Optical Communications Segment Leads Corning’s 2015 Second Quarter Performance
Corning Inc. recently announced its results for the second quarter of 2015. Core net sales were relatively flat at $2.5 billion, compared to the 2014 second quarter, while core earnings increased 7% to reach $522 million.
“We began 2015 with a clear set of priorities to drive Corning’s continued success,” said Wendell P. Weeks, chairman, CEO and president. “Our second quarter performance clearly demonstrates that we are executing to our plan. Our businesses are delivering strong results, as evidenced by the 7% year-over-year core earnings growth. And our share repurchase program has leveraged the earnings growth into 12% core EPS growth. Our first quarter acquisitions in the Optical Communications segment are paying off, especially in the growing hyperscale data centers market. We also announced an agreement to acquire a business that will enable innovation opportunities in the pharmaceutical glass packaging market. Finally, we’re continuing our commitment to return cash to shareholders through a new $2 billion share repurchase program.”
Remarking on the company’s second quarter performance, James B. Flaws, vice chairman and chief financial officer (CFO), said, “We are very pleased with our excellent business results in the quarter. Our overall performance was in line with our expectations. Without the impact of the strengthening U.S. dollar, our results would have been even stronger—with core quarterly sales, earnings, and EPS up 3%, 11% and 15%, respectively. Our Optical Communications segment had a spectacular quarter, with exceptionally strong demand for fiber-to-the-home and data center solutions. We believe our full suite of optical solutions gives us significant competitive advantages in the fastest-growing segments of these markets. And our strategic acquisitions are providing improved market access and broader customer offerings.”
Core sales of Display Technologies were $963 million, with sequential glass volume growth of a low single-digit percentage, as expected. Sequential LCD glass prices declined moderately and in line with expectations. Core earnings for the quarter were $290 million vs. $300 million in the second quarter last year.
Optical Communications sales were $800 million, a 17% increase from $686 million for the comparable period a year ago. Core earnings for the quarter were $91 million, a 44% increase from $63 million a year ago.
Environmental Technologies sales were $260 million vs. $285 million, a 9% decrease on a year-over-year basis, driven primarily by currency exchange rates. Core earnings were $46 million, in line with last year’s second quarter.
Sales in Specialty Materials were $272 million vs. $298 million, a 9% decline on a year-over-year basis, driven primarily by lower sales of advanced optics products, as anticipated. A strong mid-teens percentage growth in Corning® Gorilla® Glass volume, combined with improved efficiencies, kept core earnings at $44 million, in line with last year’s second quarter.
Additional details are available at www.corning.com.