Extract
Corning Reports Third-Quarter Results.
CORNING, N.Y. -- Corning Incorporated (NYSE: GLW) today announced third-quarter sales of $1.006 billion, and that it incurred a net loss of $2.491 billion or $1.78 per share. This net loss includes a number of noncash special items that reduced Corning's results by $2.704 billion or $1.92 per share in the quarter.
"Our third-quarter results reflect Corning's highest level of sales since the fourth quarter of 2001," James R. Houghton, chairman and chief executive officer, said. "We are disappointed with the magnitude of the noncash accounting charges we took in the quarter, but we continue to be pleased with our sequential revenue improvement and our strong gross margin. We believe that our business strategy is working, and we are well on track to meet our performance objectives for the year," he said. Corning's third-quarter net income was reduced by $2.704 billion or $1.92 per share as a result of the following: --Restructuring, impairment and other charges and credits of $1.794 billion ($1.798 billion after-tax and minority interest) primarily related to the previously announced impairment of goodwill and fixed assets in the Telecommunications segment. --A $50 million gain to reflect the decrease in the market value of Corning common stock to be contributed to settle the asbestos litigation related to Pittsburgh Corning Corporation. --A $4 million charge related to Corning's ongoing debt reduction program. --A $937 million increase in the company's income tax expense as a result of the company's previously-announced decision to provide a valuation allowance against a significant portion of its deferred tax assets. --A previously-announced $35 million impairment of equity method investments in the Telecommunications segment, included in equity earnings of associated companies, net of impairments. --A $20 million gain related to the final settlement of escrowed proceeds from the fourth-quarter 2002 sale of Corning Precision Lens, recorded as income from discontinued operation. Third-Q...See the full content of this document
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