Corning, Inc. (GLW) Q3 2022 Earnings Call Transcript

Corning, Inc. (NYSE:GLW) Q3 2022 Earnings Conference Call October 25, 2022 8:30 AM ET

Company Participants

Ann Nicholson - VP, IR

Wendell Weeks - Chairman & CEO

Edward Schlesinger - EVP & CFO

Conference Call Participants

Mehdi Hosseini - Susquehanna

Steven Fox - Fox Advisors

Martin Yang - Oppenheimer

Wamsi Mohan - Bank of America Merrill Lynch

Tim Long - Barclays Bank

Joshua Spector - UBS

Shannon Cross - Crédit Suisse

Samik Chatterjee - JPMorgan Chase & Co.

Matthew Niknam - Deutsche Bank

Meta Marshall - Morgan Stanley

Operator

Welcome to the Corning Inc. Third Quarter 2022 Earnings Call. [Operator Instructions].

It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations.

Ann Nicholson

Thank you, and good morning. Welcome to Corning's Q3 2022 Earnings Call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; Ed Schlesinger, Executive Vice President and Chief Financial Officer; and Jeff Evenson, Executive Vice President and Chief Strategy Officer.

I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports. You should also note that we'll be discussing our consolidated results using core performance measures, unless we specifically indicate our comments related to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business.

For the third quarter, the primary difference between GAAP and core EPS was from primarily noncash charges associated with capacity optimization and noncash mark-to-market adjustments associated with the company's currency hedging contracts.

This increased core earnings in the third quarter by $234 million. To be clear, these charges and mark-to-market accounting have no impact on our cash flow. Reconciliation of core results to the comparable GAAP value can be found in the Investor Relations section of our website at corning.com. You may also access Corning results on our website with downloadable financials in the Interactive Analyst Center. Supporting slides are being shown live. They're also available on our website for downloading.

And now I'll turn the call over to Wendell.

Wendell Weeks

Thank you, Ann, and good morning, everyone. Today, we reported solid third quarter results that demonstrate strong execution. We continue to operate each of our business as well and our focus on leadership and distinctive capabilities allow us to capitalize on important secular trends and drive our More Corning approach. Sales were $3.7 billion, up slightly versus a strong third quarter last year, and EPS was $0.51. We were able to offset a sales decline in display technologies with growth in optical communications and solar. While we believe that display panel maker production bottomed in September, we would like to see additional positive evidence before guiding a significant recovery in glass demand.