Corning Reports Strong Third-Quarter Earnings

Corning Reports Strong Third-Quarter Earnings

October 25, 2007

    CORNING, N.Y., Oct. 25 /Xinhua-PRNewswire/ -- Corning
Incorporated (NYSE: GLW) on Oct 24, 2007 announced results
for the third quarter of 2007.

    (Logo: http://www.xprn.com/xprn/sa/200708141205-min.jpg
)

    Third-Quarter Highlights

    -- Sales reached $1.55 billion, up 21% year-over-year.

    -- Earnings per share (both GAAP and non-GAAP) were
$0.38, better
       than the company's guidance of $0.34 to $0.37 and
significantly
       better than last year. 
    -- Display Technologies' glass volume increased 15% and
Samsung
       Corning Precision's volume increased 14% compared to
quarter
       two. Price declines in the quarter were in line with
previous
       quarters. 
    -- Sequentially, telecommunications sales increased 8%
(10%*
       excluding the impact of the divestiture of the
company's
       submarine cabling business in the second quarter). 

    Fourth-Quarter Outlook Highlights

    -- Sales are expected in the range of $1.50 billion to
$1.55
       billion. 
    -- EPS is expected in the range of $0.36 to $0.38
before special
       items.* 
    -- Display volume is expected to be up 2% to 5%
sequentially, and
       consistent with the overall glass market growth. 
    -- Telecommunications sales are expected to decline
about 10%
       sequentially, in line with normal seasonal patterns.


    Wendell P. Weeks, chairman and chief executive officer,
said, "Corning delivered a robust third quarter with
excellent performance in our Display Technologies and
Telecommunications segments. As we expected,
telecommunications sales improved in the quarter."

    Quarter Three Financial Comparisons

                           Q3 2007  Q2 2007  % Change  Q3
2006  % Change
    Net Sales in millions   $1,553   $1,418    +10%    
$1,282    +21%
    Net Income in millions   $ 617    $ 489    +26%      $
438    +41%
    GAAP EPS                $ 0.38   $ 0.30    +26%     $
0.27    +41%
    Non-GAAPEPS*            $ 0.38   $ 0.34    +12%     $
0.28    +36%

    *These are non-GAAP financial measures. The
reconciliation between GAAP and non-GAAP measures is
provided in the tables following this news release, as well
as on the company's investor relations website.

    Overview of Business Segment Results

    Third-quarter sales for Corning's Display Technologies
segment were $705 million, a 16% sequential increase, and a
39% increase over the third quarter 2006. The display
segment results were also positively impacted by a
favorable U.S.-dollar-to-Japanese-yen exchange rate in the
quarter.

    Telecommunications segment sales in the third quarter
were $472 million, an 8% sequential increase and a 4%
increase over the third quarter 2006. Excluding the impact
of the divestiture of the submarine cabling business, sales
were up 10%* over the second quarter and 13%* over the third
quarter 2006. The strong third-quarter performance was
driven by growth throughout the segment, including
increased demand for fiber-to-the-premises (FTTP) products
and private network projects. During the third quarter, the
company began shipments to a new European FTTP customer. 

    Environmental Technologies segment sales in the third
quarter were $198 million, a 4% sequential increase and a
29% increase over the third quarter 2006. Corning's Life
Sciences segment had sales of $78 million, remaining even
with last quarter, and 15% higher than a year ago.

    Corning's equity earnings from Dow Corning were $81
million in the third quarter, compared to $88 million in
the second quarter and $78 million a year ago.
Third-quarter equity earnings include a $4 million
nonrecurring tax charge.

    The company's third-quarter results included two
special items: a credit of $16 million related to the
Pittsburgh Corning Corporation settlement and $18 million
of restructuring charges in equity earnings from Samsung
Corning Company, Ltd. Samsung Corning is Corning's
50-percent owned equity venture in Korea which manufactures
glass panels and funnels for cathode ray tubes for
conventional televisions and computer monitors.

    Fourth-Quarter 2007 Outlook

    "The overall display market appears healthy
heading into the fourth quarter. Retail market indicators
continue to point toward a strong consumer holiday buying
season for electronic goods such as LCD televisions, laptop
computers and flat screen monitors. We currently see no
evidence of credit concerns in the U.S. impacting
consumers' purchasing decisions," James B. Flaws, vice
chairman and chief financial officer, said.

    Business Segment Highlights

    -- Sequential LCD volume in both the company's wholly
owned
       business and at Samsung Corning Precision is
expected to
       increase in the range of 2% to 5%. Corning's wholly
owned
       business is on track to increase volume 37% to 38%
for the
       full year. To meet this level of demand, the company
anticipates
       running its operations at full capacity in the
fourth quarter.
       Sequential price declines are again expected to be
in line with
       previous quarters. Corning is assuming a
U.S.-dollar-to-Japanese-yen
       exchange rate of 116 for quarter four.
    -- Corning's Telecommunications segment sales are
expected to
       increase about 5% (about 15%* excluding the impact
of
       divestitures) versus the fourth quarter 2006, and
are on track
       to grow about 3% (about 10%* excluding the impact of
divestitures)
       this year. 
    -- Environmental Technologies segment sales are
expected to decline
       about 10% sequentially, and increase about 15%
versus the fourth
       quarter 2006. 
    -- Sales for the Life Sciences segment are expected to
decline
       slightly on a sequential basis and be even with the
fourth
       quarter 2006. 

    "Compared to last year, we expect our
fourth-quarter sales to be up about 10% to 13% and our EPS,
before special items, to increase 16% to 22%.* These
fourth-quarter results will bring our full-year sales
growth to about 12% and our full-year EPS growth, before
special items, to at least 21%* over 2006, bringing us
another outstanding year of performance for Corning,"
Flaws said.

    Looking forward to 2008, Flaws said that Corning's
current view is that the LCD glass market will expand by at
least 400 million square feet, driven primarily by the
growth of LCD television demand. This square-footage growth
is similar to that experienced in both 2006 and 2007.
Corning intends to continue its current pricing strategy in
2008.

    Third-Quarter Conference Call Information

    The company will host a third-quarter conference call
on October 24 at 8:30 a.m. EDT. To access the call, dial
[phone] approximately 10-15 minutes prior to the
start of the call. The password is QUARTER THREE. The
leader is SOFIO. To listen to a live audio webcast of the
call, go to Corning's Web site at
http://www.corning.com/investor_relations and follow the
instructions. A replay of the call will begin at
approximately 10:30 a.m. EDT, and will run through 5 p.m.
EST, Wednesday, November 7. To listen, dial [phone].
No pass code is required. The audio webcast will be archived
for one year following the call.

    Presentation of Information in this News Release

    Non-GAAP financial measures are indicated with an
ASTERISK and not in accordance with, or an alternative to,
GAAP. Corning's non-GAAP net income and EPS measures
exclude restructuring, impairment and other charges and
adjustments to prior estimates for such charges.
Additionally, the company's non-GAAP measures exclude
adjustments to asbestos settlement reserves required by
movements in Corning's common stock price, gains and losses
arising from debt retirements, charges or credits arising
from adjustments to the valuation allowance against
deferred tax assets, equity method charges resulting from
impairments of equity method investments or restructuring,
impairment or other charges taken by equity method
companies, and gains from discontinued operations. The
company believes presenting non-GAAP net income and EPS
measures is helpful to analyze financial performance
without the impact of unusual items that may obscure trends
in the company's underlying performance. These non-GAAP
measures are reconciled on the company's Web site at
http://www.corning.com/investor_relations and accompanies
this news release.

    About Corning Incorporated

    Corning Incorporated ( http://www.corning.com ) is the
world leader in specialty glass and ceramics. Drawing on
more than 150 years of materials science and process
engineering knowledge, Corning creates and makes keystone
components that enable high-technology systems for consumer
electronics, mobile emissions control, telecommunications
and life sciences. Our products include glass substrates
for LCD televisions, computer monitors and laptops; ceramic
substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug
discovery; and other advanced optics and specialty glass
solutions for a number of industries including
semiconductor, aerospace, defense, astronomy and
metrology.

    Forward-Looking and Cautionary Statements

    This press release contains forward-looking statements
that involve a variety of business risks and other
uncertainties that could cause actual results to differ
materially. These risks and uncertainties include the
possibility of changes in global economic and political
conditions; currency fluctuations; product demand and
industry capacity; competition; manufacturing efficiencies;
cost reductions; availability of critical components and
materials; new product commercialization; changes in the
mix of sales between premium and non-premium products; new
plant start-up costs; possible disruption in commercial
activities due to terrorist activity, armed conflict,
political instability or major health concerns; adequacy of
insurance; equity company activities; acquisition and
divestiture activities; the level of excess or obsolete
inventory; the rate of technology change; the ability to
enforce patents; product and components performance issues;
stock price fluctuations; and adverse litigation or
regulatory developments. Additional risk factors are
identified in Corning's filings with the Securities and
Exchange Commission. Forward-looking statements speak only
as of the day that they are made, and Corning undertakes no
obligation to update them in light of new information or
future events.


    For more information, please contact:

    Media Relations Contact:
     Daniel F. Collins
     Tel:   [phone]
     Email: [e-mail]
 
    Investor Relations Contact:
     Kenneth C. Sofio
     Tel:   [phone]
     Email: [e-mail]