Corning(US:GLW)2025-01-29 12:12Financial Performance - Fourth-quarter GAAP sales were $3.5 billion, with core sales reaching $3.9 billion, up 18% year over year[1]. - Full-year GAAP sales totaled $13.1 billion, with core sales increasing to $14.47 billion, a 7% year-over-year growth[9]. - Fourth-quarter gross margin was 34.2%, while core gross margin was 38.6%[9]. - Core EPS for the fourth quarter was $0.57, reflecting a 46% increase year over year[10]. - Corning's Q4 2024 net sales reached $3,501 million, a 17% increase from $2,994 million in Q4 2023[30]. - The company's gross margin improved to $1,197 million in Q4 2024, compared to $911 million in Q4 2023, reflecting a gross margin percentage increase from 30.5% to 34.2%[30]. - Operating income for Q4 2024 was $393 million, significantly up from $78 million in Q4 2023, indicating a strong operational performance[30]. - Net income attributable to Corning Incorporated was $310 million in Q4 2024, a recovery from a net loss of $40 million in Q4 2023[30]. - Basic earnings per share for Q4 2024 was $0.36, compared to a loss of $0.05 per share in Q4 2023[30]. - Core net income for the year ended December 31, 2024, was $1,699 million, up from $1,463 million in 2023, indicating a year-over-year growth of 16.1%[36]. - Basic earnings per share for Q4 2024 was $0.36, compared to a loss of $0.05 in Q4 2023, reflecting a strong recovery in profitability[35]. - Net sales for the year ended December 31, 2023, were reported at $12,588 million, with a net income attributable to Corning of $581 million, resulting in an effective tax rate of 20.6%[49]. - The company anticipates net sales for the year ended December 31, 2024, to reach $13,118 million, with a projected net income attributable to Corning of $506 million, and an effective tax rate of 27.2%[52]. - Core performance measures for the year ended December 31, 2024, are expected to be $14,469 million in net sales, with a net income of $1,699 million, resulting in a core earnings per share of $1.96[52]. Cash Flow and Investments - The company generated $1.25 billion in free cash flow for 2024, up 42% from the previous year[2]. - Net cash provided by operating activities for the year was $1,939 million, slightly down from $2,005 million in 2023[34]. - Capital expenditures for Q4 2024 were $254 million, a decrease from $279 million in Q4 2023, showing a reduction in investment spending[34]. - The company reported a net cash used in financing activities of $220 million for Q4 2024, compared to $363 million in Q4 2023, indicating improved cash management[34]. - Adjusted cash flows from operating activities for Q4 2024 were $663 million, compared to $766 million in Q4 2023, reflecting a decrease of 13.5%[57]. - Adjusted free cash flow for the year ended December 31, 2024, was $1,253 million, significantly higher than $880 million in 2023[57]. Segment Performance - The Optical Communications segment saw a 93% year-over-year growth in the Enterprise business, with fourth-quarter sales of $1.4 billion[13]. - Display Technologies expects to deliver segment net income of $900 million to $950 million in 2025, maintaining a net income margin of 25%[3]. - Management anticipates first-quarter 2025 core sales to grow approximately 10% year over year to $3.6 billion, with core EPS projected to increase by about 30%[6]. Assets and Liabilities - Total current assets increased to $7,992 million in 2024 from $7,212 million in 2023, driven by higher trade accounts receivable and inventories[32]. - Total liabilities remained stable at $16,665 million in 2024, slightly up from $16,632 million in 2023[32]. - Corning's total assets decreased to $27,735 million in 2024 from $28,500 million in 2023, primarily due to a reduction in property, plant, and equipment[32]. - Total equity as of December 31, 2024, was $11,070 million, down from $11,868 million in 2023[58]. - Total debt as of December 31, 2024, was $7,211 million, a decrease from $7,526 million in 2023[58]. Research and Development - The company reported a significant increase in research, development, and engineering expenses, totaling $1,089 million for the year 2024, compared to $1,076 million in 2023[30]. - Corning continues to focus on innovation and market expansion, leveraging its expertise in materials science to develop new products across various industries[28]. Tax and Other Financial Metrics - The effective tax rate for core performance measures was 20.1% for Q4 2024, reflecting a stable tax environment[42]. - The effective tax rate for GAAP and Core measures excludes net income attributable to non-controlling interest of approximately $67 million and $81 million, respectively, for the year ended December 31, 2023[50]. - The company incurred acquisition-related costs of $131 million for the year ended December 31, 2023, impacting net income[49]. - Restructuring, impairment, and other charges for the year ended December 31, 2023, amounted to $471 million, affecting overall profitability[49]. - The company experienced a translation gain on Japanese yen-denominated debt, netting a loss of $100 million for the year ended December 31, 2023[49]. Future Outlook - Corning plans to upgrade its 'Springboard' plan to add over $3 billion in annualized sales and achieve a 20% operating margin by the end of 2026[7]. - The upcoming investor event on March 18 will provide updates on the company's competitive advantages and growth opportunities[7]. - The company began utilizing constant-currency reporting for the Optical Communications segment effective January 1, 2024, to exclude the impact of the Mexican peso[59]. - For the year ended December 31, 2024, the company recorded $131 million in non-cash cumulative foreign currency translation losses related to the liquidation of foreign entities[61].