decline by about 10%, or possibly at a lower rate.
Other progress includes the continued rapid adoption of Gorilla® Glass 5, which supports the company’s goal of doubling sales in mobile consumer electronics. In the automotive market-access platform, Corning has won a majority of gas particulate filter (GPF) platforms. The company is also seeing progress toward commercialization of Gorilla Glass for Automotive, where interest in interiors is accelerating and progress toward additional wins for exteriors continues.