Corning Announces Second-Quarter Results

Corning Incorporated has announced second-quarter sales of $1.26 billion and net income of $514 million, or $0.32 per share. These results include net special gains of $93 million, or $0.06 per share.

Excluding these net special gains, Corning's second-quarter net income would have been $421 million, or $0.26 per share. These are non-GAAP financial measures. These and all non-GAAP financial measures are reconciled on the company's investor relations Web site and in attachments to this news release.

Wendell P. Weeks, president and chief executive officer, said, "We were pleased to meet our earnings-per-share (EPS) guidance as we overcame the impact of the second-quarter panel inventory correction on our Display Technologies segment. The decline in Display Technologies' quarterly performance was offset by strength in our Telecommunications segment and lower operating expenses."

Corning's second-quarter results included the following special gains and charges:

• A $61 million gain primarily to reflect the decrease in the market value of Corning common stock to be contributed to settle the asbestos litigation related to Pittsburgh Corning Corporation.
• A $10 million reduction in income tax expense related to the release of the valuation allowance on certain deferred tax assets in Australia.
• A gain of $33 million in equity earnings related to Dow Corning Corporation's settlement with the U.S. Internal Revenue Service regarding liabilities for tax years 1992 to 2003. The settlement resolves all federal tax issues related to Dow Corning's implant settlement.
• An $11 million charge related to Corning's ongoing debt-reduction program.

http://www.corning.com