Corning Incorporated Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Corning Incorporated Q1 2021 Earnings Summary

Overview: Corning reported a strong Q1 2021 with sales of $3.3 billion (up 29% YoY from Q1 2020 and up 14% vs. Q1 2019) and core EPS of $0.44 (up 125% YoY). All five segments delivered double-digit sales and net income growth YoY. Free cash flow reached $372 million (up $691 million vs. Q1 2020). Operating margin was 17.1% (up 730 bps YoY). The company highlighted robust demand across businesses, supply chain challenges impacting costs by ~$50 million, and strategic initiatives like "more Corning" content and innovation.

Financial Highlights (vs. Q1 2020 unless noted)

  • Sales: $3.3B (+29% YoY); strong sequential momentum from H2 2020
  • Core EPS: $0.44 (+125% YoY); GAAP EPS impacted by $308M non-cash hedge gains (no cash flow effect)
  • Operating Income: +125% YoY
  • Free Cash Flow: $372M (+$691M YoY; 39% of 2020 total)
  • Operating Margin: 17.1% (+730 bps YoY); impacted by elevated freight/logistics costs

Segment Performance

  • Display Technologies: Sales $863M (+50% YoY, +3% seq.); Net income $213M (+40% YoY). Volume +low-single digits seq.; favorable pricing environment (most positive Q1 in >10 years). Glass market expected +mid-single digits in 2021.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Welcome to the Corning Incorporated Quarter 1 2021 Earnings Call. [Operator Instructions] It is my pleasure to introduce you to Ann Nicholson, Vice President of Investor Relations. Ann Nicholson: Thank you, and good morning, everybody, and welcome to our first quarter 2021 earnings call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; Tony Tripeny, Executive Vice President and Chief Financial Officer; and Jeff Evenson, Executive Vice President and Chief Strategy Officer. I'd like to remind you that today's remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports. You should also note that we will be discussing our consolidated results using core performance measures, unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business. For the first quarter, the largest difference between our GAAP and core results stemmed from noncash mark-to-market gains associated with the company's currency hedging contracts. With respect to mark-to-market adjustments, GAAP accounting requires earnings translation hedge contracts and foreign debt settling in future periods to be mark-to-market and recorded at current value at the

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional