Weeks continued, “We are entering 2024 operationally strong, and we have an opportunity to increase our sales by more than
Financial Review
Fourth-Quarter 2023:
- GAAP sales were
$3.0 billion , down 6% sequentially. Core sales were$3.3 billion , down 5% sequentially, in line with expectations. - GAAP EPS was
$(0.05) , and core EPS was$0.39 . The difference between GAAP and core EPS primarily reflected constant currency adjustments, translated earnings contract gains, and translation losses on Japanese-yen-denominated debt, as well as restructuring and asset write-off charges. - Year over year, GAAP gross margin improved by 350 basis points and core gross margin improved by 330 basis points while GAAP and core sales declined 12% and 10%, respectively.
- Cash flow continued to improve: GAAP operating cash flow was
$713 million , and adjusted free cash flow was$487 million .
Full-Year 2023:
- GAAP sales were
$12.6 billion , down 11%. Core sales were$13.6 billion , down 8%. - GAAP EPS was
$0.68 , and core EPS was$1.70 . The difference between GAAP and core EPS primarily reflected constant currency adjustments, translated earnings contract gains, and translation gains on Japanese-yen-denominated debt, as well as restructuring and asset write-off charges. - GAAP operating cash flow was
$2 billion , and adjusted free cash flow was$880 million .
First-Quarter 2024 Outlook:
- Management expects first-quarter core sales of approximately
$3.1 billion and core EPS in the range of$0.32 to$0.38 and anticipates the first quarter to be the low quarter of the year.
Schlesinger continued, “For the first quarter of 2024, we expect core sales of approximately
Strategy in Action
Recent highlights include:
- Continuing to set the standard for durable, high-performance smartphone cover materials.
Corning continued its legacy of innovation with itsCorning ® Gorilla® Armor, a new cover material featured on Samsung’s Galaxy S24 Ultra. Gorilla Armor offers an unparalleled combination of durability and visual clarity, delivering a richer display in sunlight and greater protection against damage caused by daily wear. - Advancing optical innovations in broadband, 5G, cloud computing, and advanced AI. Corning’s
Jeffrey Evenson , executive vice president and chief strategy officer, along withAleksandra Boskovic , vice president of technology development,Optical Communications , shared how Corning’s optical fiber innovations and unique value proposition position the company to capitalize on opportunities in telecommunications, cloud computing, and advanced artificial intelligence. To learn more, see Corning’s feature in Bloomberg Intelligence’s Tech Disruptors podcast. - Advancing the driving experience by creating the next generation of automotive-interior displays. Collaboration among
Corning , display leader Tianma, and automaker GAC incorporates Corning’s award-winning LivingHinge™ Technology, which was named a 2024 “Best of Innovation Honoree” by CES® for enabling the display to dynamically bend. Also at CES,Corning unveiled its latest cockpit innovation alongside longtime collaborator BOE Technology Group Co. Ltd. It features a 44.6-inch ultra-large oxide panel withCorning ® ColdForm™ Technology, which touts an independently verified lower environmental impact of at least 25%. - Helping automakers turn windows into system-enabling components. A recent MotorTrend article featured Corning’s new Fusion5™ Glass, which delivers windshields with superior durability, better optical performance, and lighter weight than conventional windshields. The innovative windshield technology helps enable the sensor systems needed for Advanced Driver Assistance Systems and higher levels of autonomy, while providing weight savings needed to extend electric vehicle range.
- Continuing its dedication to providing an equitable workplace. For the second year in a row,
Corning received a score of 100 on the Human Rights Campaign Foundation’s Corporate Equality Index.
Fourth-Quarter and Full-Year 2023 Results and Comparisons
(In millions, except per-share amounts)
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
GAAP | $ | 2,994 | $ | 3,173 | (6 | %) | $ | 3,406 | (12 | %) | $ | 12,588 | $ | 14,189 | (11 | %) | ||||||||||||||||
GAAP Net (Loss) Income (1) | $ | (40 | ) | $ | 164 | * | $ | (36 | ) | 11 | % | $ | 581 | $ | 1,316 | (56 | %) | |||||||||||||||
GAAP Diluted EPS | $ | (0.05 | ) | $ | 0.19 | * | $ | (0.04 | ) | 25 | % | $ | 0.68 | $ | 1.54 | (56 | %) | |||||||||||||||
Core Sales (2) | $ | 3,272 | $ | 3,459 | (5 | %) | $ | 3,633 | (10 | %) | $ | 13,580 | $ | 14,805 | (8 | %) | ||||||||||||||||
Core Net Income (2) | $ | 339 | $ | 386 | (12 | %) | $ | 402 | (16 | %) | $ | 1,463 | $ | 1,794 | (18 | %) | ||||||||||||||||
Core EPS (2) | $ | 0.39 | $ | 0.45 | (13 | %) | $ | 0.47 | (17 | %) | $ | 1.70 | $ | 2.09 | (19 | %) |
(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 2023 Segment Results
The fourth-quarter and full-year 2023 results below are prepared on a basis consistent with
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
$ | 903 | $ | 918 | (2 | %) | $ | 1,195 | (24 | %) | $ | 4,012 | $ | 5,023 | (20 | %) | |||||||||||||||||
Net Income | $ | 88 | $ | 91 | (3 | %) | $ | 130 | (32 | %) | $ | 478 | $ | 661 | (28 | %) |
In
Display Technologies
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
$ | 869 | $ | 972 | (11 | %) | $ | 783 | 11 | % | $ | 3,532 | $ | 3,306 | 7 | % | |||||||||||||||||
Net Income | $ | 232 | $ | 242 | (4 | %) | $ | 171 | 36 | % | $ | 842 | $ | 769 | 9 | % |
In Display Technologies, fourth-quarter sales were
Specialty Materials
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
$ | 473 | $ | 563 | (16 | %) | $ | 505 | (6 | %) | $ | 1,865 | $ | 2,002 | (7 | %) | |||||||||||||||||
Net Income | $ | 58 | $ | 72 | (19 | %) | $ | 78 | (26 | %) | $ | 202 | $ | 340 | (41 | %) |
In Specialty Materials, fourth-quarter sales were
Environmental Technologies
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
$ | 429 | $ | 449 | (4 | %) | $ | 394 | 9 | % | $ | 1,766 | $ | 1,584 | 11 | % | |||||||||||||||||
Net Income | $ | 98 | $ | 99 | (1 | %) | $ | 69 | 42 | % | $ | 386 | $ | 292 | 32 | % |
In Environmental Technologies, fourth-quarter sales were
Life Sciences
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
$ | 242 | $ | 230 | 5 | % | $ | 294 | (18 | %) | $ | 959 | $ | 1,228 | (22 | %) | |||||||||||||||||
Net Income | $ | 17 | $ | 13 | 31 | % | $ | 31 | (45 | %) | $ | 50 | $ | 153 | (67 | %) |
In Life Sciences, fourth-quarter sales were
Hemlock and Emerging Growth Businesses
Q4 2023 | Q3 2023 | % change | Q4 2022 | % change | Full-year 2023 | Full-year 2022 | % change | |||||||||||||||||||||||||
$ | 356 | $ | 327 | 9 | % | $ | 462 | (23 | %) | $ | 1,446 | $ | 1,662 | (13 | %) | |||||||||||||||||
Net (Loss) Income | $ | (19 | ) | $ | (8 | ) | 138 | % | $ | 4 | * | $ | 15 | $ | 39 | (62 | %) |
* 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,” “target,” “estimate,” “forecast” or 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 forward-looking statements relate to, among other things, the company’s future operating performance, the company’s share of new and existing markets, the company’s revenue and earnings growth rates, the company’s ability to innovate and commercialize new products, the company’s expected capital expenditure and the company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company’s manufacturing capacity.
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, there can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws.
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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Investor Relations Contact:
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nicholsoas@corning.com
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Corning Q4 and FY 2023 Earnings Release FinancialsCorning Q4 and FY 2023 Earnings Infographic- Corning Reports Fourth-Quarter and Full-Year 2023 Financial Results
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