2013-02-08 14:05:14 -
Corning(®) Gorilla(®) Glass could double in sales
Telecommunications poised for significant growth
CORNING, N.Y., February 8, 2013 - Extending Corning Incorporated's (NYSE: GLW)
current and emerging innovations into new markets is key to capturing
significant new growth opportunities, Wendell P. Weeks, chairman, chief
executive officer and president, will tell attendees at Corning's annual
investor meeting today in New York.
In opening the meeting, Weeks will remind investors that Corning's strategy
calls for growth primarily through global innovation across a balanced product
portfolio. He will point out that the company offers both strength and stability
to investors. "We're financially sound. We are the market and technology leader
in the industries we serve, as well as the lowest-cost
producer for most of our
products. Our businesses are all tied to significant trends, and our business
diversity helps reduce our volatility during market and economic upsets.
"We offer strong cash flow, a reliable dividend, and the earnings power to
invest in growth. And, we have the opportunity for exceptional growth outside of
our existing businesses," Weeks will say.
Innovations with Breakout Potential
Corning continues to focus on breakthrough innovations while also leveraging
existing capabilities and assets to enter new markets and generate quick
returns. "Let me illustrate," Weeks will offer. "When we launched Gorilla
in 2007, we basically created the market for tough, durable cover glass. Today,
Gorilla Glass is featured on 1 billion devices worldwide. It is Corning's
second-most-profitable business and the fastest-growing product in Corning's
He will point out that "Our Gorilla Glass business has the potential to more
than double in sales over the next several years," with three major trends
driving this opportunity: smartphone volume growth expected to double and tablet
computers to triple by 2016; large screen sizes for electronic devices using
more cover glass; and touch technology moving to notebook computers, creating an
entirely new opportunity.
Additionally, he will explain to investors that Corning plans to bring forward
new glass innovations for the consumer electronics market, including optimized
touch and Radio Frequency (RF) capabilities; aesthetically pleasing shaped
devices; and anti-reflectivity and antimicrobial properties. "We plan to have
commercial launches for our shaped, anti-reflective, and antimicrobial Gorilla
Glass solutions this year," he will reveal.
Future of Display Technologies
"We are rapidly trending toward an 'always on' world, a world in which we can
access information and communicate whether we're in our homes, in transit, or at
our desks," James P. Clappin, president of Corning Glass Technologies, will tell
meeting attendees. Clappin will explain that television trends, including larger
screen sizes and faster replacement cycles, coupled with dynamic growth in high-
performance tablets and smartphones "will continue to drive growth in the LCD
glass market going forward."
"Corning's advanced glass solutions support the intuitive, touch-enabled
interfaces, as well as the high-resolution, and ultra-thin form factor
requirements of this next wave of innovations in display," he will say.
He also will note, "Many technological advancements first emerge in smaller
applications like smartphones or tablets, and Corning's other advanced glasses
are poised to address key display industry trends in these markets." Corning(®)
Lotus(TM) Glass is designed to offer superior performance for higher-resolution
LCDs as well as OLEDs. Clappin will emphasize that the company remains
optimistic about the OLED market, noting "all manufacturers making or developing
OLED devices are relying on designs with two pieces of glass." In addition,
Clappin will remind investors that Corning's newest advanced glass solution, the
ultra-slim, flexible Corning(®) Willow(TM) Glass, "could be the key that unlocks
a host of next-generation displays."
Corning(®) Gorilla(®) Glass Applications
"Our outlook for Gorilla Glass is very positive," Clappin will say. "We have
already surpassed $1 billion in annual sales last year, and now the new
functionality of Gorilla Glass 3, in combination with significant consumer
electronics growth trends, could enable the business to double in size over the
next several years."
The near future in consumer electronics, Clappin will explain, should bring
increased penetration of the smartphone as the handheld device of choice; a 30%
increase in screen size; a doubling of the popularity of tablet devices over the
next four years; and touch applications emerging on notebook computers.
Corning also sees growth possibilities for Gorilla Glass beyond the consumer
electronic space. Clappin will tell investors, "The same qualities that make
Corning Gorilla Glass so popular in the display category also afford us new
opportunities in adjacent markets: transportation, interior architecture,
appliances, and large-format displays."
Citing potential 2013 double-digit growth in Corning's Telecommunications
Business Group, Clark S. Kinlin, executive vice president, will explain that the
increasingly always-on world "is straining communication networks and providing
tremendous opportunities for Corning."
Rapidly expanding data storage requirements, ubiquitous access to that data, and
quadrupling bandwidth demand all push the limits of existing networks, requiring
major investments in optical infrastructure to meet consumer expectations.
Kinlin will explain that Corning is able to bring together its market leadership
in optical fiber, cable, connectors, hardware and actives to develop high-value
optical solutions that expand bandwidth capacity and reduce costs for customers.
Looking across his major business areas, Kinlin will explain that the global
optical fiber market is expected to exceed 250 million fiber kilometers in
2013. The bulk of this growth is expected to come from developing markets. In
positioning the company to address one of the key emerging markets, Corning
opened a new fiber manufacturing facility in India last year.
Providing a full suite of solutions across a wide range of application spaces,
Corning continues to expand its Pretium EDGE(TM) solution for data centers;
provides cost-effective pre-connected solutions for major fiber-to-the-home
deployments around the globe; extends its distributed antenna systems for mobile
access at large public-venue environments; and now offers Optical(TM) Cables by
Corning, which enable consumers to have lightning-fast data transfer speeds over
distances that greatly exceed the length limits of copper-based cables.
The advancement of regulations aimed at improved air quality around the world
can help grow Corning's Environmental Technologies profitability by more than
10% over the next several years, Mark A. Beck, executive vice president for
Corning's Environmental Technologies and Life Sciences Business Group, will tell
investors. He will explain that new "clean air" initiatives in China and India,
along with tightening regulations in Europe and the U.S., should contribute to
the anticipated growth in both light-duty substrates and heavy-duty products.
Looking forward, Beck will point out that Corning is sampling new technologies
to address: automotive emissions standards for improved fuel efficiency engines;
expanded regulations impacting marine and locomotive regulations; and
applications to help reduce greenhouse gas emissions.
Corning's Life Sciences business is approaching $1 billion in annual sales,
driven in large part by its recent acquisitions which have strengthened its
global product and customer base. "We now have a broad portfolio of products
that positions us well for the next wave in healthcare. Central to this is a
trend toward biological therapies, which take a patient's unique environmental,
behavioral, and medical needs into account. As a pioneer in cell culture
research, we are well-positioned to address the emerging bioprocessing market,"
Beck will say.
Path to a more Balanced Company
James B. Flaws, vice chairman and chief financial officer, will reiterate the
confidence Corning's management has in its expectations for continued sales and
earnings growth for the company. The three trends of seamless, real-time
information delivery, cleaner air, and advances in medical technology "are
driving our growth now and will continue to do so over the next several years."
He will point out that a large portion of this growth should come from emerging
markets such as China, India, and Brazil.
He will also note the important role that Dow Corning Corporation (an equity
company) plays in Corning's future. "Dow Corning is an important contributor to
our long-term growth, stability, and balance. Dow Corning remains the world
leader in silicon and polysilicon production, as they focus on high-value, high-
growth opportunities and make significant advances in expanding their geographic
reach." He will also acknowledge that Dow Corning's Hemlock Semiconductor Group,
will negatively impact Corning's equity earnings in the near future, as it
addresses the tumultuous market conditions in the global solar industry.
Flaws will review other important factors driving the company's financial
performance: foreign exchange rates could continue to impact Corning's results;
the company's solid plan to manage its positive cash flow through debt repayment
and reinvestment in the company's future through capital spending of $1.3
billion in 2013; and the potential for additional returns to shareholders in the
form of increased dividends or another share repurchase plan in the future.
Conference Broadcast Information
Corning's annual investor meeting will be held on Friday, Feb. 8 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. EST.
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 877-430-4662 (U.S.) or
224-357-2218 (International). The call title is Corning Incorporated 2013
Investor Meeting. A replay of the call will be available at 1 p.m. EST and will
run through 5 p.m. EST on Tuesday, Feb. 12, 2013. To access the replay, dial
855-859-2056 U.S. or 404-537-3406 International. The confirmation code is
75706989. The 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
www.corning.com/investor_relations 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 (www.corning.com) 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.
Media Relations Contact:
Daniel F. Collins
Investor Relations Contact:
Ann H.S. Nicholson
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Source: Corning Incorporated via Thomson Reuters ONE