Corning takes the long view, investing in a set of vital capabilities that are increasingly relevant to profound transformations that touch many facets of daily life. The company drives profitable multiyear growth by inventing, making, and selling life-changing products while cultivating deep, trust-based relationships with industry leaders, ultimately incorporating more content into customers’ offerings. Importantly, we are already well positioned to capture that growth and drive strong operating leverage without substantial cash investments.”Ĭorning strives to be a catalyst for positive change and to help move the world forward. Longer term, we remain confident in our ability to outperform our markets as they recover – and we expect to grow beyond prior-peak sales run rates. ![]() Despite lower sequential fourth-quarter sales, we expect to deliver a gross margin percentage similar to the third quarter and another quarter of strong free cash flow. We will continue our focus on profitability and cash flow. Schlesinger added, “For the fourth quarter, we expect core sales to be approximately $3.25 billion. Additionally, we grew free cash flow to $466 million for the quarter, driven by strong operating cash flow – including inventory reductions – and lower capital expenditures.” Specifically, we expanded core gross margin to 37%, primarily as a result of Display Technologies’ pricing actions. Our strong execution on our plan to improve profitability and cash flow is evident in our numbers. Management expects fourth-quarter core sales of approximately $3.25 billion, core gross margin percentage similar to the third quarter despite the sequential sales decline, core EPS in the range of $0.37 to $0.42, and another quarter of strong free cash flow.Įd Schlesinger, executive vice president and chief financial officer, said, “Sales in the third quarter were consistent sequentially, as expected.Third-quarter free cash flow improved to $466 million, up $156 million sequentially and $211 million year over year.Core gross margin increased by 90 basis points year over year on lower sales, reflecting the continued benefit of pricing and productivity improvement actions across the company. Core gross margin of 37% increased by 80 basis points sequentially on consistent sales, driven primarily by pricing actions in Display Technologies.The difference between GAAP and core EPS primarily reflected constant currency adjustments, translated earnings contract gains, and translation gains on Japanese-yen-denominated debt, as well as restructuring and asset write-off charges. Core EPS of $0.45 was consistent sequentially. Core sales were $3.5 billion, consistent with the second quarter, as expected. Third-quarter GAAP sales were $3.2 billion.This will allow us to grow profitability faster than sales and generate significant incremental cash flow.” As a result, as our markets recover to trend, we can serve them with our existing capacity and capabilities on an improved price and cost platform. In the meantime, we will continue to improve our profitability and cash flow, even in this current muted sales environment. Weeks added, “Our markets continue to reflect demand below trend lines, but our sales will recover, and we will return to growth. For example, we once again worked with Apple to advance the state of the art for smartphones, delivering durable color-infused glass – a first for any smartphone – for the iPhone 15 and iPhone 15 Plus.” ![]() ![]() We also extended our market leadership and executed on ‘More Corning’ content opportunities. We increased third-quarter core gross margin to 37%, a 340 basis-point improvement from the fourth quarter of 2022. Weeks, chairman and chief executive officer, said, “Our third-quarter results show continued progress on our priorities to improve profitability and cash flow, even with weak demand across our markets. Strong free cash flow – despite sequentially lower core sales of $3.25 billionĬorning Incorporated (NYSE: GLW) today announced its third-quarter 2023 results and provided its outlook for fourth-quarter 2023. In Display Technologies, and companywide productivity gainsįor the fourth quarter, management expects similar core gross margin and another quarter of Profitability and free cash flow sequential increases were driven by pricing actions, primarily Operating and free cash flow both grew sequentially and year over year Gross margin percentage expanded sequentially on consistent sales
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