Corning Inc. Q3 2024: $3.8B Sales, FX Losses Impact
Ticker: GLW · Form: 10-Q · Filed: Nov 1, 2024 · CIK: 24741
Sentiment: neutral
Topics: earnings, foreign-exchange, restructuring
TL;DR
**Corning Q3: Sales flat at $3.8B, but $62M FX loss hits earnings.**
AI Summary
Corning Inc. reported its third-quarter 2024 results, with net sales of $3.8 billion for the nine months ended September 30, 2024, compared to $3.8 billion in the prior year. The company recognized $62 million in non-cash cumulative foreign currency translation losses related to the liquidation of an optical communications manufacturing plant. The income tax provision reflects a tax rate of 21%.
Why It Matters
This filing details Corning's financial performance, including significant foreign currency translation losses impacting profitability, which could affect investor confidence and future strategic decisions.
Risk Assessment
Risk Level: medium — The filing mentions significant non-cash foreign currency translation losses, indicating potential exposure to currency fluctuations and operational challenges.
Key Numbers
- $3.8B — Net Sales (9 months ended Sep 30, 2024) (Represents total revenue generated during the period.)
- $62M — Foreign Currency Translation Losses (Non-cash charges impacting net income due to currency fluctuations.)
- 21% — Income Tax Rate (The effective tax rate applied to the company's income.)
Key Players & Entities
- Corning Inc. (company) — Filer
- September 30, 2024 (date) — Reporting period end date
- $3.8 billion (dollar_amount) — Net sales for the nine months ended September 30, 2024
- $62 million (dollar_amount) — Non-cash cumulative foreign currency translation losses
- 21% (dollar_amount) — Income tax rate
FAQ
What was the primary reason for the $62 million in non-cash cumulative foreign currency translation losses?
The losses primarily relate to the substantial liquidation of an optical communications manufacturing plant.
What was Corning Inc.'s net sales for the nine months ended September 30, 2024?
Net sales for the nine months ended September 30, 2024, were $3.8 billion.
What is the reported income tax rate for the period?
The income tax provision reflects a tax rate of 21%.
What type of charges are included in the amounts associated with the plant liquidation?
The amounts include charges for impairment losses, asset write-offs, accelerated depreciation, disposal costs, and inventory write-downs.
What is the fiscal year end for Corning Inc.?
Corning Inc.'s fiscal year ends on December 31.
Filing Stats: 4,842 words · 19 min read · ~16 pages · Grade level 15.7 · Accepted 2024-11-01 10:59:58
Key Financial Figures
- $0.50 — ange on which registered Common Stock, $0.50 par value per share GLW New York St
Filing Documents
- glw20240930_10q.htm (10-Q) — 2289KB
- ex_708016.htm (EX-31.1) — 11KB
- ex_708017.htm (EX-31.2) — 11KB
- ex_708018.htm (EX-32) — 6KB
- 0001437749-24-032912.txt ( ) — 9783KB
- glw-20240930.xsd (EX-101.SCH) — 67KB
- glw-20240930_cal.xml (EX-101.CAL) — 61KB
- glw-20240930_def.xml (EX-101.DEF) — 441KB
- glw-20240930_lab.xml (EX-101.LAB) — 386KB
- glw-20240930_pre.xml (EX-101.PRE) — 479KB
- glw20240930_10q_htm.xml (XML) — 2029KB
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION Page
Financial Statements
Item 1. Financial Statements Consolidated Statements of (Loss) Income 3 Consolidated Statements of Comprehensive Income (Loss) 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 41
Other Information
Item 5. Other Information 41
Exhibits
Item 6. Exhibits 42
Signatures
Signatures 43 2 Table of Contents Consolidated Statements of (Loss) Income Corning Incorporated and Subsidiary Companies (Unaudited; in millions, except per share amounts) Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Net sales $ 3,391 $ 3,173 $ 9,617 $ 9,594 Cost of sales 2,254 2,169 6,538 6,574 Gross margin 1,137 1,004 3,079 3,020 Operating expenses: Selling, general and administrative expenses 510 468 1,432 1,329 Research, development and engineering expenses 294 270 814 787 Amortization of purchased intangibles 31 30 91 92 Operating income 302 236 742 812 Interest income 12 10 34 25 Interest expense ( 83 ) ( 82 ) ( 250 ) ( 239 ) Translated earnings contract (loss) gain, net (Note 12) ( 157 ) 20 ( 91 ) 128 Other (loss) income, net ( 166 ) 33 ( 59 ) 128 (Loss) income before income taxes ( 92 ) 217 376 854 Provision for income taxes (Note 4) ( 3 ) ( 35 ) ( 124 ) ( 178 ) Net (loss) income ( 95 ) 182 252 676 Net income attributable to non-controlling interest ( 22 ) ( 18 ) ( 56 ) ( 55 ) Net (loss) income attributable to Corning Incorporated $ ( 117 ) $ 164 $ 196 $ 621 (Loss) earnings per common share available to common shareholders: Basic (Note 5) $ ( 0.14 ) $ 0.19 $ 0.23 $ 0.73 Diluted (Note 5) $ ( 0.14 ) $ 0.19 $ 0.23 $ 0.72 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents Consolidated Statements of Comprehensive Income (Loss) Corning Incorporated and Subsidiary Companies (Unaudited; in millions) Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Net (loss) income $ ( 95 ) $ 182 $ 252 $ 676 Foreign currency translation adjustments and other 625 ( 191 ) 73 ( 593 )
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,