Corning CEO: "Our plans for the next four years reflect a
new growth era"
-
Delivers on 2016-2019 Strategy and Capital
Allocation Framework goals and introduces a new 2020-2023 Strategy
and Growth Framework
-
Expects growth investments to drive 6-8% sales
and 12-15% EPS compound annual growth rates in 2020-2023
-
Targets shareholder distributions of $8 billion
to $10 billion, including annual increases in dividend per share of
at least 10%
CORNING, N.Y. - Corning
Incorporated (NYSE: GLW) will host a meeting today in New York City
with investors and industry analysts to review the company's new
strategic, operational, and financial priorities to deliver
continued growth and create additional value for shareholders. The
new 2020-2023 Strategy and Growth Framework will build on the
success of the company's 2016-2019 Strategy and Capital Allocation
Framework and capture significant organic growth opportunities for
the future. Corning will also discuss progress and pipeline
developments across its five market-access platforms.
"Over the past four years, Corning has created
substantial shareholder value through successful execution of our
Strategy and Capital Allocation Framework," said Wendell P. Weeks,
chairman, chief executive officer, and president. "By the end of
the year, we will have met or exceeded all the goals we set in late
2015, including returning more than $12.5 billion to shareholders,
while investing $11 billion to extend our leadership and deliver
growth. We did what we said we would do, and our shareholders have
benefitted."
"We are excited to introduce our new Strategy and
Growth Framework and provide insights into how Corning will
generate growth and additional value through 2023," Weeks
added.
At today's meeting, senior leaders will outline
the specific leadership priorities and key drivers for the 2020 to
2023 period. Corning expects:
-
6%-8% compound annual sales
growth -primarily driven by organic growth in Corning's
market-access platforms. Specific goals include:
-
Optical Communications to
grow approximately twice as fast as the passive optical market,
driven by 5G and next-gen hyperscale data centers;
-
Automotive market sales to
double by 2023, driven by growth in gasoline particulate filters
and the company's new automotive glass solutions business;
-
Mobile Consumer Electronics
market sales to continue on a path to doubling, as Corning captures
more value per device and wins in new device categories with
Corning®
Gorilla® Glass and
other innovations;
-
Life Sciences Vessels
market sales to grow at least double the industry rate, driven by
cell and gene therapy-related demand; launch of Valor®
Glass for pharmaceutical packaging has potential to become a
multi-billion-dollar franchise;
-
Display to be stable as
price declines remain moderate, television screen size continues to
increase, and Gen 10.5 plants come on line.
-
12%-15% compound annual
earnings per share growth - Corning expects strong compound
earnings per share growth, reflecting strong sales growth, improved
operating margin, and continued share repurchases.
-
Growing operating cash
flow- Based on the expected strong performance through the
2020-2023 Strategy and Growth Framework, Corning anticipates
generating $16 billion to $18 billion in total operating cash flow
before RD&E, up significantly from the $13 billion expected in
2016-2019.
-
Continued investment to extend
leadership and growth - To capture near and long-term growth
opportunities, Corning expects to invest $10 billion to $12 billion
in RD&E, capital and mergers and acquisitions. Its primary
focus on organic growth will continue.
-
Sustained commitment to
delivering attractive shareholder returns - Corning expects to
grow dividends per share at least 10% annually, and to repurchase
shares. The company expects to distribute $8 billion to $10 billion
to shareholders.
"We believe that Corning is more resilient than at
any point in its history," said Tony Tripeny, executive vice
president and chief financial officer. "Our strategic investments
are paying off and our relationships with industry-leading
customers are creating new opportunities for collaboration and
growth. Based on these factors and our record of execution, we are
confident in our ability to meet the long-term goals we are setting
today."
About Today's
Meeting
A live broadcast will be available during the event at
https://investor.corning.com/investor-relations/news-and-events/events-and-presentations/Investor-Day-2019/.
To participate, please call toll free (877) 710-0209 or for
international access call (315) 625-3068 approximately 10-15
minutes prior to the start of the call. Call title is "Corning 2019
Investor Meeting" and conference ID is 8193309. The presentation
used during the investor day and an audio recording of the event
will also be available on the company's Investor Relations website,
https://investor.corning.com/investor-relations/default.aspx.
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. 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.
Caution Concerning
Forward-Looking Statements
The statements contained in this release 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.
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: the effects of acquisitions, dispositions
and other similar transactions, global business, financial,
economic and political conditions; tariffs and import duties;
currency fluctuations between the U.S. dollar and other currencies,
primarily the Japanese yen, euro, Chinese yuan and South Korean
won; product demand and industry capacity; competitive products and
pricing; availability and costs of critical components and
materials; 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; possible disruption in
commercial activities due to terrorist activity, cyber-attack,
armed conflict, political or financial instability, natural
disasters, or major health concerns; unanticipated disruption to
equipment, facilities, IT systems or operations; effect of
regulatory and legal developments; ability to pace capital spending
to anticipated levels of customer demand; rate of technology
change; ability to enforce patents and protect intellectual
property and trade secrets; adverse litigation; product and
components performance issues; retention of key personnel; customer
ability, most notably in the Display Technologies segment, to
maintain profitable operations and obtain financing to fund their
ongoing operations and manufacturing expansions and pay their
receivables when due; loss of significant customers; changes in tax
laws and regulations including the Tax Cuts and Jobs Act of 2017;
the impacts of audits by taxing authorities; and the potential
impact of legislation, government regulations, and other government
action and investigations.
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
(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, 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 more than 165-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 our customers capture new
opportunities in dynamic industries. Today, Corning's markets
include optical communications, mobile consumer electronics,
display technology, automotive, and life sciences vessels.
Corning's industry-leading products include damage-resistant cover
glass for mobile devices; precision glass for advanced displays;
optical fiber, wireless technologies, and connectivity solutions
for state-of-the-art communications networks; trusted products to
accelerate drug discovery and delivery; and clean-air technologies
for cars and trucks.
Media Relations
Contact:
M. Elizabeth
Dann
(607)
974-4989
dannme@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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This
announcement is distributed by West Corporation on behalf of West
Corporation 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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