CORNING INC /NY

Previous wording

We expect core net sales of approximately $3.85 billion for the second quarter of 2025.

Current wording

We expect core net sales of approximately $4.2 billion for the third quarter of 2025.

Previous wording

For the three months ended March 31, 2025, net sales increased $477 million, or 16% when compared to the same period in 2024. This was primarily driven by an increase in sales for optical communication products of $425 million, display products of $72 million and specialty materials products of $45 million partially offset by a decrease in sales for automotive products of $37 million.

Current wording

For the three months ended June 30, 2025, net sales increased $611 million, or 19% when compared to the same period in 2024. This was primarily driven by an increase in sales for optical communication products of $453 million, specialty materials products of $45 million, polycrystalline silicon products of $24 million and display products of $21 million.

Previous wording

For the three months ended March 31, 2025, cost of sales increased $256 million, or 13%, when compared to the same period in 2024 primarily driven by the increase in net sales, as discussed above, and gross margin increased $221 million, or 22%, and increased as a percentage of sales by 2 percentage points when compared to the same period in 2024 driven by the continued impact of actions taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels.

Current wording

For the three months ended June 30, 2025, cost of sales increased $168 million, or 7%, when compared to the same period in 2024, primarily driven by the increase in net sales as discussed above. Gross margin increased $443 million, or 47%, and increased as a percentage of sales by 7 percentage points when compared to the same period in 2024 driven by the impact of actions taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels.

Previous wording

For the three months ended March 31, 2025, selling, general and administrative expenses increased $20 million, or 4%, and slightly decreased as a percentage of sales when compared to the same period in 2024.

Current wording

For the three and six months ended June 30, 2025, selling, general and administrative expenses increased $44 million and $64 million, respectively, when compared to the same periods in 2024, primarily due to the increase in net sales, as discussed above.

Previous wording

For the three months ended March 31, 2025, research, development and engineering expenses increased 5% and slightly decreased as a percentage of sales when compared to the same period in 2024.

Current wording

For the three and six months ended June 30, 2025, research, development and engineering expenses increased $14 million and $26 million, respectively and slightly decreased as a percentage of sales when compared to the same periods in 2024.

Previous wording

Included in translated earnings contract (loss) gain, net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro and its impact on net income.

Current wording

Included in translated earnings contract gain, net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro and its impact on net income.

Previous wording

The following table provides detailed information on the impact of translated earnings contract (loss) gain, net (in millions):

Current wording

The following table provides detailed information on the impact of translated earnings contract gain, net (in millions):

Previous wording

(1)For the three months ended March 31, 2025 and 2024, amount includes non-cash pre-tax realized losses of $40 million and $31 million, respectively, related to the premiums of expired option contracts.

Current wording

(1)For the three and six months ended June 30, 2025, amount includes non-cash pre-tax realized losses of $68 million and $108 million, respectively, and for the three and six months ended June 30, 2024, amount includes non-cash pre-tax realized losses of $26 million and $57 million, respectively, related to the premiums of expired option contracts.

Previous wording

The impact to income from realized activity for the three months ended March 31, 2025 was primarily driven by realized gains from our Japanese-yen and Mexican peso denominated hedges, partially offset by realized losses from our South Korean won denominated hedges. The impact to income for the three months ended March 31, 2024 was primarily driven by realized gains from our Japanese-yen denominated hedges, partially offset by realized losses from our South Korean won and Chinese yuan denominated hedges.

Current wording

The impact to income from realized activity for the three months ended June 30, 2025 was primarily driven by realized losses from our South Korean won-denominated hedges, partially offset by realized gains from our Mexican peso-denominated hedges. The impact to income from realized activity for the six months ended June 30, 2025 was primarily driven by realized gains from our Mexican peso and Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won-denominated hedges. The impact to income for the three and six months ended June 30, 2024 was primarily driven by realized gains from our Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won-denominated hedges.

Previous wording

The impact to income from unrealized activity for the three months ended March 31, 2025 was primarily driven by unrealized losses from our Japanese-yen and euro denominated hedges, partially offset by unrealized gains from our South Korean won-denominated hedges. The impact to income for the three months ended March 31, 2024 was primarily driven by unrealized losses from our South Korean won-denominated hedges, partially offset by unrealized gains from our Japanese yen-denominated hedges.

Current wording

The impact to income from unrealized activity for the three and six months ended June 30, 2025 was primarily driven by unrealized gains from our South Korean won and new Taiwan dollar-denominated hedges, partially offset by unrealized losses from our Japanese yen and euro-denominated hedges. The impact to income for the three months ended June 30, 2024 was primarily driven by unrealized losses from our South Korean won-denominated hedges. The impact to income for the six months ended June 30, 2024 was primarily driven by unrealized losses from our South Korean won and new Taiwan dollar-denominated hedges, partially offset by unrealized gains from our Japanese yen-denominated hedges.

Previous wording

For the three months ended March 31, 2025, income before income taxes decreased $56 million when compared to the same period in 2024, primarily driven by losses in our translated earnings contracts, as discussed above, partially offset by an increase in gross margin, as discussed above.

Current wording

For the three and six months ended June 30, 2025, income before income taxes increased $412 million and $356 million, respectively, when compared to the same periods in 2024, primarily driven increases in gross margin, as discussed above, and gains on our translated earnings contracts, as discussed above.

Previous wording

For the three months ended March 31, 2025, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to certain pre-tax losses with no corresponding expected tax benefit, partially offset by foreign derived intangible income and non-taxable items.

Current wording

For the three and six months ended June 30, 2025, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to foreign derived intangible income, adjustments to share-based compensation and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Previous wording

For the three months ended March 31, 2025, the effective tax rate differed when compared to the same period in 2024 primarily due to changes in share based compensation, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Current wording

For the three and six months ended June 30, 2025, the effective tax rate differed when compared to the same periods in 2024 primarily due to foreign derived intangible income, adjustments to share-based compensation and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.

Previous wording

The increase in segment net sales was primarily driven by continued strong demand for our Generative AI products in our Enterprise business and datacenter interconnect products in our Carrier business.

Current wording

The increase in segment net sales for both the three and six month periods was primarily due to continued growth in our Enterprise business driven by strong demand for our Generative AI products, and in our Carrier business, driven by demand for datacenter interconnect products and fiber-to-the-home products.

Previous wording

The increase in segment net sales was due to higher sales volume, attributable to increased panel maker utilization, as well as pricing actions taken in the second half of 2024. Higher pricing was offset by the impact from resetting our core rate from 107 to 120 Japanese yen to USD. The comparative period results were not recast and is presented at the 107 Japanese yen to USD core rate.

Current wording

The decrease in segment net sales for both the three and six month periods was due to lower sales volume, attributable to reduced panel maker utilization in the second quarter of 2025, partially offset by pricing actions taken in the second half of 2024. The pricing actions offset the majority of the impact from resetting our core rate from 107 to 120 Japanese yen to USD. The comparative period results were not recast and are presented at the 107 Japanese yen to USD core rate.

Previous wording

The increase in segment net sales was due to continued strong demand for premium glass for mobile devices.

Current wording

The increase in segment net sales for both the three and six month periods was due to continued strong demand for premium glass for mobile devices.

Previous wording

The decrease in segment net sales was primarily due to continued softness in light-duty and heavy-duty markets, particularly in Europe.

Current wording

The decrease in segment net sales for both the three and six month periods was primarily due to continued softness in light-duty and heavy-duty markets, particularly in Europe and North America.

Previous wording

Segment net sales remained consistent with the comparative period.

Current wording

Segment net sales remained consistent with the comparative periods.

Previous wording

The increase in segment net income was primarily driven by strong incremental profit on higher sales volume, as outlined above.

Current wording

The increase in segment net income for both the three and six month periods was primarily driven by strong incremental profit on higher sales volume, as outlined above.

Previous wording

The decrease in segment net income was primarily driven by the decrease in sales, as outlined above.

Current wording

The decrease in segment net income for the three month period was primarily driven by the decrease in sales, as outlined above. The increase in segment net income for the six month period was primarily driven by improved operating performance during the first quarter of 2025 as compared to the same period in prior year.

Previous wording

The increase in segment net income was primarily driven by strong incremental profit on higher volumes.

Current wording

The increase in segment net income for both the three and six month periods was primarily driven by increased sales, as outlined above, and strong incremental profit on higher volumes.

Previous wording

Segment net income remained flat when compared to the same period in 2024, driven by consistent sales as outlined above.

Current wording

Segment net income remained flat when compared to the same periods in 2024, driven by consistent sales, as outlined above.

Previous wording

Items that are excluded from certain core performance calculations include: the impact of translating the Japanese yen-denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.

Current wording

Items that are excluded from certain core performance calculations include: the impact of translating the foreign denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.

Previous wording

In addition, because a significant portion of our revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. Therefore, management utilizes constant-currency reporting for the Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display segment. The constant-currency rates established for our core performance measures are internally derived long-term management estimates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts and foreign-denominated debt. For details of the rates used, please see the footnotes to the “Reconciliation of Non-GAAP Measures” section. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuations, analyze underlying trends in the businesses and establish operational goals and forecasts.

Current wording

In addition, because a significant portion of our revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. Therefore, management utilizes constant-currency reporting for the Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display segment. The constant-currency rates established for our core performance measures are long-term management-determined rates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts and foreign-denominated debt. For details of the rates used, refer to the footnotes to the “Reconciliation of Non-GAAP Measures” section. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuations, analyze underlying trends in the businesses and establish operational goals and forecasts.

Previous wording

For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, please see “Reconciliation of Non-GAAP Measures.” With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis.

Current wording

For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, refer to “Reconciliation of Non-GAAP Measures.” With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis.

Previous wording

For the three months ended March 31, 2025, we generated core net sales of $3.7 billion compared to $3.3 billion for the same period in 2024. The increase in core net sales of $421 million was primarily driven by increased segment sales of $425 million in Optical Communications, $47 million in Specialty Materials and $33 million in Display, partially offset by decreased segment sales of $51 million in Automotive and $31 million in Hemlock and Emerging Growth Businesses. Net sales by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Current wording

For the six months ended June 30, 2025, we generated core net sales of $7.7 billion compared to $6.9 billion for the same period in 2024. The increase in core net sales of $862 million was primarily driven by increased segment sales of $878 million in Optical Communications and $91 million in Specialty Materials, partially offset by decreased segment sales of $83 million in Display and $70 million in Automotive. Net sales by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Previous wording

For the three months ended March 31, 2025, we generated core net income of $467 million compared to $330 million for the same period in 2024. The increase of $137 million was primarily due to higher segment net income of $101 million in Optical Communications and $42 million in Display. Net income by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Current wording

For the three months ended June 30, 2025, we generated core net income of $523 million compared to $407 million for the same period in 2024. The increase of $116 million was primarily due to higher segment net income of $104 million in Optical Communications. Net income by reportable segment is discussed in detail in the “Segment Analysis” section of our MD&A.

Previous wording

Core earnings per share increased for the three months ended March 31, 2025 to $0.54 per share, primarily as a result of the changes in core net income, outlined above.

Current wording

Core earnings per share increased for the three months ended June 30, 2025 to $0.60 per share, primarily as a result of the changes in core net income, outlined above.

Previous wording

(1)Constant-currency adjustment: As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. The Company utilizes constant-currency reporting for Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts. For the three months ended March 31, 2025 and 2024, the constant-currency adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate.

Current wording

(1)Constant-currency adjustment: As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. The Company utilizes constant-currency reporting for Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts. For the three and six months ended June 30, 2025 and 2024, the constant-currency adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate.

Previous wording

The constant-currency rates established for our core performance measures are internally derived long-term management estimates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts and foreign-denominated debt. Effective January 1, 2025, management updated the constant-currency rates and the updated rates were applied prospectively beginning with reporting periods in 2025. Comparative results were not recast and are reported based on the 2024 rates.

Current wording

The constant-currency rates established for our core performance measures are long-term management-determined rates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts and foreign-denominated debt. Effective January 1, 2025, management updated the constant-currency rates and the updated rates were applied prospectively beginning with reporting periods in 2025. Comparative results were not recast and are reported based on the 2024 rates.

Previous wording

(2)Translation of Japanese yen-denominated debt, net: Amount reflects the gain or loss on the translation of our yen-denominated debt to U.S. dollars, net of any gain or loss on our cross currency swap contracts.

Current wording

(2)Translation of foreign denominated debt, net: Amount reflects the gain or loss on the translation of our yen-denominated and euro-denominated debt to U.S. dollars, net of gains or losses on related hedging instruments.

Previous wording

(9)Loss on investments: Amount reflects the loss recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment.

Current wording

(9)(Gain) loss on investments: Amount reflects the gain or loss recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment.

Previous wording

(11)Loss on sale of business: Amount reflects the loss recognized for the sale of a business, recorded in other (expense) income, net in the consolidated statements of income.

Current wording

(12)Loss on sale of business: Amount reflects the loss recognized for the sale of a business, recorded in other (expense) income, net in the consolidated statements of income.

Previous wording

We participate in accounts receivable management programs, including factoring arrangements to sell certain accounts receivable to third-party financial institutions or accelerate collections through our customer’s supply chain financing arrangements. Sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. By utilizing these types of programs, we accelerated the collection of $403 million in accounts receivable during the three months ended March 31, 2025, which would have been collected during the normal course of business in the following quarter.

Current wording

We participate in accounts receivable management programs, including factoring arrangements to sell certain accounts receivable to third-party financial institutions or accelerate collections through our customer’s supply chain financing arrangements. Sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. By utilizing these types of programs, we accelerated the collection of $403 million and $399 million in accounts receivable during the three months ended March 31, 2025 and June 30, 2025, respectively, which would have been collected during the normal course of business in the following quarter.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2025 slightly improved when compared to the same period in the prior year.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2025 improved when compared to the same period in the prior year, primarily driven by higher net income.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 improved by $19 million when compared to the same period last year, primarily driven by lower capital expenditures of $44 million, partially offset by $38 million less realized gains on our translated earnings contracts.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 increased by $128 million when compared to the same period last year, primarily driven by higher capital expenditures of $22 million and less realized gains on our translated earnings contracts of $61 million.

Previous wording

As of March 31, 2025, we had $1.4 billion of cash and cash equivalents. Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of March 31, 2025, approximately 52% of the consolidated cash and cash equivalents were held outside the U.S.

Current wording

As of June 30, 2025, we had $1.5 billion of cash and cash equivalents. Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of June 30, 2025, approximately 46% of the consolidated cash and cash equivalents were held outside the U.S.

Previous wording

Our $1.5 billion Revolving Credit Agreement is available to support obligations under the commercial paper program and for general corporate purposes, if needed. As of March 31, 2025, there were no amounts outstanding under this facility.

Current wording

We have a line of credit facility available to support obligations under the commercial paper program and for general corporate purposes, if needed. On July 28, 2025, the Company entered into the New Credit Agreement, which replaces the Company's $1.5 billion Existing Credit Agreement dated June 6, 2022. The New Credit Agreement provides a committed $1.5 billion in unsecured multi-currency line of credit and expires July 28, 2030. As of June 30, 2025, there were no outstanding amounts under the Existing Credit Agreement or the New Credit Agreement.

Previous wording

Our Revolving Credit Agreement includes affirmative and negative covenants with which we must comply, including a leverage (debt to capital ratio) financial covenant. The required leverage ratio is a maximum of 60%. As of March 31, 2025, our leverage using this measure was approximately 39%. As of March 31, 2025, we were in compliance with all such covenants.

Current wording

Our Existing Credit Agreement and New Credit Agreement include affirmative and negative covenants with which we must comply, including a leverage (debt to capital ratio) financial covenant. The required leverage ratio is a maximum of 60%. As of June 30, 2025, our leverage using this measure was approximately 39%. As of June 30, 2025, we were in compliance with all such covenants.

Previous wording

We have access to certain Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and general corporate purposes. As of March 31, 2025, borrowings totaled $269 million and these facilities had variable interest rates ranging from 2.8% to 3.4% and maturities ranging from 2025 to 2032. As of March 31, 2025, Corning had 0.2 billion Chinese yuan of unused capacity, equivalent to approximately $32 million.

Current wording

We have access to certain Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and general corporate purposes. As of June 30, 2025, borrowings totaled $394 million and these facilities had variable interest rates ranging from 2.2% to 3.4% and maturities ranging from 2025 to 2032. As of June 30, 2025, the amount of unused capacity was not material.