Corning Reports Strong Third-Quarter 2024 Financial Results(1) Highlighting Key Milestones in ‘Springboard’ Plan to Add More Than $3 Billion in Annualized Sales, and Achieve Operating Margin of 20%, by the End of 2026

Results were at the high end of guidance, led by Optical Communications, which grew sales in its Enterprise business 55% year over year, driven by continued strong adoption of new optical-connectivity products for generative AI

GAAP operating margin expanded 150 bps year over year; core operating margin expanded 160 bps year over year to 18.3%, marking significant progress on ‘Springboard’ target of 20% by the end of 2026

Display Technologies implemented price increases and expects to deliver segment net income of $900 million to $950 million in 2025 and to maintain net income margin of 25%

In the fourth quarter, management expects year-over-year sales growth to accelerate and EPS to grow faster than sales, with core sales of ~$3.75 billion and core EPS in the range of $0.53 to $0.57

(1) Third-quarter GAAP sales were $3.39 billion, and GAAP EPS was $(0.14). Third-quarter core sales were $3.73 billion, and core EPS was $0.54. GAAP operating cash flow was $699 million, and adjusted free cash flow was $553 million.

Corning Incorporated (NYSE: GLW) today announced its third-quarter 2024 results and provided its outlook for fourth-quarter 2024.

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Wendell P. Weeks, chairman and chief executive officer, said, “We delivered another strong quarter of year-over-year growth. Third-quarter core sales grew 8% to $3.73 billion, and core EPS grew 20% – more than double the rate of sales – to $0.54, with core operating margin expanding 160 basis points to 18.3%. These results demonstrate the powerful incrementals embedded in our ‘Springboard’ plan to add more than $3 billion in annualized sales – and achieve operating margin of 20% – by the end of 2026.”

Weeks continued, “In addition to delivering strong third-quarter results, we are marking strategic milestones in our ‘Springboard’ plan. In Display Technologies, we implemented price increases and expect to deliver segment net income of $900 million to $950 million in 2025 and to maintain net income margin of 25%. Additionally, in Optical Communications, our new products for generative AI are seeing strong demand and driving record year-over-year growth in our Enterprise business. We also recently announced a multiyear supply agreement, valued at more than $1 billion, with AT&T to provide next-generation fiber, cable, and connectivity solutions to support the expansion of AT&T’s fiber network and help bring high-speed internet to more Americans.”

Ed Schlesinger, executive vice president and chief financial officer, said, “We had an outstanding third quarter. Our outperformance was led by Optical Communications, with 36% year-over-year sales growth – and 55% sales growth in the Enterprise portion of the segment, driven by continued strong adoption of our new optical connectivity products for generative AI. We also demonstrated progress on the powerful incremental profit and cash flow embedded in our ‘Springboard’ plan – we saw significant operating margin expansion and generated $553 million of adjusted free cash flow.”

Schlesinger continued, “We’re energized by the ‘Springboard’ milestones we’ve hit just three quarters into our three-year plan, and we’re confident that our momentum will continue. In the fourth quarter, we expect year-over-year sales growth to accelerate and EPS to grow faster than sales, with core sales growing about 15%, to approximately $3.75 billion, and core EPS growing approximately 40%, coming in at a range of $0.53 to $0.57.”

Third-Quarter 2024 Financial Highlights:

• GAAP sales were $3.39 billion. Core sales were $3.73 billion.
• GAAP EPS was $(0.14). Core EPS was $0.54. The difference between GAAP and core EPS primarily reflected mainly non-cash, mark-to-market adjustments associated with the company’s translated earnings contracts and Japanese-yen-denominated debt; constant currency adjustments; and non-cash asset write-off charges.
• GAAP gross margin was 33.5%, and core gross margin was 39.2%, reflecting 190-basis-point and 220-basis-point year-over-year improvement, respectively.
• GAAP operating cash flow was $699 million, and adjusted free cash flow was $553 million.

Fourth-Quarter 2024 Outlook:

• In the fourth quarter, management expects year-over-year sales growth to accelerate and EPS to grow faster than sales, with core sales of ~$3.75 billion and core EPS in the range of $0.53 to $0.57.

Third-Quarter 2024 Results and Comparisons

(In millions, except per-share amounts)

Third-Quarter 2024 Segment Results

(In millions)

The third-quarter results below are prepared on a basis consistent with Corning’s segment reporting as presented in the company’s consolidated financial statements.

In Optical Communications, third-quarter sales were $1.2 billion, up 36% year over year, primarily driven by record sales in the Enterprise portion of the business, which was up 55%. Third-quarter net income was $175 million, up 92% year over year, driven by strong incremental profit on the higher volume.

In Display Technologies, third-quarter sales were $1 billion, consistent with the second quarter. Net income was $285 million.

In Specialty Materials, third-quarter sales were $548 million, up 9% sequentially, driven by continued strong demand for premium glass for mobile devices. Third-quarter net income was $72 million, up 14% sequentially.

In Environmental Technologies, third-quarter sales were $382 million, down 11% sequentially, reflecting the continued impact of the Class 8 truck downcycle in North America, as anticipated. Net income was $75 million.

In Life Sciences, third-quarter sales were $244 million, up 6% year over year. Net income was $15 million, up 15% year over year.

In Hemlock and Emerging Growth Businesses, third-quarter sales were $298 million, consistent sequentially.

Upcoming Investor Events

In fourth-quarter 2024, Corning will attend the UBS Global Technology Conference on Dec. 3. Additionally, Corning will be scheduling management visits to investor offices in select cities. Visit the company’s Investor Relations website for up-to-date information.

Third-Quarter Conference Call Information

The company will host its third-quarter conference call on Tuesday, Oct. 29, at 8:30 a.m. EDT. To participate, individuals may preregister here prior to the start of the call. Once the required fields are completed, click “Register.” A telephone number and PIN will be auto generated and will pop up on screen. Participants will have the choice to “Dial In” or have the system “Call Me.” A confirmation email will also be sent with specific dial-in information. To listen to a live audio webcast of the call, go to the company’s Investor Relations events page and follow the instructions.

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 U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis.

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 U.S. and China or other countries, and related impacts on our businesses’ global supply chains and strategies; changes in macroeconomic and market conditions and market volatility, including developments and volatility arising from health crisis events, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas, raw materials and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, New Taiwan dollar, euro, Chinese yuan and South Korean won), the availability of government incentives, decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses; the duration and severity of health crisis events, such as an epidemic or pandemic, and its impact across our businesses on demand, personnel, operations, our global supply chains and stock price; possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; ability to enforce patents and protect intellectual property and trade secrets; disruption to Corning’s, our suppliers’ and manufacturers’ supply chain, equipment, facilities, IT systems or operations; product demand and industry capacity; competitive products and pricing; availability and costs of critical components, materials, equipment, natural resources and utilities; new product development and commercialization; order activity and demand from major customers; the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; the amount and timing of any future dividends; the effects of acquisitions, dispositions and other similar transactions; the effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures; rate of technology change; adverse litigation; product and component performance issues; retention of key personnel; customer ability to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; loss of significant customers; changes in tax laws, regulations and international tax standards; the impacts of audits by taxing authorities; the potential impact of legislation, government regulations, and other government action and investigations; and other risks detailed in Corning’s SEC filings.

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 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 uses its website (https://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, or supplemental to information contained in this or other press releases. 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, with a 170-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning’s capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping its customers capture new opportunities in dynamic industries. Today, Corning’s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences.

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