Corning Inc. (GLW, Financial) filed Quarterly Report for the period ended 2010-06-30.
Corning Inc. has a market cap of $28.34 billion; its shares were traded at around $18.16 with a P/E ratio of 10.3 and P/S ratio of 5.2. The dividend yield of Corning Inc. stocks is 1.1%. Corning Inc. had an annual average earning growth of 4.9% over the past 5 years.GLW is in the portfolios of Mark Hillman of Hillman Capital Management, Lee Ainslie of Maverick Capital, Ronald Muhlenkamp of Muhlenkamp Fund, Bill Frels of Mairs & Power Inc. , John Hussman of Hussman Economtrics Advisors, Inc., PRIMECAP Management, David Williams of Columbia Value and Restructuring Fund, John Buckingham of Al Frank Asset Management, Inc., Stanley Druckenmiller of Duquesne Capital Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, David Dreman of Dreman Value Management, Steven Cohen of SAC Capital Advisors, Dodge & Cox, Chuck Royce of Royce& Associates, George Soros of Soros Fund Management LLC.
In the six months ended June 30, 2010, we reported net income of $1,729 million or $1.09 per share compared to net income of $625 million or $0.40 per share for the same period last year. This improvement was due primarily to higher net income in our Display and Environmental Technologies segments, the absence of restructuring charges that totaled $165 million in the first half of last year, higher equity in earnings from Dow Corning, and a change in our effective tax rate resulting from a decision to repatriate current year earnings from certain foreign subsidiaries. Net income in the first half of 2010 was favorably impacted by $117 million from movements in foreign exchange rates, when compared to the first half of 2009.
Capital spending totaled $309 million and $491 million for the six months ended June 30, 2010 and 2009, respectively. Spending in the first half of 2010 was driven primarily by projects in our Display Technologies segment.
In July 2010, we announced a multi-year investment plan for additional manufacturing capacity that will benefit a number of our segments. The plan includes $800 million for spending associated with a new LCD glass substrate facility in the People s Republic of China to meet expected growing demand for Corning s LCD glass. We expect spending for this facility to begin in September of this year and production to begin in 2012. Investments will include construction projects in other regions to expand capacity for Eagle XGÒ LCD glass substrates and will benefit our Specialty Materials segment by providing capacity for increased demand of Corning s Gorillaâ glass. The plan also includes spending in the Environmental Technologies segment to expand its existing automotive substrate facility in Shanghai and to establish a Life Sciences manufacturing and distribution facility in the Yangtze River Delta. These facilities are expected to be operational by 2012. As a result of this plan, we now expect our 2010 capital spending to be about $1.2 billion, which is $200 million higher than our original estimate. Approximately $450 million to $550 million will be directed toward our Display Technologies segment in 2010.
In the first quarter of 2009, we recorded a charge of $165 million for a corporate-wide restructuring plan to reduce our global workforce. The charge included costs for severance, special termination benefits, outplacement services, and the impact of a $30 million curtailment loss for postretirement benefits. Total cash expenditures associated with these actions are expected to be approximately $105 million with the majority of spending completed by the end of 2010. We estimated annualized savings from these actions to be about $195 million, which have been reflected largely in cost of sales and selling, general, and administrative expenses.
In the three months ended June 30, 2010 and 2009, we recorded an increase to our asbestos settlement liability of $5 million. In the six months ended June 30, 2010, we recorded a $47 million decrease to our asbestos settlement liability compared to an increase of $9 million for the same period last year. The net decrease in the asbestos settlement liability in the first half of 2010 was due to a change in the terms of the proposed settlement which reduced the amount of cash expected to be contributed to the settlement. For additional information on this matter, refer to Note 3 (Commitments and Contingencies) to the consolidated financial statements and Part II – Other Information, Item 1. Legal Proceedings.
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Corning Inc. has a market cap of $28.34 billion; its shares were traded at around $18.16 with a P/E ratio of 10.3 and P/S ratio of 5.2. The dividend yield of Corning Inc. stocks is 1.1%. Corning Inc. had an annual average earning growth of 4.9% over the past 5 years.GLW is in the portfolios of Mark Hillman of Hillman Capital Management, Lee Ainslie of Maverick Capital, Ronald Muhlenkamp of Muhlenkamp Fund, Bill Frels of Mairs & Power Inc. , John Hussman of Hussman Economtrics Advisors, Inc., PRIMECAP Management, David Williams of Columbia Value and Restructuring Fund, John Buckingham of Al Frank Asset Management, Inc., Stanley Druckenmiller of Duquesne Capital Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, David Dreman of Dreman Value Management, Steven Cohen of SAC Capital Advisors, Dodge & Cox, Chuck Royce of Royce& Associates, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
In the second quarter of 2010, we generated net income of $913 million or $0.58 per share, compared to net income of $611 million or $0.39 per share for the same period in 2009. When compared to the same period last year, the increase in net income in the second quarter of 2010 was due largely to higher net income in our Display Technologies segment due to higher volume, along with higher equity in earnings from Dow Corning driven by strength in Dow Corning s silicone products and improved results at Hemlock Semiconductor. Net income in the second quarter of 2010 was also favorably impacted by $64 million from movements in foreign exchange rates, when compared to the same period last year.In the six months ended June 30, 2010, we reported net income of $1,729 million or $1.09 per share compared to net income of $625 million or $0.40 per share for the same period last year. This improvement was due primarily to higher net income in our Display and Environmental Technologies segments, the absence of restructuring charges that totaled $165 million in the first half of last year, higher equity in earnings from Dow Corning, and a change in our effective tax rate resulting from a decision to repatriate current year earnings from certain foreign subsidiaries. Net income in the first half of 2010 was favorably impacted by $117 million from movements in foreign exchange rates, when compared to the first half of 2009.
Capital spending totaled $309 million and $491 million for the six months ended June 30, 2010 and 2009, respectively. Spending in the first half of 2010 was driven primarily by projects in our Display Technologies segment.
In July 2010, we announced a multi-year investment plan for additional manufacturing capacity that will benefit a number of our segments. The plan includes $800 million for spending associated with a new LCD glass substrate facility in the People s Republic of China to meet expected growing demand for Corning s LCD glass. We expect spending for this facility to begin in September of this year and production to begin in 2012. Investments will include construction projects in other regions to expand capacity for Eagle XGÒ LCD glass substrates and will benefit our Specialty Materials segment by providing capacity for increased demand of Corning s Gorillaâ glass. The plan also includes spending in the Environmental Technologies segment to expand its existing automotive substrate facility in Shanghai and to establish a Life Sciences manufacturing and distribution facility in the Yangtze River Delta. These facilities are expected to be operational by 2012. As a result of this plan, we now expect our 2010 capital spending to be about $1.2 billion, which is $200 million higher than our original estimate. Approximately $450 million to $550 million will be directed toward our Display Technologies segment in 2010.
In the first quarter of 2009, we recorded a charge of $165 million for a corporate-wide restructuring plan to reduce our global workforce. The charge included costs for severance, special termination benefits, outplacement services, and the impact of a $30 million curtailment loss for postretirement benefits. Total cash expenditures associated with these actions are expected to be approximately $105 million with the majority of spending completed by the end of 2010. We estimated annualized savings from these actions to be about $195 million, which have been reflected largely in cost of sales and selling, general, and administrative expenses.
In the three months ended June 30, 2010 and 2009, we recorded an increase to our asbestos settlement liability of $5 million. In the six months ended June 30, 2010, we recorded a $47 million decrease to our asbestos settlement liability compared to an increase of $9 million for the same period last year. The net decrease in the asbestos settlement liability in the first half of 2010 was due to a change in the terms of the proposed settlement which reduced the amount of cash expected to be contributed to the settlement. For additional information on this matter, refer to Note 3 (Commitments and Contingencies) to the consolidated financial statements and Part II – Other Information, Item 1. Legal Proceedings.
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