Slide 1: Corning - Beyond Imagination
ring Beyond Imaginatior CORNING
Slide 2: Corning Incorporated Second Quarter 2006 Conference Call
Corning Incorporated Second Quarter 2006 Conference Call July 26, 2006
Slide 3: Forward Looking and Cautionary
Forward Looking and Cautionary Certain statements in this presentation constitute “forward looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on current expectations and involve certain risks and uncertaintie
Slide 4: Second Quarter 2006 Results
Second Quarter 2006 Results Amounts in millions, except per share data . *These are Non-GAAP financial measures, as they exclude special items. Please refer to the GAAP reconciliation on our web site. Sequential Yr over Yr Q2 2006 Q1 2006 % Change Q2 2005 % Change Sales $1,261 $1,262 - $1,141 11% NP
Slide 5: GAAP Reconciliation
GAAP Reconciliation Per Share Net Income $ 514 $0.32 Total EPS and net income 61 10 (11) 33 0.04 0.01 (0.01) 0.02 Special items: Asbestos settlement Provision for income taxes Retirement of debt Equity in earnings, net of impairments $ 421 $ 0.26 Earnings per share (EPS) and net income, excluding sp
Slide 6: Income Statement
Income Statement $124 9.8% $200 $128 10.2% $256 RD&E • $ • % of Sales Equity Earnings* $223 17.7% $194 15.4% SG&A • $ • % of Sales 45% 43% Gross Margin $1,262 $1,261 Sales Q1 2006 Q2 2006 $ Amounts in millions *Q2 2006 equity earnings include a $33 million gain, Q1 2006 equity earnings include a $21
Slide 7: Display Segment
$417 $344 Net Income $142 $135 Equity Earnings Upper single digit decline Up 10% Down slightly Decline less than Q1 Up 3% Down slightly Sequential Pricing SCP Sequential Volume SCP Sequential Price Up 15% Down 14% Sequential Volume $547 $461 Sales Q1 2006 Q2 2006 Display Segment $ Amounts in million
Slide 8: Seasonality of LCD monitors and LCD TV
24% 22% 25% 29% 17% 21% 25% 37% 10% 20% 30% 40% 50% Q1 Q2 Q3 Q4 Seasonality of LCD monitors and LCD TV 21% 22% 26% 31% 10% 20% 30% 40% Q1 Q2 Q3 Q4 Sets into Retail Distribution % of LCD monitor (’03-’05) 22% 21% 25% 32% 10% 20% 30% 40% Q1 Q2 Q3 Q4 Sets from Retails to Consumers % of LCD monitor (’03
Slide 9: Environmental and Life Sciences Segments
Environmental and Life Sciences Segments (5) (2) Net Income (Loss) $72 $75 Sales Life Sciences (1) 9 Net Income $155 $152 Sales Environmental Q1 2006 Q2 2006 $ Amounts in millions
Slide 10: Telecommunications Segment
Telecommunications Segment 1 40 Net Income 397 472 Total Telecommunications Segment 205 234 Fiber and Cable $192 $238 Hardware and Equipment Q1 2006 Q2 2006 $ Amounts in millions
Slide 11: Balance Sheet
Balance Sheet $616 $1,811 ($123) $664 $1,497 $299 Inventory Debt (short term and long term) Free cash flow* $2,478 $2,475 Cash and short term investments Q1 2006 Q2 2006 $ Amounts in millions *Free cash flow is a non-GAAP measure. Please refer to the GAAP reconciliation on our web site.
Slide 12: Q3 2006 Outlook
Q3 2006 Outlook $0.22 - $0.26 EPS Excluding Special Items $1.26 billion - $1.33 billion Sales
Slide 13: Q3 2006 Outlook
Q3 2006 Outlook Flat to Down Slightly Flat to Down Slightly Flat to Down Slightly Segment Sales Fiber and Cable Sales Hardware and Equipment Sales Consistent with Q2 Consistent with Q2 Up 5% - 10% Environmental Segment Sales Life Science Segment Sales Other Reportable Businesses Sales Telecommunicat
Slide 14: Q3 2006 Outlook
Q3 2006 Outlook ~ 1.59 billion Shares 15% - 20% Tax Rate Down 5% - 10% Equity Earnings ~10% of Sales RD&E ~17% of Sales SG&A Between 41% and 43% Gross Margin $0.22 - $0.26 EPS Excluding Special Items $1.26 billion - $1.33 billion Sales
Slide 15: Q&A Session
«A Session | CORNING
Slide 16: Forward Looking and Cautionary
Forward Looking and Cautionary This presentation 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 or fluctuations in global econo
Slide 17: Corning - Beyond Imagination
ring Beyond Imaginatior CORNING