Financial Performance
Fourth-Quarter 2022:
- Fourth-quarter GAAP sales were
$3.4 billion , and core sales were$3.6 billion . - Fourth-quarter GAAP EPS was
$(0.04) , and core EPS was$0.47 . The primary differences between GAAP and core EPS stemmed from restructuring charges taken in the fourth quarter and from non-cash, mark-to-market adjustments associated with the company’s currency-hedging contracts and Japanese-yen-denominated debt. - Free cash flow for the quarter was
$377 million .
Full-Year 2022:
- For the full year, GAAP sales were
$14.2 billion , up 1% year over year, and core sales were$14.8 billion , up 5%, versus a strong 2021.- Optical Communications’ annual sales surpassed
$5 billion , reaching an all-time high. - Display Technologies maintained stable pricing year over year despite a sharp drop in panel maker utilization in the second half.
- Specialty Materials and Environmental Technologies delivered consistent sales year over year, outperforming depressed end markets.
- Hemlock and Emerging Growth Businesses generated 34% year-over-year growth, driven primarily by solar sales, as well as strong year-over-year growth in Pharmaceutical Technologies and Automotive Glass Solutions.
- Optical Communications’ annual sales surpassed
- Full-year GAAP EPS was
$1.54 , and core EPS was$2.09 . The primary differences between GAAP and core EPS stemmed from restructuring charges. - Full-year free cash flow was
$1.24 billion .
First-Quarter 2023 Outlook:
- For the first quarter, management expects core sales in the range of
$3.2 billion to$3.4 billion and core EPS in the range of$0.35 to$0.42 . Management expects sales to decline more than seasonally due to pandemic-related disruptions inChina . Management took actions to increase price and improve productivity in the fourth quarter of 2022. The company expects the benefits of these actions to begin in the first quarter of 2023 and, as a result, profitability to improve despite an anticipated sequential sales decline.
Weeks continued, “We will continue to focus on operating each of our businesses well in 2023, including adapting to global and market dynamics, while simultaneously advancing long-term growth initiatives and capabilities that will drive our success as the global economy stabilizes. Even though the pandemic-related disruptions in
Schlesinger continued, “Looking ahead, we’re well positioned to capture growth as our end markets recover. For the first quarter, we anticipate core sales in the range of
Strategy in Action
2022 highlights include:
- Delivering innovations that offer unprecedented performance to meet the rigorous demands put on smartphone cover materials and allow people to do more right from their mobile devices by developing a new glass composition,
Corning ® Gorilla® Glass Victus® 2, that delivers improved drop performance on rough surfaces like concrete. Samsung Electronics Co., Ltd. will use the new composition as part of its next generation of Galaxy flagship smartphones. Additionally, Corning’s premium cover materials are also on the front and back of the Samsung Galaxy S22 devices, and Corning’s DX products are featured on all five rear cameras of the Samsung Galaxy S22 Ultra. - Enabling enhanced experiences for drivers and making vehicles greener by providing sustainable glass solutions for innovative curved interior displays.
Corning collaborated with LG Electronics, a global technology and vehicle component solutions innovator, to advance in-car connectivity, and with CarUX, a leading car display company owned by Innolux, to enable the future of automotive displays.Corning also continued expanding its gasoline particulate filter business into new markets asIndia advanced GPF implementation. - Helping build a more connected world.
Corning teamed up with Nokia andWesco to address operators’ labor and supply challenges with products that accelerate and simplify rural broadband deployment. To meet demand inEurope ,Corning opened a new optical fiber manufacturing plant inPoland . Additionally, the company was joined by AT&T CEOJohn Stankey andU.S. Secretary of CommerceGina Raimondo , whose leadership helped pass infrastructure legislation dedicated to connecting the unconnected, to announce a new optical cable manufacturing facility inArizona to meet committed customer demand and address industry growth. - Advancing the semiconductors that are fundamental to all of today’s technology by strengthening the United States’ leadership position in the growing industry. Sen.
Charles Schumer andNew York Gov.Kathy Hochul joinedCorning to announce a government-backed expansion of its Advanced Optics facility inFairport, New York , to bolster the supply chain. InMichigan , government funding is expected to allow the expansion of operations to meet the increasing global demand for hyperpure polysilicon in the semiconductor industry and address growing solar demand. - Developing sustainable practices across its industries.
Corning expanded its supply of critical materials to the solar industry, submitted carbon reduction goals to the Science Based Targets initiative, and extended its leadership in renewable energy use.Corning also pioneered chemical recycling methods with the potential to drastically reduce single-use plastic consumption and waste in the Life Sciences industry. - Driving life-changing discovery – from clean energy to space exploration. Corning’s advanced optics technologies played a vital role in the first successful fusion-ignition experiment in history. The company also applied its industry-leading solutions to enable the world’s deepest look into the universe by engineering and manufacturing key optical instruments for NASA’s James Webb Space Telescope.
- Building a more diverse, equitable, and inclusive work environment.
Corning became a VETS Indexes Recognized Employer in recognition of the company’s many employees who are veterans as well as its work to hire, retain, promote, and support veterans, and theNational Business Inclusion Consortium namedCorning among its Best-of-the-Best Corporations for Inclusion.
Fourth-Quarter and Full-Year 2022 Results and Comparisons
(In millions, except per-share amounts)
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | ||||||||||||||||
GAAP | $ | 3,406 | $ | 3,488 | (2%) | $ | 3,676 | (7%) | $ | 14,189 | $ | 14,082 | 1% | ||||||||||
GAAP Net (Loss) Income (1) | $ | (36) | $ | 208 | * | $ | 487 | * | $ | 1,316 | $ | 1,906 | (31%) | ||||||||||
GAAP Diluted EPS | $ | (0.04) | $ | 0.24 | * | $ | 0.56 | * | $ | 1.54 | $ | 1.28 | 20% | ||||||||||
Core Sales (2) | $ | 3,633 | $ | 3,666 | (1%) | $ | 3,714 | (2%) | $ | 14,805 | $ | 14,120 | 5% | ||||||||||
Core Net Income (2) | $ | 402 | $ | 438 | (8%) | $ | 465 | (14%) | $ | 1,794 | $ | 1,811 | (1%) | ||||||||||
Core EPS (2) | $ | 0.47 | $ | 0.51 | (8%) | $ | 0.54 | (13%) | $ | 2.09 | $ | 2.07 | 1% |
(1) Represents GAAP net (loss) income attributable to
(2) Core performance measures are non-GAAP financial measures. The reconciliation between GAAP and non-GAAP measures is provided in the tables following this news release, as well as on the company’s website.
* Not Meaningful
Fourth-Quarter and Full-Year 2022 Segment Results
The fourth-quarter and full-year 2022 results below are prepared on a basis consistent with Corning’s segment reporting as presented in the company’s consolidated financial statements.
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | |||||||||||||||||
$ | 1,195 | $ | 1,317 | (9%) | $ | 1,206 | (1%) | $ | 5,023 | $ | 4,349 | 15% | ||||||||||||
Net Income Before Tax | $ | 164 | $ | 233 | (30%) | $ | 198 | (17%) | $ | 841 | $ | 705 | 19% | |||||||||||
Net Income | $ | 130 | $ | 183 | (29%) | $ | 155 | (16%) | $ | 661 | $ | 553 | 20% |
In
Display Technologies
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | |||||||||||||||||
$ | 783 | $ | 686 | 14% | $ | 942 | (17%) | $ | 3,306 | $ | 3,700 | (11%) | ||||||||||||
Net Income Before Tax | $ | 217 | $ | 169 | 28% | $ | 317 | (32%) | $ | 972 | $ | 1,209 | (20%) | |||||||||||
Net Income | $ | 171 | $ | 134 | 28% | $ | 252 | (32%) | $ | 769 | $ | 960 | (20%) |
In Display Technologies, fourth-quarter sales were
Specialty Materials
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | |||||||||||||||||
$ | 505 | $ | 519 | (3%) | $ | 518 | (3%) | $ | 2,002 | $ | 2,008 | — | ||||||||||||
Net Income Before Tax | $ | 98 | $ | 122 | (20%) | $ | 117 | (16%) | $ | 430 | $ | 470 | (9%) | |||||||||||
Net Income | $ | 78 | $ | 96 | (19%) | $ | 92 | (15%) | $ | 340 | $ | 371 | (8%) |
In Specialty Materials, fourth-quarter sales were
Environmental Technologies
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | |||||||||||||||||
$ | 394 | $ | 425 | (7%) | $ | 353 | 12% | $ | 1,584 | $ | 1,586 | — | ||||||||||||
Net Income Before Tax | $ | 88 | $ | 110 | (20%) | $ | 69 | 28% | $ | 370 | $ | 341 | 9% | |||||||||||
Net Income | $ | 69 | $ | 87 | (21%) | $ | 54 | 28% | $ | 292 | $ | 269 | 9% |
In Environmental Technologies, fourth-quarter sales were
Life Sciences
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | |||||||||||||||||
$ | 294 | $ | 312 | (6%) | $ | 317 | (7%) | $ | 1,228 | $ | 1,234 | — | ||||||||||||
Net Income Before Tax | $ | 39 | $ | 54 | (28%) | $ | 61 | (36%) | $ | 193 | $ | 245 | (21%) | |||||||||||
Net Income | $ | 31 | $ | 43 | (28%) | $ | 49 | (37%) | $ | 153 | $ | 194 | (21%) |
In Life Sciences, fourth-quarter sales were
Hemlock and Emerging Growth Businesses
Q4 2022 | Q3 2022 | % change | Q4 2021 | % change | Full-year 2022 | Full-year 2021 | % change | |||||||||||||||||
$ | 462 | $ | 407 | 14% | $ | 378 | 22% | $ | 1,662 | $ | 1,243 | 34% | ||||||||||||
Net Income (Loss) Before Tax | $ | 9 | $ | 26 | (65%) | $ | (8) | * | $ | 63 | $ | (62) | * | |||||||||||
Net Income (Loss) | $ | 4 | $ | 18 | (78%) | $ | (7) | * | $ | 39 | $ | (51) | * |
* Not Meaningful
In Hemlock and Emerging Growth Businesses, fourth-quarter sales were
Upcoming Investor Events
On
Fourth-Quarter Conference Call Information
The company will host its fourth-quarter conference call on
Presentation of Information in this News Release
This news release includes non-GAAP financial measures. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP. Corning’s non-GAAP financial measures exclude the impact of items that are driven by general economic conditions and events that do not reflect the underlying fundamentals and trends in the company’s operations. The company believes presenting non-GAAP financial measures assists in analyzing financial performance without the impact of items that may obscure trends in the company’s underlying performance. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found on the company’s website by going to the Investor Relations page and clicking “Quarterly Results” under the “Financials and Filings” tab. These reconciliations also accompany this news release.
With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the
Caution Concerning Forward-Looking Statements
The statements contained in this release and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” and “target” and similar expressions are forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These estimates are subject to change and uncertainty which are, in many instances, beyond our control. There can be no assurance that future developments will be in accordance with management’s expectations. Actual results could differ materially from those expected by us, depending on the outcome of various factors. We do not undertake to update forward-looking statements.
Although the Company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business, and key performance indicators that impact the Company, actual results could differ materially. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the
For a complete listing of risks and other factors, please reference the risk factors and forward-looking statements described in our annual reports on Form 10-K and quarterly reports on Form 10-Q.
Web Disclosure
In accordance with guidance provided by the
About
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Attachments
- Corning Reports Fourth-Quarter and Full-Year 2022 Financial Results
- Q4 2022 Earnings Release Financials
- Q4 2022 Earnings Infographic
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