Corning Incorporated Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter and Full Year of 2017; Provides Annual Dividend Guidance
January 24, 2017 at 07:13 am
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Corning Incorporated announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net sales of $2,476 million against $2,231 million a year ago. Operating income was $432 million against $87 million a year ago. Income before income taxes was $2,404 million against $169 million a year ago. Net income attributable to the company was $1,572 million against $224 million a year ago. Diluted earnings per common share attributable to the company were $1.47 against $0.17 a year ago. Net cash provided by operating activities was $1,405 million against $964 million a year ago. Capital expenditures were $294 million against $311 million a year ago. Diluted core earnings available to common stockholders were $534 million against $429 million a year ago. Core diluted earnings per common share were $0.50 against $0.34 a year ago. Adjusted cash flows from operating activities were $1,322 million. On the non-GAAP basis, net sales were $2,551 million against $2,402 million a year ago. Income before income taxes was $642 million against $448 million a year ago. Net income was $534 million or $0.50 per share against $429 or $0.34 per share a year ago.
For the year, the company reported net sales of $9,390 million against $9,111 million a year ago. Operating income was $1,391 million against $1,322 million a year ago. Income before income taxes was $3,692 million against $1,486 million a year ago. Net income attributable to the company was $3,695 million against $1,339 million a year ago. Diluted earnings per common share attributable to the company were $3.23 against $1.00 a year ago. Net cash provided by operating activities was $2,500 million against $2,809 million a year ago. Capital expenditures were $1,109 million against $1,250 million a year ago. Diluted core earnings available to common stockholders were $1,774 million against $1,882 million a year ago. Core diluted earnings per common share were $1.55 against $1.40 a year ago. Adjusted cash flows from operating activities were $2,748 million. On the non-GAAP basis, net sales were $9,710 million against $9,800 million a year ago. Income before income taxes was $2,096 million against $2,190 million a year ago. Net income was $1,774 million or $1.55 per share against $1,882 or $1.40 per share a year ago.
For full-year 2017, the company expects the rate of growth in both retail market and glass demand to be in the mid-single digit percentages. The company anticipates investing a total of about $1.5 billion in the year 2017, which is up from 2016. The company also expects effective tax rate for full year 2017 and the first quarter will be approximately 17% to 18%.
In the first quarter of 2017, the company expects its volume to increase by mid-teen percentage year over year, and decline by mid-single digit percentage sequentially. The company expects an overall favorable LCD glass price environment for the full year, with price declines more moderate than in 2016. The company expects year-over-year sales, net income, and EPS growth in the first quarter of 2017. Gross margin will be in the range of 42% to 43%, and SG&A and RD&E spending should be approximately 14% and 9% of sales, respectively.
In addition, the company expects the board to approve an increase of at least 10% per share in the annual dividend rate, in line with the framework.
Corning Incorporated is the world leader of the production and the marketing of substrata of glass and ceramic of specialty. Net sales break down by market as follows:
- telecommunications (29.6%): products of fiber optical, cables, etc. for networks of communication;
- electronic large public (26%): glass substrata intended for screens of televisions sets LCD, PC and laptops;
- environment (13%): substrata of ceramic and filters intended for systems fight against vehicles emissions;
- life science (7.1%): in particular optical biosensors for pharmaceutical research;
- other (24.3%): solutions based on plastic and glass of specialty intended notably to the sectors of semiconductors, aerospace, defense, astronomy and metrology.
Net sales are distributed geographically as follows: the United States (32.7%), North America (3%), Asia/Pacific (51.5%), Europe (11.3%) and other (1.5%).
Corning Incorporated Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter and Full Year of 2017; Provides Annual Dividend Guidance