Corning(GLW) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, net sales increased by $477 million, or 16$425 million[93]. - Gross margin for the same period increased by $221 million, or 22$3.85 billion for the second quarter of 2025[90]. - Segment net sales for Optical Communications reached $1.355 billion, a 46$930 million in 2024[109]. - The Automotive segment experienced a decrease in net sales of $51 million, or 10$163 million, or 37%, totaling $599 million for the three months ended March 31, 2025[116]. - Core net sales for Q1 2025 reached$3.679 billion, a 13% increase from $3.258 billion in Q1 2024[129]. - Core net income for Q1 2025 was$467 million, up 42% from $330 million in Q1 2024[131]. - Core earnings per share increased to$0.54 in Q1 2025, compared to $0.38 in Q1 2024, reflecting a 42$425 million in Optical Communications and $47 million in Specialty Materials[130]. Tax and Income - The effective tax rate for the three months ended March 31, 2025, was 22.9$56 million, primarily driven by losses in translated earnings contracts[102]. Research and Development - Research, development, and engineering expenses increased by 5% but slightly decreased as a percentage of net sales compared to the same period in 2024[98]. Liquidity and Capital Management - The company maintains strong liquidity, with sufficient cash flow to meet operational obligations and fund future acquisitions[143]. - Major funding sources for 2025 include operating cash flow, existing cash balances, and potential debt issuances[143]. - As of March 31, 2025, working capital increased to $3,121 million from$3,073 million as of December 31, 2024, with a current ratio of 1.7:1[145]. - Net cash provided by operating activities for the three months ended March 31, 2025, was $151 million, an increase from$96 million in the same period last year[148]. - The company accelerated the collection of $403 million in accounts receivable during the three months ended March 31, 2025, through accounts receivable management programs[147]. - Capital expenditures for the three months ended March 31, 2025, were$208 million, with an expectation of approximately $1.3 billion for the full year[167]. - As of March 31, 2025, the company had$1,359 million in cash and cash equivalents, with approximately 52% held outside the U.S.[152]. - The total debt to total capital ratio remained stable at 39% as of March 31, 2025[145]. - The company has $1.5 billion available under its Revolving Credit Agreement, with no amounts outstanding as of March 31, 2025[155]. Shareholder Returns - The Board declared a quarterly dividend of$0.28 per share of common stock, payable on June 27, 2025[166]. - The company anticipates making cash contributions of $10 million to international pension plans during 2025[170]. - The company has approximately$3.0 billion remaining under its $5.0 billion share repurchase authorization as of March 31, 2025[165]. Foreign Operations and Risk Management - The company operates in multiple foreign countries, leading to exposure to foreign currency exchange rate fluctuations[177]. - Constant-currency reporting is utilized to mitigate the impact of currency fluctuations, particularly from the Japanese yen, on sales and net income[127]. - The company's risk management strategies regarding market risk are detailed in the 2024 Form 10-K[177]. - The company updated its constant-currency rates effective January 1, 2025, to better align with long-term management estimates[141]. Other - Core performance measures are used to analyze financial performance without the impact of items driven by general economic conditions[135].