GLW - Earnings call transcript Q4 2024

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Operator

Welcome to the Corning Incorporated Quarter 4 2024 Earnings Call. [Operator Instructions]

It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations.

Ann Nicholson

Thank you, and good morning. Welcome to Corning's Fourth Quarter 2024 Earnings Call. Wendell Executive and Financial Vice are and Executive Officer. today Schlesinger, Ed President me Weeks, Chief Chairman Officer; With and Chief

statements financial other Reform materially. detailed Act I'd remarks XXXX. to These meaning you differ remind risks, of reports. could the that uncertainties in cause involve forward-looking results and of Litigation like are the that fall the These Securities that Private factors statements company's within factors to contain today's actual

we'll be performance that our consolidated specifically You our core note should to discussing results using measures, indicate also we unless GAAP comments relate data.

Our used by performance management are business. the core non-GAAP measures to measures analyze

and quarter, currency reflected difference associated company's noncash adjustments and Japanese the GAAP and as contracts other the the well as yen-denominated noncash fourth adjustments charges. debt constant mark-to-market core primarily with For earnings between translated

has As impact no on a our mark-to-market the flow. reminder, accounting cash

A our reconciliation found to Investor be results the Relations comparable at can value website the GAAP of core section corning.com. of in

You Interactive Analyst results may also our downloading. the live slides along. being are encourage to financials Supporting on follow website on with shown downloadable on you also They're our webcast. Center. in We website available access our for core

to over And turn the now I'll call Wendell.

Wendell Weeks

Ann, you, good Thank morning, and everyone.

by grew quarter and fourth basis EPS grew another points outstanding XX% sales XXXX $X.XX. and quarter. XXX announced we billion results. to Today, expanded We record to a XX% year full We margin operating $X.X had XX.X%. year-over-year We to

We also to basis points XX.X%. expanded on XXX return invested capital

generated cash for strong up flow, free delivering for billion Additionally, XXXX, full year, $X.XX XX%. we the

terrific first a of capped results Springboard. these off Overall, year

review our our to in performance I of the Springboard plan. So context want

run $X annualized upward cyclical we're end out across markets. pursuing laid driven the and by sales company to of billion of by growth trends secular our convergence XXXX, of As in the the you, in rate we've

created plan this taken we've nonrisk-adjusted plan internal investors. confidence a and high And for

the by a which focused opportunity billion First, $X time nonrisk-adjusted end X-year on of period, a reflects XXXX. we

our probabilistically well secular we volume, potential businesses our all and different down potential of market pricing timing innovations our some that as adjusted including dynamics, across of outcomes, may through of cycles. as go of share the and for Second, adoption successful trends, markets market

how billion we more annualized to plan achieve sales And Springboard XXXX. margin to by of this add our than formulated the high-confidence in is operating of XX% $X end and

every to we billion remember, important XX Springboard We drew wedge. quarters. next the it's $X a However, guide plan the quarter purposely weren't trying as for to

to you as we're can start. see, So off a great

billion. Our sales quarter $X.X were X

rate X annualized $X.X in billion demonstrated we of incrementals growth, base. we powerful sales our the added sales So Springboard year And to in embedded that our the plan. are plan, run from on that our strong

the grew XXXX, to fourth out year a points we delivering basis generation, ROIC we XX% cash in quarter, XX%. to XXX points up flow margin XXX expanded Year-over-year, EPS XX.X%. strong by of basis $X.XX expanded in We and to operating billion XX.X% $X.XX, we closed free

XXXX, we Springboard, it told In key milestones and a high-confidence So hit plan? our Optical. versus we a what's we milestone-based outperformance Display you When strategic in that was introduced plan. driving

half Springboard our segment. prices In the income. maintaining in a consistent environment, we yen in profitability stable plan Display, is the achieve raised To dollar U.S. this on in net weaker second deliver XXXX centered glass to of

net Springboard $XXX for to we're to base providing our of of years. to deliver year margin last X income XX%, Display consistent expect million We a income in growth. with deliver this net and Overall, strong the $XXX million

growth business AI June We said at our new And grow is our expected annual our drive introduced we XXXX. Communications, Springboard rate Optical In of Gen to in products to revenue we compound growth, trends for through unique upward as about cyclical enterprise plan converge secular and capabilities. a demand XX% XXXX.

the for AI And grew XX% portion of the opportunity year-over-year grew data Demand and our in XX% growth up for in enterprise quarter, each the $X record billion, AI That to the and Optical business new quarter. our year, grew reflects year-over-year. center. fourth Enterprise inside Gen a Gen products the sales full

We've also introduced network AI-enabled a to new cities. centers to build customers set a our interconnect of innovations data the between help

month, begun beyond. strong Overall, in this and As deployment our our we that XXXX, outside new cable part capacity expect And data of from Lumen demand to XXXX XX% fit billion enables AI sales Technologies, we $X.X of of anywhere new of first Corning's into conduit. X which XXXX Optical fiber in XX% their of to Optical to existing has an new in center agreement And quarter, fourth reserves and started drove fiber plant deploying growth. customer the the year-over-year we and response and products. with our reflecting the Lumen in growing continued Lumen launched shipping, global Gen just interconnect for fiber Xx amount products system

I've portfolio, XXXX. And key Springboard including sales X just So that We're the our our rate end the our extends the a opportunity in solar, that above automotive X. by will sales and made the rich run increases of probability that high-confidence set our to of highlighted across progress mobile we've be consumer outperformance the are pursuing milestones contributing year of plan electronics.

Springboard plan we $X event. billion upgrade March at a result, investor our are As our planning to

moment help a it. you take let's understand how we're So about to thinking

XXXX. rate pursuing nonrisk-adjusted in shared already add that to billion by businesses of collectively billion $X a with run I've XXXX sales and end plan First, $X the you end annualized are by our of the

remain planning cycle, Now targets appropriate. we've comfortable that just strategy and those are we completed our

plan not this nonrisk-adjusted changing our time. at we're So

confidence plans that right works. that's our the because But balanced come plan nonrisk-adjusted XXXX. be not of billion sales internal fruition. for benefit exactly to high the opportunities plan our translated multiple portfolio add including course, thesis just $X timing, on investable annualized for how exciting by potential by future more provided our We won't high-confidence we we than you and our of everything, end a many Of you of know our the outcomes, to into in will accounting is

X-year we're against potential though key success. likelihood positive we X our high-confidence of So stand for the the progress therefore, into only year Even outcomes increases milestones and our where today? plan, do

example, on puts of For the positive AI tremendous products Gen response us distribution. side the to that our

Our display momentum also pricing puts us that our positive positive in the on And seeing you're numbers. side.

at as upgrade as So you, investor will with just March high-confidence I portfolio, event. our shared we progress across $X our result our a plan our billion of

here's leave you things to turn I over to I'd Before what Ed, today. like with

to $X.X our rate And in that annualized our profitability Overall, our a at to grow March. as to sales, run and more you quarter from drive of forward and first we I Our cyclical terrific we're capped significantly trends look a got we're milestones a quarter company on more Springboard sales we strong an X through benefit when We've detail to across growth X. we of beyond. with ahead, outstanding year secular businesses off get the quarter XXXX We together was rate. many convergence added in sharing positioned the plan. and growing faster making billion progress

over to turn I'll it that, Ed. With

Edward Schlesinger

morning, Good you, Thank Wendell. everyone.

our Cyclical had you strong Springboard another year quarter for and products. our first heard, driving As demand a we just secular and plan. completed are trends outstanding of

capital capabilities and cost financials. are of end capacity place XXXX, the already the and reflected more technical add have by billion $X and than in to in the sales our in We annualized

we we as that, expect than means this profit grow sales. So to faster grow, significantly

momentum of XX% achieve to marking And Operating Xx continue the XXXX. by $X.XX, strong we've you margin our exactly end was operating than XX.X%, quarter, that's to $X.X grew progress we the EPS more in the grew sales. shared in quarter. and XXXX. Overall, XX% a to expect fourth rate billion target the of on what saw terrific Sales XXX year-over-year it and points to expanded basis to XX% margin

billion, first Springboard to the grow $X.XX of Based expect to core track growing quarter, year-over-year XX% of our we approximately $X.X to plan. a performance, In range $X.XX. with EPS ahead on XX% continue to our to sales strong we approximately

quarter to year details perspective this morning, want our So I on full more results. share and and

points $XX.X grew We time, we For million $XXX $X.XX cash year versus expanded by free the billion. prior a the Gross XX% same At XX.X%. margin full basis to grew increased point XX.X% operating to to X% the XXX sales flow to percentage full $X.XX. margin to expanded billion. year, EPS and

products. full year-over-year. year, Moving XX% XX% our Gen This sales Enterprise marks to billion. In billion, were the segments. $XXX for And XX% strong adoption year-over-year, $X quarter, In billion. $X.XX new to $X.XX Full Optical this Communications, the grew growth up quarter AI business. year XX% another record fourth in million to the sales of up quarter business, enterprise were the sales driven by continued for grew our of

customers profit as higher year-over-year grew of fourth full the income business deployment. year closer our continue their buy the carrier on quarter in rates to Net reflected quarter also to fourth strong incremental for in and volume. We

fourth to the in For XXX% expect our continued the net year, Optical capabilities quarter, income full $XXX grew year-over-year the And million. Overall, drive XX% Communications we Optical income for $XXX to XXXX segment unique net for million. to in grew Communications and growth beyond.

customer to In public by announcements. indicated conversations carrier, in deployments and XXXX expect we carrier as increase

demand in data beginning just growing ship AI, the We interconnect Lumen to quarter. our for also products first for new products we're to and connectivity expect our center Gen

larger $X.XX million, driven million. income up Full as sales China. Technologies. their quarter, in upped The Display Net were grew XX% to Late to was square and feet driven Moving stimulus year as $XXX billion. Net size. market by makers government income sales screen increased $XXX in glass grew Fourth set panel by year-over-year utilization XX%. up retail orders quarter XX% average measured makers their rates was the in year-over-year.

expect quarter in the makers these of XXXX. to rates at continue We first utilization panel

and in in a quarter implemented second ensure raised to maintain prices weaker half September double-digit net in dollar in we price yen can segment. U.S. our you the consistent to stable the call, third increases with we deliver glass XXXX profitability of shared we income As We've environment. on earnings successfully

million X income with million margin and We to expect in net net years. last consistent continue $XXX of XX%, of income XXXX deliver $XXX to to the

to $XXX Materials. quarter, on was down were Advanced the strong as income demand $XXX year content sales Specialty fourth billion, X% in Optics. X% $X our quarter XX% sequentially. to volumes up advanced million, and glass year-over-year our Turning to in strong fourth to Net year for full well X% Full reflecting higher Gorilla as premium both In strategy as XX% and up $XX and for incrementals innovations. grew year-over-year million, More grew sales the Corning million we the

down lower In and reflecting income global year-over-year, weaker experience our and Net X% income XXXX, for heavy-duty heavy-duty heavy-duty Environmental year-over-year, by million, markets X% $XXX down year-over-year Net Europe. X% were remain XX% full million, Europe. light-duty continued particularly sales driven market to slightly, be markets, primarily Full North in global fourth to $XX down sales Technologies, was the down lower volume. sales. year In the the industry were on QX down weaker $XXX we quarter light-duty million market flat was year as of for expect analysts for in America. to in

In market stabilized Net throughout million, $XXX Life sales were net quarter year-over-year. significantly sales. income Sciences, sales X% XX%, and grew million, the $XXX year year. year-over-year, grew up the X% fourth up income Full faster were than X% as

Businesses, Full billion. finally, year were $XXX Hemlock $X.XX Growth Emerging X% million, fourth in And year-over-year. were quarter up and sales sales

we XX% see, a on billion, quarter, $X.XX to grow expect expect our to continue. core growing And as of can we're you As XXXX, we the we XX% approximately progress sales $X.X with EPS to to approximately to In enter year-over-year range momentum Springboard. strong first $X.XX. making

Additionally, our XXXX yen we exposure XXXX. hedged for and have

resetting to yen in have be We our the consistent XXXX. XXXX, to our In rate dollar, JPY hedges beyond rate. place with core we also hedge XXX will

million margin in XXXX expect income of expect JPY the We as financials have And $XXX plan We consistent I deliver Display XXXX years. and net said at we last the profitability XX%, the maintain to not in rate. X million in to rate in QX earlier, we $XXX the recast our same core to XXX reflected do new our guidance. Display, core with net to income because of

than spend on I in like more minute of the to add a allocation. billion XXXX. have capabilities by $X I'd place the capacity end you sales and Now told that capital annualized technical we in to

XXXX. to plan our flow capture year in deliver proof point as and we sales So the grew opportunity from by is billion. in profit the flow cash cash in strong One the outlined cash our expect to XX% significant we expect growth as we Springboard Springboard execution we that plan. generate first XXXX of $X.XX to of continues, And incremental free

allocation value capital the for $X.X expect we to our the shareholders We organic XXXX, We believe term. capital long our remain expenditures priorities creates for Our most growth same. In over opportunities. this approximately prioritize the billion. be investing

strong We're and balance also here. We maintain seek shape sheet. efficient a to in great

We have one the in S&P XXX. longest the tenors of debt

Our average expect shareholders. buy XX cash returning over so back due debt to and to current coming continue to debt record we coming started quarter, only and significant of X about any with excess about finally, we years, continued And years, in the in we have maturity is no to strong year. our shares do the billion We in $X.X second have throughout XXXX. debt track given next due

grew for Compared Springboard. outstanding point QX up quarter today, to sales that as $X.X marking margin fourth on a and capped our strong wrap year-over-year So shared billion, I XXXX, EPS like first had to points we XX% we've starting expanded Springboard, operating XXXX. to that XX% the of XX.X%, of an off progress end strong to margin operating grew I'd by $X.XX basis the XX% to with achieve target year reiterate XXX

we quarter, EPS first faster. the with ahead, expect throughout momentum to XXXX. growth And sustain our year-over-year Xx expect about we in Looking sales XX% growing

to In we end forward our the our annualized to $X in high-confidence XXXX, an we're update with by of Springboard ahead tracking investor and provide plan plan total, of to our high-confidence look more event add than sales we when plan. you March billion to

Ann. I'll everyone. you, back to turn Thank that, with it over And

Ann Nicholson

Ed. Thanks,

question. Okay. Operator, first the for ready we're

Operator

question first of line Chatterjee the comes Our Samik from JPMorgan. Instructions] with [Operator

Unknown Analyst

the those plan? for the feeling the just the your lingering your there to still is get comments Joe Corning the is you trying at around or or you navigate is Cardoso guess question, maybe to the for you're upgrade bit and investor one an plan, Obviously, that about at I'm flesh potential on that your provided. still upgrade just XXXX the X a major non-risk-adjusted Samik. for risk-adjusted perspective just us This plan. event. But plans, somewhere so, achieve if could target. comfortable maybe nonrisk-adjusted of risks to help not to upgrade looking And Wendell, implications I that between target least more the ahead around out can you the least land can However, think risk from to XXXX the relative maybe

Wendell Weeks

question, the for thanks So Joe.

had I and which through we remain we're the billion. think to you saying. that our all of exactly actually, plan quite is, what we in that, When your yes, question, scenarios, various That through you strategic $X go answer, we came back understand full generate review, is where way work appropriate. target those long-term our

being X shifted distribution if with full And numbers happened what's plan. the a at between that, towards higher of take is outcomes, our potential the risk-adjusted you that probability has look more that that probable underneath and

time, And clear? number make ahead. a fill have at confusing, we'll will March. talk that we'll are So Or that do in is milestones we'll more out Was some those the between I we'll that that what Joe? answer did about X, that be it and also

Unknown Analyst

get Very trying I was no. is No, risk ahead. still around more guess, I clear. you just at like what Wendell, the see just that to

timing I think or in back in at you around the another think bigger tracking I was itself done. relative And talked the ahead. the about obviously, the of getting mentioned plan. call that June, time, obviously, Display, you today, risks And then risk to Optical's the one even projects

which the of think -- ahead I still rearview you are still some and the of checkmarks So in starting you that guess, risks think some to around being think about about risks those are get now are or major ahead that plan, today as navigate? mirror, you as left the to those those of

Wendell Weeks

as So more I as think less about milestones. risk and a little

deployment a So growing moment. for their -- see approaching their year-over-year rates instance, now us let's rates. stay for from their have deployment in are Opto carrier as purchases We as

see We said the beginning then our cyclical to have and relative like X overdone inventory of but So things more. we come the as there, see start would see and is those into to that, we'd deployment, right, part recovery. of what we'd to trend line, carriers that

we we'd like market. of Similarly, plan. become our more for automotive, well we innovations. more our our the Similarly, right, consumer into be nonrisk-adjusted relatively Similarly in adoption completed have in market our and the see that more innovations adopts milestones that Corning as electronics of you the that the to scale that map, solar market hit, to drive milestones in our as in to the that ICE business U.S. major see several have some opportunity mobile -- glass, both automotive in there's as GPF key of technology into stable reflected

just are to that for us an of that nonrisk-adjusted Was So still key plan. that milestones example of Joe? you the gives full hit ahead some the helpful,

Unknown Analyst

That's great. Wendell. Yes,

Operator

Our Susquehanna. next with question Hosseini Mehdi comes from the line of

Unknown Analyst

in Congrats Sebastian on is Mehdi. the quarter. This for filling

that you So little connectivity could give on if year-on-year display enterprise demand where deployments little question. my and being on my in that of on products? get ex touch XXXX And you to Is us you're strong. of will carrier question maybe bit still could a guiding be those the of Lumen? If expect growth? So increase And you growing first could a a bit bit little color color is, seeing you if well, market. as second on you're sales XX%

Edward Schlesinger

Yes. those you questions. for Thank

also indicator see ramp through about we first order what Lumen When and say that I increasing, first on right the it's would talk #X Carrier, quarter, that in year. yes, so just would book. start Lumen. say we our So broader here is as deployments go But will the carrier now we in shipping did I the than we

big XXXX. of expecting half deployments ramp starting in carrier first we're not the necessarily out right in So a here

carriers, So than much so we in increased the early not to deployments, expect other year. but Lumen,

your we certainly, your first the then strong And enterprise into expect our to your And -- was I think question, part last definitely question quarter, year-over-year continue in And segment display enterprise momentum of quarter. the the XXXX. first implies then a in to our on guide market.

say run I that makers primarily also in glass year-over-year the saw year strong in Display We're Panel The that go on year-over-year, calendar relatively to market they rate from kind IT them in size. of into is What up ran in XXXX. we space. screen expecting was at XXXX growth quarter. fourth would as

guide full of display a income, year That implies net you said, a as with guide for provided on sales we which, course, well.

So is it's back little possible Display in bit bit a that little half a lower the stronger. the front half if is

size continue really So in we glass screen year-over-year growth to would market. any be in driving display expect to the

Operator

Our of line next with Citi. from the comes question Merchant Asiya

Asiya Merchant

great how bit on if It pretty segment? that is was The talk think optical the obviously you of on a Growth I Can numbers. about Congratulations we little set strong. Two, a in really expanded quarter. relative top up last net margins the income about to a may. bit should line well. demand ramping little

So flow flow, we the and here margin drivers margins free second should more in in towards cash plan? enterprise for strongly How guys as we free your how should And about XXXX? Springboard cash think net cash plan think plan, flow how exceed margins about income sort about high-confidence momentum segment? that you performance Springboard and the growth progress on as and we the Springboard the we one, that think of think about the should carrier, than

Edward Schlesinger

Thanks, thanks nice and the comments. Asiya, for

especially to have think our we're significantly Enterprise, the to that through sales in and year, expecting I about ramped Optical, continue. thing on think is First, the

and serve impact quarter. going bit we to sales here an having higher sales to margins the XXXX, our So the we little of is some higher the costs be that able Optical into on a and have that have in expected actually fourth

go would expect I accrete continue to Optical margins So to our as we XXXX. up in into

and we year, think we continues guide our And be out true. need of cash, to out capacity, we expectation on to that. turned capital that sort was to wouldn't imply as lot our that then And started I add the of a has --

was flow free expect continue improve. cash flow up to nicely very our So free year-over-year, and cash we to

in I ramp that. little and want to build exited the I'll I the year, to you think other question on just again, that come as about add on I to a some cash AR that your inventory. But we would bit we sales. did back margins, in And so the is attribute working margin, flow thing capital

So that bodes go into XXXX. we well actually as

Operator

Wamsi Our America. next Mohan question of comes of from Bank line the with

Wamsi Mohan

benefiting heard market is your week DeepSeek. from Wendell, deployments, last the over of we've Optical from and dislocation Gen a AI lot business clearly

your view is what for curious on AI broadly to I'm particular? and DeepSeek's out So in build impact Corning, more

Wendell Weeks

Well, thanks that for Wamsi. opportunity,

revenue the Corning for importantly, on see our of negative we by announcements. plan investors, the DeepSeek of XXXX impact most don't billion set any to Springboard and from First end deliver our $X plus

So see impact. from significant Corning perspective, we don't a any

To already think innovations in has from a More in into as as appear And by. of topic are will have late I did cost of both broadly, months that X innovations they technical little innovations their the year. time, space interested of DeepSeek their ahead this been as everything just think last the I oblique community you're a more last went or in used X to actually training, the is become the for the that when time some by are for they of industry the use focus well reduce VX at to that as leaders goes right? set first

important into need to that super that the in make think model a productivity hope we is driver inference back, cost business to understand highly it sustainable more Stepping what's training all will improvement importantly, I AI dramatic and and be. we Gen

need So magnitude we type order of sort improvements. of

be are going to better. more compute of doesn't ultimate counting to realizes Does this in for many so ways, to Wamsi? you, sense better right? continue in all is of nothing need that make better here, its all And innovations this and many There there models on would to that in space us make the expect that come potential. communications is say do significant always should what so And innovations are this

Wamsi Mohan

I I does. Yes. it answer. that Yes. And for one No, Ed, could. appreciate if

rate clarification this Would again on for few one my past? had core as quick have that's of a be you years Just And XXX. static in just quick the clarification. the core rate

XXXX off low would say as going incremental coming of on you think And relative the pretty -- back CapEx last what and ticking places you're a help guidance several that think just up. years, it's your us year you investments for are where here, CapEx you secondarily, over to Can just are through about and that incremental CapEx?

Edward Schlesinger

on CapEx, quick. just Maybe Yes. real

We of always of around think we're year. bit of billion. about have thing been in a guiding our is in the $X.X depreciation $X.X that. to for below think But little most I came the is about important We billion most little a how spending. There's timing terms

level at below any not guide adding for we're that material we're next spending if capital in level, thinking. or with capacity that is that our in So really year line

technology, technological add capacity we capital We're we for thinking our or need there new really anything it. or how that's here adding little guide. in XXXX a So innovation, but about not significant always I'm

been the On stepping rate, talking been we've in about doing just we've so Display. core what back, maybe

important So go in that raise the of kind that's our able our thing forward. digits run half, in and double actually to back we we as or rate guide the most is price were

at XXXX the hedge to able and XXXX rate. were XXX We

is change period. time So at my least for expectation that no

it window. that progresses year have time on share thoughts also think as and in hedges about to XXXX back how And place we'll our We beyond XXXX. the beyond come

Operator

of the from question Roberts Mizuho. comes Our John line with next

John Ezekiel Roberts

role? to risk well underway. satellite maybe How being BEAD into of think this seems do significant programs the you go program back already reworked, about It administration more playing a the and is willing like

Wendell Weeks

one of for We in risk-adjusted degree counting our and question, become be we've accounted even revenue of how of the broadly how our until would nonrisk-adjusted Springboard John. things Within and on plan Thanks weren't our is nonrisk-adjusted speed us plan, in XXXX. for sort our used. overall to between derating the plan effective any

we how worked planning as deploy that being the of through of After fundamental strategy but do came Springboard would our was So economic one fiber with updated we basically modifications, what pieces, of feel part our some all a things thesis, nothing answer. back where John. about we better were we those versus change would process optics satellite

John Ezekiel Roberts

interest And Ed, there? sales beginning Hemlock out a one but the you will maybe break March for minority surged. And income in going then the quick on What's Hemlock quarter?

Edward Schlesinger

Yes.

John. things, X So

did joint sales, fourth have few impact lot Hemlock higher given or We that semiconductor drive A line. loaded, polysilicon strong high ventures interest higher have of that contracts minority does higher just a actually the up our fourth in minority back-end quarter. a our their are quarter the so interest income.

be, would go updates intention our we reporting. yes, to And as XXXX, into our provide segment some to

You've about business glass our out of/Hemlock. automotive solar out graduating heard us sort talk breaking and

on after move continues plans. that. And we that XX-K. insight So file year, be to our our more And past this we'll some provide

Operator

with Niknam question [Operator the Deutsche Bank. line from Matt Instructions] comes Our of next

Matthew Niknam

the quarter. on Congrats

for me. two Just

the the position, sheet prospect date? buybacks. dividend guess, talked wondering, cash new success Springboard or the growth you for administration. how forward U.S. activity maybe seen are new free tariffs ramping I'm any just then XQ ordering about was to context you the first flat I And pulled about balance the thinking is And into you dividend sort implemented of secondly, wondering, in on, of Ed, demand First by year, last or healthy And flow. I'm in quarter? talked about the newer administration the of even resuming relatively of

Edward Schlesinger

Matt. comments Thanks, I question. and the appreciate Yes. the

I'll maybe your start one. second So with

buying flow. We cash good back yes, shares. So started

as forward. do we to that continue to expect go We

any provided target. haven't specific We

the but off we start come increasing the bit to forward. little table where would very before for dividend, down think pay I go not healthy a certainly resume from it a that's I as we like is on dividend. payout even ratio we to our us see the today dividend,

to comment, anything. wants Maybe a can on add make Wendell he in tariffs, if I'll and jump

be think there. I humble I proposals to lot first know very a want foremost, out and don't we to actually admit of going that There's and yet. what's happen

things to obviously not we're we're tracking really of that, they're and react So going until to all enacted.

Corning. for A things to consider couple of

we generally foremost, are. where manufacture and our First customers

sort we on huge limited ability move supply there's to make ability price a isn't of is a limited direct impact. something to things and not little from impact. to required the the that So our is of we a have raise certainly impact. a And on import/export. that There's chain There zero, but a we tariffs us if the And certainly bit. impact It's have

do.

think I U.S. manufacturing a the for much in the lot We're secondly, manufacture U.S. in very we advanced

environmental fiber for business, Life big mobile even Optical in and business produce consumer for the have we make solar footprint Environmental our We business and our Sciences cable. We a in U.S. electronics our our in business, product

think of us I supportive side like we that. puts So U.S. we're of very on and manufacturing actually the that

So anything continue to have we it. track I we But don't would external dialogue. add now, that to we'll the think right

Wendell Weeks

you behavior. think I direct our right models, to when sales. places Some see right? in -- it's to on not do fine-tuning We'll look. It's on I start customer think some differences exactly

not end in I that's our utilization modeling really panel sort may display sort business, or of a But ready as what little for may of think a happen. we're Matt. they get close maker seeing bit stronger question,

you, Does we this for it's that to have humility got think make to bring to with Matt? broader fundamental that us sense the the question. along I

Matthew Niknam

does. does. It It

Operator

Stanley. Our the Morgan line comes with Marshall Meta next question of from

Meta Marshall

of the to order kind thought you tracking couple Lumen started for kind on from just there the of orders Maybe Materials, A out. kind get to Great. that me. of came quick you content second was then early on, patterns of Samsung like an the looked just is in through were it that question of questions maybe upgrade SXX as noted phone with the Specialty that how first, you And expecting? a kind

if kind on that trajectory of Specialty impacts wondering the just year of So the Materials?

Wendell Weeks

is have would one, we way to first in actually a the We've brand coming order because the pattern been On this product. more the the is world expected. new

install than So rather it's the past our us through to cycles, been sure full be the that able taken and desire month have product we here to be do cycles to new-to-the-world Lumen's into qual this to like able got ship. to ability to it make the testing

sort we anticipated? The more newest demand always is, important our yes, announcement. yes. To your we better our we answer able line about of So customers if It's it. the they the their is, see -- that with in think we are to product general, in And they use Corning and to second, be mean core able but strategy. we're of so your overall it's I excited question make always that our makes are, be promote happy innovations, their that when to [indiscernible]. seeing

Operator

Our Tim question of comes line Long from Barclays. next with the

Timothy Long

on I if Optical. Two-parter, could,

First, maybe a one. quick

giving a more the about center. to -- the center XX-XX piece this assuming business think be used the to enterprise lot that's I enterprise customers. data data I'm of

there? If just some give you just impact could high-level

or then you this curious, XX% down secondly, always Ed, in there's comm And maybe or really optical looking business, lot some by of cyclicality just obviously, followed some just XX% been a years. big Wendell, back, years

potential do cyclicality you're So about into you prepare solid. thinking multiple is times the far curious how XXXX for we've next does visibility last very you? I'm cyclicality sure into How visibility for over like how forward? decade? the extend And the seen going -- the

Edward Schlesinger

Maybe of business Yes. year enterprise is versus AI Tim, think good that first the of it for the and up growth Gen is majority your -- way about space. the is think data your in our I center XXXX, a to full XXXX coming about question, part of on XX%

change profile non-data data or hyperscale of So flavor of between the center. a the gives that in kind center mix you for and the

call momentum add. the in one, right? space. would right? as I'd So make think visibility We but our that I On Wendell the second a in XXXX, pretty comment, to good certainly have actually that expect continue I'll like near-term, to what We of

humble and time momentum you a that of use not though build as I so slows you cycle have quarter as much go word your and be a where that last it is your quarters. always, same I'm have periods where down, sales there strong could the over order -- are may the "humble" up several rates continuing, the can again, has even

in true true as and I space be can certainly enterprise the well. in that's think carrier, it

Wendell Weeks

as between a drivers of is, is in. big plan our think that links I a news new capital put of those behavior one The Tim. carrier right difference good of cycles it's the our the is risk-adjusted catching and That historically, nonrisk-adjusted key has is the of sort of plan great cycles. those one observation, been factors now timing are

have results It's our with significant that more just And right we line the being to driver It's now, carrier in you of of get recovery printed. don't more. just see the much a deployments. orders their

So provide together do How insight build-outs look when we more on plan. March, then capacity that with that look just guys into to we sense back try how out try to that little rolling us much our center a centers, what that a make We'll visibility more Tim? we'll to you, we'll upgrading with why our provide see? insight understand And in the takes to plan we're get reservations is nonrisk-adjusted Does and our data you will hyperscale to data not like. those help you why the be little that to like?

Timothy Long

Yes, it does.

Operator

line of the from comes Spector question next UBS. with Josh Our

James Cannon

$XX line? under that come pointing kind track still XXXX call And in to This to this against the your at TAM for on any I wanted X start on dive states, Cannon orders in of kind of process. against you've those maybe do it's point towards target think that had is I there program? and gone if if allocated James orders, have their any to have that Or I billion $X approval wanted had a prior Josh. back if time billion program, of, you it, the -- through just see have how are that? final just been Bead

Wendell Weeks

Yes.

Okay.

I takes, BEAD remember So first, as potential has have that everything some and you programs springs, And early the humility. with long degree approach how when Ed with the X of placed. talked as you'll to X humility approaching cynicism of government well as we also because introduced stages, should seems of well cynicism future about been shared that

starting XXXX. our being view size as necessarily James, anytime that the of reinforcing would it And TAM. said, it's all of to supports this earliest scale Yes, we're make not seeing so little us begin data. but I that and right? nor to I the would wouldn't now our and a it say for would view what accelerate between trickles, difference take are the our yes, numbers, notice to we enough see That

Operator

Our last Jefferies. is Notter question the George from of with line

George Notter

to ask I the about curve guess better strong the on those I looking the we've lot XXX that a low Or putting is we've that X rate has the place? company I'm X yen. lot Congrats case the the historically than if company? seen it portfolio forward relatively last seen on was a I or results. or for the the I where I hedges over guess wanted the was imagining, on at hedging spent no months. cost guess in wondering been just cost

of yen sense compare? trying could also, how a apples-to-apples that 'XX a compare, understand curious a kind you be at able then to looked end, QX And an give be if year-on-year rate take Just on to rate. us on of to you QX guidance the have give what I'd so like just us for would got the and XXX have

Edward Schlesinger

George. Thanks,

to achieve -- we rate. use is the be able always a able low. the think I keep answer XXX we hedge very of to tools short to to that like were yen JPY when cost So the we do number

currencies to go period generated and significant hedging As time. as rate, a there in then you benefit other other billion a $X.X have. long the We well we of for time amount are to time, gains we've we've out yen and over continue mechanisms know, of and the been from of can

cost, relatively statements. is all reflected So that our in low of cost generally, financial and

On increases million. $XXX take from yen, the mean change million planning the the I impact because not our we'll of your come question guide, take when we're QX to the $XXX primarily you recast and back. and price to

level get profitability. same to of the We expect to

the our of dealing the we've that's to way environment. with weaker designed So yen approach sort

we're And therefore, so intending do that. to not

understand we the do. what articulate XXXX, little when using bit, XXXX, But of XXX. sort the you were increases of to what of And XXX, and our and talk we of same to we're and kind I we And think point to we back the about profitability. of But or I price guide, increases, to proof at level have our about this in maybe you're expect at go not come price be at approach. are When above seeking. QX that QX we we'll QX that's offline trying did have there, you're a and

Ann Nicholson

morning. Thanks, us Ed. joining And this thank for you, everybody,

York the Tech XXth Before said, we'll as that we we Susquehanna And on Annual March let investor in I XX. City wanted on to February hosting an going close, know to you Conference attending New we're be event virtually be XX.

visits investor select to scheduling in cities. we'll be management Additionally, offices

disconnect starting replay on available Finally, lines. for Once morning. later a Operator, web of will site all be our again, you call. today's us. thank joining that call all concludes this the Please

Operator

today's concludes conference Thank call. This for you your participation.

disconnect. now may You

Corning (GLW) 29 Jan 252024 Q4 Earnings call transcript