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 Communicationsto 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 Electronicsmarket 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.
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.
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Source: Corning Incorporated via Globenewswire