Exhibit 99.1
[LOGO] |
Corning Incorporated Second Quarter 2006 Conference Call July 26, 2006
|
Forward Looking and Cautionary Certain statements in this presentation constitute “forward looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on current expectations and involve certain risks and uncertainties. Actual results might differ from those projected in the forward looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward looking statements is contained in the Securities and Exchange Commission filings on the Company and at the end of this presentation.
|
Second Quarter 2006 Results Amounts in millions, except per share data. *These are Non-GAAP financial measures, as they exclude special items. Please refer to the GAAP reconciliation on our web site. Sequential Yr over Yr Q2 2006 Q1 2006 % Change Q2 2005 % Change Sales $1,261 $1,262 - $1,141 11% NPAT* 421 425 (1%) 312 35% EPS* 0.26 0.27 (4%) 0.20 30%
|
GAAP Reconciliation Per Share Net Income $ 514 $0.32 Total EPS and net income 61 10 (11) 33 0.04 0.01 (0.01) 0.02 Special items: Asbestos settlement Provision for income taxes Retirement of debt Equity in earnings, net of impairments $ 421 $ 0.26 Earnings per share (EPS) and net income, excluding special items
|
Income Statement $124 9.8% $200 $128 10.2% $256 RD&E • $ • % of Sales Equity Earnings* $223 17.7% $194 15.4% SG&A • $ • % of Sales 45% 43% Gross Margin $1,262 $1,261 Sales Q1 2006 Q2 2006 $ Amounts in millions *Q2 2006 equity earnings include a $33 million gain, Q1 2006 equity earnings include a $21 million impairment
|
$417 $344 Net Income $142 $135 Equity Earnings Upper single digit decline Up 10% Down slightly Decline less than Q1 Up 3% Down slightly Sequential Pricing SCP Sequential Volume SCP Sequential Price Up 15% Down 14% Sequential Volume $547 $461 Sales Q1 2006 Q2 2006 Display Segment $ Amounts in millions
|
24% 22% 25% 29% 17% 21% 25% 37% 10% 20% 30% 40% 50% Q1 Q2 Q3 Q4 Seasonality of LCD monitors and LCD TV 21% 22% 26% 31% 10% 20% 30% 40% Q1 Q2 Q3 Q4 Sets into Retail Distribution % of LCD monitor (’03-’05) 22% 21% 25% 32% 10% 20% 30% 40% Q1 Q2 Q3 Q4 Sets from Retails to Consumers % of LCD monitor (’03-’05) Seasonality of LCD monitors Seasonality of LCD TV vs. All TV % of TVs sold (’03-’05) All TV LCD Sets into Retail Distribution 25% 20% 32% 15% 17% 24% 44% 23% 10% 20% 30% 40% 50% Q1 Q2 Q3 Q4 % of TVs sold (’03-’05) All TV LCD Sets from Retails to Consumers
|
Environmental and Life Sciences Segments (5) (2) Net Income (Loss) $72 $75 Sales Life Sciences (1) 9 Net Income $155 $152 Sales Environmental Q1 2006 Q2 2006 $ Amounts in millions
|
Telecommunications Segment 1 40 Net Income 397 472 Total Telecommunications Segment 205 234 Fiber and Cable $192 $238 Hardware and Equipment Q1 2006 Q2 2006 $ Amounts in millions
|
Balance Sheet $616 $1,811 ($123) $664 $1,497 $299 Inventory Debt (short term and long term) Free cash flow* $2,478 $2,475 Cash and short term investments Q1 2006 Q2 2006 $ Amounts in millions *Free cash flow is a non-GAAP measure. Please refer to the GAAP reconciliation on our web site.
|
Q3 2006 Outlook $0.22 - $0.26 EPS Excluding Special Items $1.26 billion - $1.33 billion Sales
|
Q3 2006 Outlook Flat to Down Slightly Flat to Down Slightly Flat to Down Slightly Segment Sales Fiber and Cable Sales Hardware and Equipment Sales Consistent with Q2 Consistent with Q2 Up 5% - 10% Environmental Segment Sales Life Science Segment Sales Other Reportable Businesses Sales Telecommunications Segment Declines consistent with Q2 Declines more than Q2 Price Wholly owned business Samsung Corning Precision Up 5% - 15% Total Display Segments Up 5% - 15% Samsung Corning Precision Up 5% - 15% Wholly owned business Volume Display Segment All Data Sequential
|
Q3 2006 Outlook ~ 1.59 billion Shares 15% - 20% Tax Rate Down 5% - 10% Equity Earnings ~10% of Sales RD&E ~17% of Sales SG&A Between 41% and 43% Gross Margin $0.22 - $0.26 EPS Excluding Special Items $1.26 billion - $1.33 billion Sales
|
Q&A Session
|
Forward Looking and Cautionary This presentation contains forward looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic conditions; currency exchange rates; 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; capital spending by larger customers in the telecommunications industry and other business segments; the mix of sales between premium and non-premium products; possible disruption in commercial activities due to terrorist activity and armed conflict; ability to obtain financing and capital on commercially reasonable terms; acquisition and divestiture activities; the level of excess or obsolete inventory; the ability to enforce patents; product and components performance issues; and litigation. These and other risk factors are identified in Corning’s filings with the Securities and Exchange Commission. Forward looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
|
[LOGO] |