Corning Incorporated (NYSE: GLW) is an American manufacturer of glass, ceramics and related materials, primarily for industrial and scientific applications. The company was known as Corning Glass Works until 1989, when it changed its name to Corning Incorporated. Corning sold its consumer line of Corelle tableware and Pyrex cookware[when?], but still holds an ~8% interest. Corning allocates a significant amount of revenue (~10%) towards research and development. As of 2008, Corning has five major business sectors: Display Technologies, Environmental Technologies, Life Sciences, Telecommunications and Specialty Materials. Corning is also involved in several joint equity ventures. These include Dow Corning, as well as two companies, Quest Diagnostics and Covance, that were spun off from Corning.
Corning Incorporated (Corning), incorporated in December 1936, is a technology-based company. The Company operates five business segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences. Corning manufactures and processes products at approximately 60 plants in 13 countries. In October 2010, the Company acquired Plaslab S.A.S. On October 1, 2010, the Company acquired 49% interest in Quebec Silicon Limited Partnership (Quebec Silicon LP), which is a silicon metal manufacturing company with operations in Canada. In March 2011, the Company acquired all outstanding shares from the shareholders of MobileAccess.
Display Technologies Segment
Corning’s Display Technologies segment manufactures glass substrates for matrix liquid crystal displays (LCDs), that are used primarily in notebook computers, flat panel desktop monitors, and LCD televisions. Corning’s facilities in Kentucky, Japan, Taiwan, and China and those of Samsung Corning Precision Materials Co., Ltd. (Samsung Corning Precision), in which it owns 50%, in Korea develop, manufacture and supply glass substrates. Samsung Corning Precision sells LCD glass to panel manufacturers in Korea, while panel manufacturers located in Japan, Taiwan, Singapore and China and other LCD-producing areas of the world are supplied by Corning. Glass substrates are available from Corning in sizes up to Generation 10 (2,850mm x 3,050 millimeter). In 2010, the Company introduced EAGLE XG Slim glass, a new line of slim glass substrates, which enables lighter-weight portable devices and thinner televisions and monitors. During the year ended December 31, 2010, the Display Technologies segment represented 45% of Corning’s sales.
The Company competes with Asahi Glass, Nippon Electric Glass and Avan Strate, Inc., formerly NH Techno.
Telecommunications Segment
The Telecommunications segment produces optical fiber and cable, and hardware and equipment products for the worldwide telecommunications industry. Corning offers a range of optical fiber technology products and enhancements for a range of applications, including premises, fiber-to-the-home access, metropolitan, long-haul and submarine networks. Corning makes and sells InfiniCor fibers for local area networks, data centers and central offices; SMF-28e+ single-mode optical fiber that provides additional transmission wavelengths in metropolitan and access networks; SMF-28 ULL fiber, and LEAF optical fiber for long-haul, regional and metropolitan networks. It also offers ClearCurve ultra-bendable single-mode fiber for use in multiple dwelling units and fiber-to-the-home applications; ClearCurve ultra-bendable multimode fiber for data centers and other enterprise networks, and Vascade submarine optical fibers for use in submarine networks. Corning has two optical fiber manufacturing facilities in North Carolina and China.
A portion of Corning’s optical fiber is sold to subsidiaries, such as Corning Cable Systems LLC, Beijing CCS Optical Fiber Cable Co., Ltd., Chengdu CCS Optical Fiber Cable Co., Ltd. and Corning Cable Systems Polska Sp. Z o.o. Its hardware and equipment products include cable assemblies, fiber optic hardware, fiber optic connectors, optical components and couplers, closures and pedestals, splice and test equipment and other accessories for optical connectivity. For copper connectivity, Corning’s products include subscriber demarcation, connection and protection devices, xDSL (different variations of digital subscriber lines) solutions and outside plant enclosures. In addition, Corning offers products for the cable television industry, including coaxial connectors and associated tools. During 2010, the Telecommunications segment represented 26% of Corning’s sales.
The Company competes with Furukawa Electric/OFS, Fujikura Ltd., Sumitomo Electric, Prysmian Cables & Systems, Draka Comteq, 3M Company (3M), Tyco Electronics, Furukawa OFS and CommScope.
Environmental Technologies Segment
Corning’s Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile and stationary applications around the world. Corning develops ceramic substrate and filter products for gasoline and diesel applications. The Company manufactures substrate and filter products in New York, Virginia, China, Germany and South Africa. Corning sells its ceramic substrate and filter products worldwide to manufacturers of emission control systems who then sell to automotive and diesel vehicle or engine manufacturers. During 2010, the Environmental Technologies segment represented 12% of Corning’s sales.
The Company competes with NGK, Denso and Ibiden.
Specialty Materials Segment
The Specialty Materials segment manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals. This segment operates in markets, including display optics and components, semiconductor optics components, aerospace and defense, astronomy, ophthalmic products, telecommunications components, and protective cover glass for portable display devices and televisions. Semiconductor optics manufactured by Corning includes optical material products, optical-based metrology instruments and optical assemblies for applications in the semiconductor industry. Corning’s semiconductor optics products are manufactured in New York. Its protective cover glass, the Corning and Gorilla glass, is a cover glass for display devices, such as notebook personal computers (PCs), televisions and mobile phones. Corning Gorilla glass is manufactured in Kentucky, Japan and Taiwan. Other specialty glass products include glass lens and window components and assemblies. During 2010, the Specialty Materials segment represented approximately 9% of Corning’s sales.
The Company competes with Schott, Shin-Etsu Quartz Products, Asahi Fine Glass, Carl Zeiss, Nikon, NEG, Transitions Optical, Oerlikon, Hoya and Heraeus.
Life Sciences Segment
The Company is a developer, manufacturer and a global supplier of scientific laboratory products. Life Sciences laboratory products include general labware and equipment, as well as tools for cell culture and bioprocess, genomics and proteomics, and high-throughput screening. Corning manufactures these products in Maine, New York, New Jersey, California, Utah, Mexico, France, Poland and China. The products are marketed worldwide, primarily through distributors, to pharmaceutical and biotechnology companies, academic institutions, hospitals, government entities and other research facilities. Corning developes and produces technologies, which includes the Corning HYPERFlask Cell Culture Vessel for cell yields, and surfaces, which includes the Corning CellBIND Surface and the Corning Osteo-Assay surface. During 2010, the Life Sciences segment represented approximately 8% of Corning’s sales.
The Company competes with Greiner, Becton Dickinson, Kimble-Chase and Duran.
All Other
The Company’s Other products include development projects and new product lines, corporate investments, Samsung Corning Precision’s non-LCD business, and Corning’s Eurokera and Keraglass equity affiliates with Saint Gobain Vitrage S.A. of France, which manufacture smooth cooktop glass/ceramic products in France, China, and South Carolina. Development projects and new product lines include the use of various technologies for new products, such as flow reactors, thin-film photovoltaics and for thin, strong glass applications. The Epic system, which is a screening platform-based on optical biosensor technology, offers drug developers to evaluate new drug targets through both biochemical and cell-based drug discovery applications. During 2010, All Other products represented less than 1% of Corning’s sales.
OVERALL
Beta: 1.36
Market Cap (Mil.): $32,355.76
Shares Outstanding (Mil.): 1,569.91
Annual Dividend: 0.20
Yield (%): 0.97
FINANCIALS
GLW Industry Sector
P/E (TTM): 9.36 11.04 17.03
EPS (TTM): 23.34 -- --
ROI: 15.46 4.78 3.24
ROE: 19.06 5.95 5.80
Name Age Since Current Position
Weeks, Wendell 51 2010 Chairman of the Board, President, Chief Executive Officer
Flaws, James 62 2002 Vice Chairman of the Board, Chief Financial Officer
Gregg, Kirk 51 2002 Executive Vice President, Chief Administrative Officer
Miller, Joseph 69 2002 Executive Vice President, Chief Technology Officer
Schneider, Pamela 56 2010 Executive Vice President, Operations Chief of Staff
McRae, Lawrence 52 2010 Executive Vice President - Strategy and Corporate Development
Tripeny, R. Tony 51 2009 Senior Vice President, Principal Accounting Officer, Corporate Controller
Hatton, Vincent 60 2007 Senior Vice President, General Counsel
Smithburg, William 72 1987 Independent Director
Brown, John 71 1996 Independent Director
Gund, Gordon 71 1990 Independent Director
Ruding, H. Onno 72 1995 Independent Director
Rieman, Deborah 61 1999 Independent Director
Tookes, Hansel 63 2001 Independent Director
Cummings, Robert 61 2006 Independent Director
Landgraf, Kurt 64 2007 Independent Director
Wrighton, Mark 61 2009 Independent Director
Canning, John 66 2010 Independent Director
Tilton, Glenn 63 2010 Independent Director
COMPANY ADDRESS
Corning Inc
One Riverfront Plaza
Corning NY 14831
Corning Incorporated (Corning), incorporated in December 1936, is a technology-based company. The Company operates five business segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences. Corning manufactures and processes products at approximately 60 plants in 13 countries. In October 2010, the Company acquired Plaslab S.A.S. On October 1, 2010, the Company acquired 49% interest in Quebec Silicon Limited Partnership (Quebec Silicon LP), which is a silicon metal manufacturing company with operations in Canada. In March 2011, the Company acquired all outstanding shares from the shareholders of MobileAccess.
Display Technologies Segment
Corning’s Display Technologies segment manufactures glass substrates for matrix liquid crystal displays (LCDs), that are used primarily in notebook computers, flat panel desktop monitors, and LCD televisions. Corning’s facilities in Kentucky, Japan, Taiwan, and China and those of Samsung Corning Precision Materials Co., Ltd. (Samsung Corning Precision), in which it owns 50%, in Korea develop, manufacture and supply glass substrates. Samsung Corning Precision sells LCD glass to panel manufacturers in Korea, while panel manufacturers located in Japan, Taiwan, Singapore and China and other LCD-producing areas of the world are supplied by Corning. Glass substrates are available from Corning in sizes up to Generation 10 (2,850mm x 3,050 millimeter). In 2010, the Company introduced EAGLE XG Slim glass, a new line of slim glass substrates, which enables lighter-weight portable devices and thinner televisions and monitors. During the year ended December 31, 2010, the Display Technologies segment represented 45% of Corning’s sales.
The Company competes with Asahi Glass, Nippon Electric Glass and Avan Strate, Inc., formerly NH Techno.
Telecommunications Segment
The Telecommunications segment produces optical fiber and cable, and hardware and equipment products for the worldwide telecommunications industry. Corning offers a range of optical fiber technology products and enhancements for a range of applications, including premises, fiber-to-the-home access, metropolitan, long-haul and submarine networks. Corning makes and sells InfiniCor fibers for local area networks, data centers and central offices; SMF-28e+ single-mode optical fiber that provides additional transmission wavelengths in metropolitan and access networks; SMF-28 ULL fiber, and LEAF optical fiber for long-haul, regional and metropolitan networks. It also offers ClearCurve ultra-bendable single-mode fiber for use in multiple dwelling units and fiber-to-the-home applications; ClearCurve ultra-bendable multimode fiber for data centers and other enterprise networks, and Vascade submarine optical fibers for use in submarine networks. Corning has two optical fiber manufacturing facilities in North Carolina and China.
A portion of Corning’s optical fiber is sold to subsidiaries, such as Corning Cable Systems LLC, Beijing CCS Optical Fiber Cable Co., Ltd., Chengdu CCS Optical Fiber Cable Co., Ltd. and Corning Cable Systems Polska Sp. Z o.o. Its hardware and equipment products include cable assemblies, fiber optic hardware, fiber optic connectors, optical components and couplers, closures and pedestals, splice and test equipment and other accessories for optical connectivity. For copper connectivity, Corning’s products include subscriber demarcation, connection and protection devices, xDSL (different variations of digital subscriber lines) solutions and outside plant enclosures. In addition, Corning offers products for the cable television industry, including coaxial connectors and associated tools. During 2010, the Telecommunications segment represented 26% of Corning’s sales.
The Company competes with Furukawa Electric/OFS, Fujikura Ltd., Sumitomo Electric, Prysmian Cables & Systems, Draka Comteq, 3M Company (3M), Tyco Electronics, Furukawa OFS and CommScope.
Environmental Technologies Segment
Corning’s Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile and stationary applications around the world. Corning develops ceramic substrate and filter products for gasoline and diesel applications. The Company manufactures substrate and filter products in New York, Virginia, China, Germany and South Africa. Corning sells its ceramic substrate and filter products worldwide to manufacturers of emission control systems who then sell to automotive and diesel vehicle or engine manufacturers. During 2010, the Environmental Technologies segment represented 12% of Corning’s sales.
The Company competes with NGK, Denso and Ibiden.
Specialty Materials Segment
The Specialty Materials segment manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals. This segment operates in markets, including display optics and components, semiconductor optics components, aerospace and defense, astronomy, ophthalmic products, telecommunications components, and protective cover glass for portable display devices and televisions. Semiconductor optics manufactured by Corning includes optical material products, optical-based metrology instruments and optical assemblies for applications in the semiconductor industry. Corning’s semiconductor optics products are manufactured in New York. Its protective cover glass, the Corning and Gorilla glass, is a cover glass for display devices, such as notebook personal computers (PCs), televisions and mobile phones. Corning Gorilla glass is manufactured in Kentucky, Japan and Taiwan. Other specialty glass products include glass lens and window components and assemblies. During 2010, the Specialty Materials segment represented approximately 9% of Corning’s sales.
The Company competes with Schott, Shin-Etsu Quartz Products, Asahi Fine Glass, Carl Zeiss, Nikon, NEG, Transitions Optical, Oerlikon, Hoya and Heraeus.
Life Sciences Segment
The Company is a developer, manufacturer and a global supplier of scientific laboratory products. Life Sciences laboratory products include general labware and equipment, as well as tools for cell culture and bioprocess, genomics and proteomics, and high-throughput screening. Corning manufactures these products in Maine, New York, New Jersey, California, Utah, Mexico, France, Poland and China. The products are marketed worldwide, primarily through distributors, to pharmaceutical and biotechnology companies, academic institutions, hospitals, government entities and other research facilities. Corning developes and produces technologies, which includes the Corning HYPERFlask Cell Culture Vessel for cell yields, and surfaces, which includes the Corning CellBIND Surface and the Corning Osteo-Assay surface. During 2010, the Life Sciences segment represented approximately 8% of Corning’s sales.
The Company competes with Greiner, Becton Dickinson, Kimble-Chase and Duran.
All Other
The Company’s Other products include development projects and new product lines, corporate investments, Samsung Corning Precision’s non-LCD business, and Corning’s Eurokera and Keraglass equity affiliates with Saint Gobain Vitrage S.A. of France, which manufacture smooth cooktop glass/ceramic products in France, China, and South Carolina. Development projects and new product lines include the use of various technologies for new products, such as flow reactors, thin-film photovoltaics and for thin, strong glass applications. The Epic system, which is a screening platform-based on optical biosensor technology, offers drug developers to evaluate new drug targets through both biochemical and cell-based drug discovery applications. During 2010, All Other products represented less than 1% of Corning’s sales.
OVERALL
Beta: 1.36
Market Cap (Mil.): $32,355.76
Shares Outstanding (Mil.): 1,569.91
Annual Dividend: 0.20
Yield (%): 0.97
FINANCIALS
GLW Industry Sector
P/E (TTM): 9.36 11.04 17.03
EPS (TTM): 23.34 -- --
ROI: 15.46 4.78 3.24
ROE: 19.06 5.95 5.80
Name Age Since Current Position
Weeks, Wendell 51 2010 Chairman of the Board, President, Chief Executive Officer
Flaws, James 62 2002 Vice Chairman of the Board, Chief Financial Officer
Gregg, Kirk 51 2002 Executive Vice President, Chief Administrative Officer
Miller, Joseph 69 2002 Executive Vice President, Chief Technology Officer
Schneider, Pamela 56 2010 Executive Vice President, Operations Chief of Staff
McRae, Lawrence 52 2010 Executive Vice President - Strategy and Corporate Development
Tripeny, R. Tony 51 2009 Senior Vice President, Principal Accounting Officer, Corporate Controller
Hatton, Vincent 60 2007 Senior Vice President, General Counsel
Smithburg, William 72 1987 Independent Director
Brown, John 71 1996 Independent Director
Gund, Gordon 71 1990 Independent Director
Ruding, H. Onno 72 1995 Independent Director
Rieman, Deborah 61 1999 Independent Director
Tookes, Hansel 63 2001 Independent Director
Cummings, Robert 61 2006 Independent Director
Landgraf, Kurt 64 2007 Independent Director
Wrighton, Mark 61 2009 Independent Director
Canning, John 66 2010 Independent Director
Tilton, Glenn 63 2010 Independent Director
COMPANY ADDRESS
Corning Inc
One Riverfront Plaza
Corning NY 14831
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