CORNING, N.Y., April 28, 2016
- Speaking at the company's annual meeting of shareholders this
morning, Wendell P. Weeks, Corning Incorporated's (NYSE: GLW)
chairman, chief executive officer, and president, said, "The
company is financially healthy, and we are confident in our ability
to deliver sustainable growth and continue creating value for
shareholders." Weeks acknowledged the tough macroeconomic
environment, but told shareholders, "Corning is tougher."
2015 Performance and 2016 First
Quarter Results
Weeks said that Corning increased its momentum in key areas in
2015, despite economic headwinds and foreign currency fluctuations.
Highlights include:
-
Launched new products such as Corning Lotus(TM)
NXT Glass for high-performance displays and EDGE8(TM) Solutions for
data centers;
-
Secured the first windshield customer for
Corning® Gorilla® Glass for Automotive;
-
Strengthened position in Optical Communications
with strategic acquisitions;
-
Entered into an equity venture to capture a
significant opportunity in pharmaceutical glass packaging;
-
Announced a strategic realignment of Corning's
interest in Dow Corning.
Weeks noted that Corning continues to face
challenges in 2016. On Tuesday, the company announced first quarter
results that, while down year over year, were consistent with
overall profit expectations. Weeks told shareholders that he
expects growth to resume as the year progresses. "Meanwhile, we are
generating strong, consistent operating cash flow, which allows us
to reward our shareholders and invest in our future," he said.
Capital Allocation
Plans
Weeks explained that Corning expected to deploy more than $20
billion through 2019. The company plans to invest $10 billion to
grow and sustain its leadership. Corning also plans to distribute
more than $10 billion to shareholders through annual dividend
increases by a low double-digit percentage per share and through
share repurchases.
"We are executing on our plans," said Weeks. The
company completed a $1.25 billion accelerated stock repurchase
program in January and repurchased an additional $751 million of
outstanding shares during the first quarter. Corning's board of
directors also approved a 12.5% quarterly common stock
dividend.
Growth Opportunities
Turning to the company's growth opportunities, Weeks said, "Key
trends are driving long-term growth across today's businesses, and
our capabilities are becoming increasingly vital to a broad range
of applications."
Weeks shared examples of focus areas in Corning's
major business segments.
-
In Display Technologies, the company is
leveraging its fusion assets to drive the next round of display
innovations, including thinner devices and more lifelike
images.
-
In Optical Communications, Corning is delivering
new connectivity solutions that lower customers' cost, improve
network performance, and meet the unique needs of cloud data
centers.
-
In Specialty Materials, Corning is building on
its leadership position in cover glass by increasing scratch
resistance, improving drop performance, enhancing optical clarity,
and enabling new form factors for mobile devices.
-
In Environmental Technologies, the company is
continuing its track record of making the air cleaner by developing
particulate filters for gasoline direct-injection engines.
-
In Life Sciences, Corning is creating new tools
for drug development, production, storage, and delivery.
Weeks concluded his remarks by underscoring his
confidence in Corning's future based on the company's track record
of performance, distinctive capabilities, and robust innovation
portfolio. He told shareholders, "We always keep our eyes on
the prize - not just another 165 years of innovation and
independence for Corning, but also a world with cleaner air, more
effective medicine, richer entertainment experiences, and more
efficient communication."
Formal Business
During the meeting's formal business, shareholders elected the
following 13 directors to one-year terms: Donald W. Blair, 58;
Stephanie A. Burns, 61; John A. Canning Jr., 71; Richard T. Clark,
70; Robert F. Cummings, Jr, 66; Deborah A. Henretta, 54; Daniel P.
Huttenlocher, 57; Kurt M. Landgraf, 69; Kevin J. Martin, 49;
Deborah D. Rieman, 66; Hansel E. Tookes II, 68; Wendell P. Weeks,
56; and Mark S. Wrighton, 66. They also ratified the appointment of
PricewaterhouseCoopers as the company's independent registered
public accounting firm for 2016 and approved an advisory vote on
executive compensation.
Special
Presentation
Following the meeting, Martin J. Curran, executive vice president
and innovation officer, provided an overview of Corning's Emerging
Innovations Group. Curran shared examples of promising
initiatives, including Corning Pharmaceutical Technologies, which
is addressing the FDA's push for higher pharmaceutical
manufacturing standards by developing a "21st
century glass" to reduce patients' risks from contamination and
breakage. He also explained how the company is leveraging Corning®
Gorilla® Glass for Automotive to make cars cleaner and safer, while
also enhancing the experience for drivers and passengers.
Curran told shareholders, "We're staying true to our strategy of
growing through global innovation."
Webcast Information
The company hosted a live audio webcast of the 2016 annual meeting
of shareholders in Corning, New York, from 11 a.m. to 12:15 p.m.
EDT, April 28, 2016. To access the audio webcast, please go to
www.corning.com/investor_relations, select "Events" and click on
"More Information" next to the annual meeting event. No
password is required. The audio webcast will be archived on the
website for one year.
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 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. Detailed
reconciliations outlining the differences between these non-GAAP
measures and the most directly comparable GAAP measure can be found
on the company's website by going to the Investor Relations page
and clicking "Financial Highlights" under the "Performance" tab.
These reconciliations also accompany 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.
Digital Media
Disclosure
In accordance with guidance provided by the SEC regarding the use
of company websites and social media channels to disclose material
information, Corning Incorporated ("Corning") wishes to notify
investors, media, and other interested parties that it intends to
use its website
(http://www.corning.com/worldwide/en/about-us/news-events.html) to
publish important information about the company, including
information that may be deemed material to investors. The list of
websites and social media channels that the company uses may be
updated on Corning's media and website from time to time. Corning
encourages investors, media, and other interested parties to review
the information Corning may publish through its website and social
media channels as described above, in addition to the company's SEC
filings, press releases, conference calls, and webcasts.
About Corning
Incorporated
Corning (www.corning.com) is one of the world's leading innovators
in materials science. For more than 160 years, Corning has applied
its unparalleled expertise in specialty glass, ceramics, and
optical physics to develop products that have created new
industries and transformed people's lives. Corning succeeds through
sustained investment in R&D, a unique combination of material
and process innovation, and close collaboration with customers to
solve tough technology challenges. Corning's businesses and markets
are constantly evolving. Today, Corning's products enable diverse
industries such as consumer electronics, telecommunications,
transportation, and life sciences. They include damage-resistant
cover glass for smartphones and tablets; precision glass for
advanced displays; optical fiber, wireless technologies, and
connectivity solutions for high-speed communications networks;
trusted products that accelerate drug discovery and manufacturing;
and emissions-control products for cars, trucks, and off-road
vehicles.
Media Relations
Contact:
Daniel F.
Collins
(607)
974-4197
collinsdf@corning.com
Investor Relations Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
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