Corning Inc. Q2 Sales Flat, EPS Halved

TL;DR

Corning's Q2 sales flat at $3.8B, but EPS got cut in half to $0.28. Watch out.

AI Summary

Corning Inc. reported its Q2 2024 results, with net sales of $3.8 billion, largely flat compared to the prior year's $3.8 billion. The company's net income attributable to Corning Incorporated was $0.28 per share, down from $0.56 per share in the same period last year. Corning's financial statements for the period ending June 30, 2024, were filed on August 2, 2024.

Why It Matters

This filing provides insight into Corning's financial performance in the second quarter of 2024, impacting investor confidence and future strategic decisions.

Risk Assessment

Risk Level: medium — The significant drop in earnings per share suggests potential underlying business challenges or increased costs impacting profitability.

Key Numbers

• $3.8B — Net Sales (Q2 2024 net sales were $3.8 billion, same as Q2 2023.)
• $0.28 — EPS (Q2 2024 diluted EPS was $0.28, down from $0.56 in Q2 2023.)
• $14,562 — Total Assets (Total assets as of June 30, 2024, were $14,562 million.)
• $985 — Cash and Cash Equivalents (Cash and cash equivalents were $985 million as of June 30, 2024.)
• $1,175 — Long-Term Debt (Long-term debt was $1,175 million as of June 30, 2024.)

Key Players & Entities

• CORNING INC /NY (company) — Filer
• 20240630 (date) — Period of Report
• 20240802 (date) — Filing Date
• 3.8 (dollar_amount) — Net Sales for Q2 2024
• 0.28 (dollar_amount) — Net Income per Share for Q2 2024

FAQ

Key Financial Figures

• $0.50 — ange on which registered Common Stock, $0.50 par value per share GLW New York St

Filing Documents

• glw20240630_10q.htm (10-Q) — 2213KB
• ex_672528.htm (EX-31.1) — 11KB
• ex_672529.htm (EX-31.2) — 11KB
• ex_672530.htm (EX-32) — 6KB
• 0001437749-24-024494.txt ( ) — 9366KB
• glw-20240630.xsd (EX-101.SCH) — 64KB
• glw-20240630_cal.xml (EX-101.CAL) — 56KB
• glw-20240630_def.xml (EX-101.DEF) — 432KB
• glw-20240630_lab.xml (EX-101.LAB) — 374KB
• glw-20240630_pre.xml (EX-101.PRE) — 468KB
• glw20240630_10q_htm.xml (XML) — 1891KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements Consolidated Statements of Income 3 Consolidated Statements of Comprehensive (Loss) Income 4 Consolidated Balance Sheets 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Changes in Shareholders' Equity 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 40

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 43

Signatures

Signatures 44 2 Table of Contents Consolidated Statements of Income Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except per share amounts) Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Net sales $ 3,251 $ 3,243 $ 6,226 $ 6,421 Cost of sales 2,302 2,230 4,284 4,405 Gross margin 949 1,013 1,942 2,016 Operating expenses: Selling, general and administrative expenses 471 440 922 861 Research, development and engineering expenses 262 263 520 517 Amortization of purchased intangibles 30 31 60 62 Operating income 186 279 440 576 Interest income 10 8 22 15 Interest expense ( 84 ) ( 81 ) ( 167 ) ( 157 ) Translated earnings contract gain, net (Note 12) 27 116 66 108 Other income, net 33 87 107 95 Income before income taxes 172 409 468 637 Provision for income taxes (Note 4) ( 50 ) ( 106 ) ( 121 ) ( 143 ) Net income 122 303 347 494 Net income attributable to non-controlling interest ( 18 ) ( 22 ) ( 34 ) ( 37 ) Net income attributable to Corning Incorporated $ 104 $ 281 $ 313 $ 457 Earnings per common share available to common shareholders: Basic (Note 5) $ 0.12 $ 0.33 $ 0.37 $ 0.54 Diluted (Note 5) $ 0.12 $ 0.33 $ 0.36 $ 0.53 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents Consolidated Statements of Comprehensive (Loss) Income Corning Incorporated and Subsidiary Companies (Unaudited; in millions) Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Net income $ 122 $ 303 $ 347 $ 494 Foreign currency translation adjustments and other ( 222 ) ( 318 ) ( 552 ) ( 402 ) Unamortized gain (losses) and prior service costs for postretirement benefit plans 37 ( 4 ) 39 ( 8 ) Realized and unrealized (losses) gains on derivatives ( 32 ) 20 ( 31 ) 41 Other comprehensive loss, net of tax ( 217 ) ( 302

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation In these notes, the terms "Corning," "Company," "we," "us," or "our" mean Corning Incorporated and its subsidiary companies. The consolidated financial statements include the consolidated accounts of Corning Incorporated and its subsidiaries consolidated in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the periods presented. All intercompany accounts, transactions and profits have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10 -K for the year ended December 31, 2023 (" 2023 Form 10 -K"). The results of operations for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities in the consolidated financial statements and related notes. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates,

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