Corning Innovation to Drive Future Growth


Several innovations from Corning Incorporated’s (NYSE: GLW – News) new business
portfolio have the opportunity for growth and could become significant
revenue generators for the company, Wendell
P. Weeks
, chairman, chief executive officer and president, will tell
investors today at the company’s annual
investor meeting
beginning at 9 a.m. in New York.

Weeks will open the meeting by acknowledging the challenges the company
is facing in 2012: lower LCD glass prices; higher corporate tax rates;
and declining equity earnings, which have combined to lower Corning’s
profitability. However, he will remind investors that “despite these
challenges, Corning plans to grow profits along our way to achieving our
goal of $10 billion in sales.” Last week, the company announced record
2011 sales of $7.9 billion.

Vision of the future

Weeks will recall for investors that a year ago the company shared a
vision of the future through a video, “A
Day Made of Glass
.” The video portrayed “a mobile world, a visual
world, a world of intuitive interfaces, a world requiring massive
bandwidth, and a world of life-enhancing technologies,” Weeks will say.
“We are excited about this world, because it’s a world that depends on
highly engineered specialty glass and fiber optic technology.”

Weeks also will unveil Corning’s newest video, “A Day Made of Glass 2,”
which demonstrates even more ways that Corning’s specialty glass is
helping enable a world of communication and connection. Both videos will
be available for viewing at
later today.

Innovative opportunities

To illustrate how Corning’s latest innovations are helping to bring this
vision of the future to life, Weeks will demonstrate Corning®
Gorilla® Glass 2 in a live product-durability test, noting
that the company has further improved the product attributes by reducing
the glass thickness by 20% while maintaining its industry-leading damage

Additionally, Weeks will discuss several ways the company is providing
glass innovations to enable high-performance displays. He will
demonstrate Corning’s
Lotus™ Glass
and show work that the company is doing on ultra-slim
flexible glass
. Corning’s patented fusion glass manufacturing
process should allow the company to produce slim, flexible glass that is
five times thinner than standard display glass. It also has the
potential to revolutionize the way displays are manufactured by allowing
device makers to move from batch manufacturing to a continuous
roll-to-roll process.

“Ultra-slim glass creates the opportunity to manufacture devices using
the same techniques as plastic films, while providing all the advantages
of glass in terms of transparency, encapsulation, and high-temperature
tolerance,” Weeks will explain. “This unlocks the opportunity for some
very exciting displays.”

Weeks also will tell investors that Corning continues to innovate its
optical fiber and connectivity solutions to meet the ever-increasing
bandwidth demand driven by consumer electronics applications. “Our new
mobile access wireless solutions are assuring five-bar coverage, an
ability to flex capacity allocation, and reduced installation time and
cost.” At the same time, Corning continues improving optical
connectivity with faster, lighter, smaller, and lower-energy-consumption
device-to-device connectivity solutions for the home.

Finally, he plans to highlight an innovation that combines Corning’s
expertise in biochemistry, specialty glass, and surface technology.
“Corning is developing a glass that kills drug-resistant bacteria and
viruses,” Weeks will explain. “The product is in the early stages, but
it’s something we’re very excited about. This is an area that has a very
real chance of becoming one of our exciting new growth opportunities.”

Path to $10 billion in sales

B. Flaws
, vice chairman and chief financial officer, will say, “As a
company, we are approaching a lower level of profitability driven by LCD
glass price declines. We expect these to moderate as glass capacity and
demand come into balance. Our plan is to march up from this level with
increased sales and profits, reaching $10 billion in sales in 2014.”

He plans to point out that while Corning LCD glass sales are likely to
be flat through 2014, the business will remain highly profitable and
continue to generate large amounts of cash. “We are confident we can
maintain a healthy gross margin in the display business with a robust
cost-reduction program, including bringing price declines in line with
manufacturing costs and reduced capital expenses. Future glass-volume
growth will come from an accelerated display-replacement cycle and
advanced glass technologies, bringing thinner displays to the market,”
he will remark.

“We now expect the Telecommunications,
, Environmental
, and Life
business segments to be the primary drivers of increased
sales and profits going forward,” Flaws will add. Advances in the areas
of fiber-to-the-home installations, enterprise network (data centers)
solutions, optical fiber sales, and wireless applications, all are
expected to contribute to Corning’s Telecommunications segment growth,
which could see sales approaching $3 billion in a few years.

Corning’s Gorilla Glass sales, contained in the Specialty Materials
segment, are expected to grow “materially” through 2014, led primarily
by consumer electronic devices and potentially from industries outside
this market, such as automotive, appliance, and architectural
applications. Life Sciences sales are forecasted to nearly double to $1
billion as part of the company’s growth plan. And tighter global
environmental emissions regulations will help drive Corning’s
Environmental Technologies segment to $1.4 billion in sales by 2014. New
businesses could contribute an additional $400 million to Corning’s path
to $10 billion.

“We are addressing a number of challenges as we work to achieve these
goals,” Flaws will point out. “But we have a solid balance sheet. We are
committed to managing costs and to investing in future technologies that
should lead to new market opportunities.”

“As the past has taught us, our path to achieve these goals is unlikely
to be smooth. But by remaining nimble and focused, we believe we can
achieve our $10 billion sales goal by 2014,” Flaws will tell investors.

Conference Broadcast Information

Corning’s annual investor meeting will be held on Friday, Feb. 3 at
Cipriani, located at 110 E. 42nd Street, New York. Corning’s products
and technologies will be on display from 8 until 9 a.m. and from 11 a.m.
until 12 p.m. Corning will make the presentation at its annual investor
conference available to the public through a video
and audio webcast
and telephone access. The broadcast will begin at
9 a.m. EST. The dial-in number is (800) 230-1093 (U.S.) or (612)
332-0634 (international). The password is 2012 IR Meeting. The leader is
Ken Sofio. A replay of the call will be available at 1 p.m. EST and will
run through midnight EST on Friday, Feb. 17, 2012. To access the replay,
dial (800) 475-6701 (U.S.) or (320) 365-3844 (international). The access
code is 234927. The audio webcast will be archived for one year
following the call.

Presentation of Information in this News Release

Non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP. Corning’s non-GAAP net income and EPS measures
exclude restructuring, impairment and other charges and adjustments to
prior estimates for such charges. Additionally, the company’s non-GAAP
measures exclude adjustments to asbestos settlement reserves, gains and
losses arising from debt retirements, charges or credits arising from
adjustments to the valuation allowance against deferred tax assets,
equity method charges resulting from impairments of equity method
investments or restructuring, impairment or other charges taken by
equity method companies and gains from discontinued operations. The
company believes presenting non-GAAP net income and EPS measures is
helpful to analyze financial performance without the impact of unusual
items that may obscure trends in the company’s underlying performance.
Reconciliation of these non-GAAP measures can be found on the company’s
Web site by going to
and clicking Financial Reports on the left. Reconciliation also
accompanies this news release.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements” (within the
meaning of the Private Securities Litigation Reform Act of 1995), which
are based on current expectations and assumptions about Corning’s
financial results and business operations, that involve substantial
risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties include: the effect of global
political, economic and business conditions; conditions in the financial
and credit markets; currency fluctuations; tax rates; product demand and
industry capacity; competition; reliance on a concentrated customer
base; manufacturing efficiencies; cost reductions; availability of
critical components and materials; new product commercialization;
pricing fluctuations and changes in the mix of sales between premium and
non-premium products; new plant start-up or restructuring costs;
possible disruption in commercial activities due to terrorist activity,
armed conflict, political or financial instability, natural disasters,
adverse weather conditions, or major health concerns; adequacy of
insurance; equity company activities; acquisition and divestiture
activities; the level of excess or obsolete inventory; the rate of
technology change; the ability to enforce patents; product and
components performance issues; retention of key personnel; stock price
fluctuations; and adverse litigation or regulatory developments. These
and other risk factors are detailed in Corning’s filings with the
Securities and Exchange Commission. Forward-looking statements speak
only as of the day that they are made, and Corning undertakes no
obligation to update them in light of new information or future events.

About Corning Incorporated

Corning Incorporated (
is the world leader in specialty glass and ceramics. Drawing on more
than 160 years of materials science and process engineering knowledge,
Corning creates and makes keystone components that enable
high-technology systems for consumer electronics, mobile emissions
control, telecommunications and life sciences. Our products include
glass substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware equipment for telecommunications
networks; optical biosensors for drug discovery; and other advanced
optics and specialty glass solutions for a number of industries
including semiconductor, aerospace, defense, astronomy, and metrology.

Follow CorningRSS
 | Facebook | Twitter | YouTube

Leave a Reply

Your email address will not be published. Required fields are marked *