Corning Incorporated has announced second quarter 2022 results and provided its outlook for third-quarter and full-year 2022.
“Corning executed very well in a challenging external environment and delivered outstanding second-quarter results, with year-over-year sales and EPS growth of 7 percent and 8 percent, respectively. We also delivered USD 440 million of free cash flow in the quarter and improved profitability sequentially,” said Wendell P. Weeks, chairman and chief executive officer.
Weeks continued, “Although three of our significant demand drivers – panel maker utilization, automotive production, and smartphone sales – were down, we achieved high-single digit growth through ‘More Corning’ content opportunities and by capitalizing on secular trends in optical and solar. This resilience demonstrates the balance created by our focused and cohesive portfolio. Looking ahead, we are well positioned to drive durable, profitable long-term growth as our distinctive capabilities remain vital to solving tough technology challenges for our customers and to shaping new industries.”
Financial Highlights
- GAAP sales were USD 3.62 billion and core sales were USD 3.76 billion; core sales grew 7 percent year over year.
- Sales growth was driven primarily by Optical Communications as well as solar sales in Hemlock and Emerging Growth Businesses.
- Display Technologies sales declined 8 percent sequentially as volume declined in line with the market and lower panel maker utilization; glass price was up slightly sequentially.
- GAAP EPS was USD 0.66; core EPS was USD 0.57, an increase of 8 percent year over year.
- The primary difference between GAAP and core EPS stemmed from non-cash, mark-to-market gains associated with the company’s currency-hedging contracts.
- Core gross margin and core operating margin expanded 90 basis points and 120 basis points, respectively, from the first quarter of 2022. The improvements were primarily driven by the benefits of previously announced company-wide pricing actions.
- Free cash flow was USD 440 million for the quarter; total first-half free cash flow was USD 611 million, keeping the company on pace for another year of strong cash generation.
- For the third quarter, Corning expects USD 3.65 billion to USD 3.85 billion in core sales with core EPS of USD 0.51 to USD 0.55.
- Management expects Display Technologies volume to be down sequentially by a mid-teen percentage, in line with the market and lower panel maker utilization.
- Management now expects full-year core sales to slightly exceed USD 15 billion, growing in a range of 6 percent to 8 percent, with core EPS growing in line with sales.
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