Wendell Weeks Emphasizes Sustainable Performance and "Unwavering" Commitment to Innovation
CORNING, N.Y. ––Chairman and Chief Executive Officer Wendell Weeks reaffirmed the leadership team’s priorities of protecting Corning’s financial health, improving profitability, investing in the future, and “always living our values” at the company’s annual meeting Thursday morning. Addressing an audience of more than 500 shareholders, he declared, “We stick with these priorities because they work.”
Wendell reviewed the company’s record-breaking performance in 2007, but also emphasized, “Our goal as a leadership team is not peak performance during our brief time at the helm of this great company, but rather, sustainable performance.” He reminded shareholders that Corning’s objective is “another 150 years of innovation and independence.”
Acknowledging the risks inherent in Corning’s strategy of growth through global innovation, Wendell explained how Corning mitigates those risks by proactively working to provide balance and stability to the company.
Wendell reviewed the company’s progress in meetings its financial goals -- including the 2007 upgrades to Corning’s debt rating by all three major U.S. credit agencies (to the equivalent of BBB+), and the board of directors’ decision to reinstate a quarterly cash dividend at $0.05 per share.
He also pointed out the success of the broad spectrum of businesses, and that Corning achieved these record results while continuing to invest strongly in its future, allocating 10% of revenues to research and development and launching a $300 million expansion of the Sullivan Park science and technology center.
The Year Ahead
Weeks told shareholders that Corning intends to extend its track record of financial performance, cost and technology leadership, and innovation in 2008. He identified several factors necessary to deliver another year of growth and improvement for Corning, including continuing to execute the pricing strategy in display; growing the diesel products business; realizing the potential of the ClearCurve™ innovations; and growing the base business for the Epic® system. Acknowledging more economic uncertainty than in recent years, Weeks also underscored his commitment to keep the balance sheet strong, “to ensure that we can weather any economic headwinds that come our way.”
“Questions that May Be on Your Minds”
Turning his attention to “questions that may be on your minds,” Wendell began by addressing concerns about future growth in the LCD market. He told the audience “we’re still in the early days of this business,” and noted that LCD has emerged as the winning TV technology over plasma and rear projection. He also observed that the LCD TV market has grown faster than Corning has predicted and that the company’s market forecast model may be too conservative. Weeks noted several trends that could lead to increased demand, including a faster-than-expected technology substitution of LCD over traditional cathode ray technology and an increase in the number of TVs per household.
He concluded by telling shareholders, “ We have a solid operating plan, a strong leadership team, and 26,000 exceptionally talented and dedicated employees around the world. So we are confident in our future.
“You can count on our commitment to the long-term success of this company.” Company News in November
The November 14 issue of The LEADER had two Corning Incorporated stories of interest to all company retirees.
The first is about expansion at Sullivan Park that could mean as many as 300 new jobs. To see it, click on the following link:
http://www.the-leader.com/articles/2007/11/14/news/local01.txt
The second is about the company's positive business outlook for the fourth quarter. To see it, click on the following link:
http://www.the-leader.com/articles/2007/11/14/news/local02.txt
Chairman's Role Transitions from Jamie to Wendell
CORNING, N.Y. – Chief Executive Officer Wendell Weeks stepped into the additional role of Corning’s chairman on April 26, completing the leadership transition the company began two years ago. Wendell was welcomed into his new position by more than 700 people at Thursday’s Annual Meeting of Shareholders. Those same shareholders – and Wendell -- warmly thanked outgoing chairman Jamie Houghton for his five years of leadership during the most difficult chapter in the company’s history.
In his remarks, Wendell reminded the audience that Jamie came out of retirement in 2002 to guide the company back to prosperity, having first retired in 1996.
Although Jamie was fully engaged in leadership roles with the Metropolitan Museum of Art and Harvard University, he answered the call when Corning needed his guidance, Wendell said. “During those dark days, he was willing to risk the reputation he had built to come back as CEO and put his name on the line – betting that we could rescue the company that he loves.
“Jamie put his reputation at risk for us…he put the institution first … and we did succeed. We all owe him a debt of gratitude.”
Wendell told an anecdote that President and Chief Operating Officer Peter Volanakis had first shared at a Management Committee dinner in January. Referencing the clear blue color that has always been part the company’s logos through the years, “Peter said that Jamie’s 45 years of service with Corning, and his commitment to the institution’s Values, represents the long blue line of leaders and individuals who have made this company what it is today.”
“That long blue line is always moving to meet the challenges of the moment, yet is also always true to our traditions and Values. That long blue line has bent, but never broken…wavered, but always held. The people change, but the institution and the Values endure.”
Under Jamie’s leadership, he noted, “The blue line is stronger than ever before…and with that strength we are up to the task and the challenges ahead…So this morning, we thank Jamie for his contributions and his leadership as we look to the future, and another 150 years of innovation and independence.”
In his own remarks, Jamie reflected on his return in the midst of the telecom crash of 2002 – and how the newly formed Management Committee formulated a realistic plan based on protecting the company’s financial health, returning to profitability, investing in the future, and living our Values.
“The path was clear, but not easy. It was tough on our people and on our communities. But we kept the beacon of hope alive because we knew it was far, far too soon for this remarkable company to even think of calling it quits.”
Jamie also voiced his strong confidence in Wendell and the other leaders and employees of the company. “I want to thank them for what they’ve accomplished in the last five years. From the dark days of 2002, we have come out into the sunlight – and the long-term forecast remains very bright indeed.”
“And so, I turn the tiller over to Wendell and his team. I have the utmost confidence in them as they continue to lead the company. Very little in their new roles will actually be new to them. They have earned the confidence of our people around the world, and they are passionate stewards of our treasured Values.”
Jamie Houghton to Step Down as Corning Chairman
 CORNING, N.Y. -- Effective April 26, James R. Houghton will step down as chairman of Corning's Board of Directors, and Chief Executive Officer Wendell Weeks will take on the additional role as the company's next chairman. Jamie made the announcement Wednesday evening to Corning's top 200 leaders gathered for a meeting of the Corporate Management Group (CMG).
Jamie will formally hand over the chairman's role to Wendell at the Annual Shareholders Meeting, and Wendell will retain his role as CEO. At the same time, Peter Volanakis will become president of the company, in addition to his role as Chief Operating Officer.
Jamie followed a familiar pattern in announcing his decision, he told CMG members at their dinner at the Corning Museum of Glass. The CMG was the first to learn of his initial retirement in 1996, after he had served as chairman and CEO since 1983. The CMG was also first to learn in 2005 that -- three years after having come out of retirement to head
the company again -- he was transitioning his CEO role to Wendell Weeks. And the leadership changes in April "will complete the transition that started in 2005," he told them.
In his brief remarks, Jamie warmly congratulated CMG members for their role in the company's turnaround over recent years. "You represent the type of people this company draws," he said. "People are attracted to Corning because we're willing to take big risks...we value the innovative and the daring."
Even during the grim times of 2002, Jamie said, "I could feel nothing but confidence in our future." And he lauded the CMG members for their leadership as well. "You could look to the victory ahead -- and what a victory it's been," he added, referring to the record-breaking financial results the company announced this week.
Jamie also led the group in congratulatory applause to Wendell and Peter for their additional new leadership roles, and recognized both of them -- along with other members of the Management Committee -- for leading the company's recovery and putting today's strategy into place. "You have a superior leader in Wendell -- the best CEO we've ever had," he added.
Tributes to Jamie
Following Jamie's announcement, Wendell took to the podium for a toast to honor the retiring chairman. Wendell recalled how Jamie, at the request of Corning's board, came out of retirement in 2002. "During those dark days, he put his reputation at risk. He put the institution first. And we did succeed!" In a news release issued Wednesday evening, James J. O'Connor - the board's lead director - also paid tribute to Jamie's leadership.
"Jamie Houghton has served this company admirably for more than three decades and all of the employees, shareholders and directors owe him a great deal of gratitude," he said. "He returned from six years of retirement to lead Corning out of one of the darkest periods of financial uncertainty in the company's history.
"As we look forward, the board is highly confident that Wendell, Peter and the entire Management Committee have the correct strategy in place to lead this company forward."
EDITOR'S NOTE: To see The LEADER's article which includes Q&As, click on the link below:
http://www.the-leader.com/articles/2007/01/28/news/local01.txt.thearticles/2007/01/28/news/local01.txt
Governor Visits Corning to Sign Clean-air Legislation
November 02, 2006
 CORNING, N.Y. - New York Governor George Pataki came to Corning headquarters on Thursday to sign legislation that will require the use of ultra-low-sulfur diesel fuels and emissions control technologies in heavy-duty diesel vehicles that are owned, operated or leased by the state. The governor called the legislation "another important step" in reducing harmful pollutants from diesel exhaust. "To achieve these reductions, we will partner with innovative New York companies like Corning Incorporated and others who are developing new and improved products and technologies that will control pollution," he said. Under this new law, all on- and off-road heavy-duty diesel vehicles - those weighing 8,500 pounds or more - that are owned, operated or leased by a New York state agency or public authority, will be required to be powered by ultra-low-sulfur diesel fuel.
In addition, a number of these vehicles will also be required to use the Best Available Retrofit Technology (BART) - referring to emissions-control devices like those Corning manufactures, including particulate filters -- to reduce the emissions of pollutants. The use of ultra-low-sulfur fuel will be required once this new law becomes effective in February. BART will be phased-in beginning in 2008, and all vehicles subject to this provision will be required to utilize this technology by Dec. 31, 2010.
 Corning Chief Operating Officer Peter Volanakis hosted the event, which attracted a number of other state governmental officials, business leaders, and local media. "We applaud the efforts of Governor Pataki and other state officials in working together to bring the Diesel Emission Reduction Act for New York State to a reality," Pete said. "This legislation is fundamentally sound because it is very beneficial to the region, the economy, and most importantly, clean air."
 Tom Hinman, senior vice president and general manager of Corning Diesel Technologies, noted that Corning's combined investment in diesel - including research and development, and the capital investment to build the Corning-area diesel factory - has topped $700 million. The state has been helpful in supporting the investment, he said. "The expansion of the Empire Zone to include the new facility has given us tax incentives that improved the business case for the investment."
Tom also lauded the new legislation's inclusion of diesel retrofitrequirements. "The Environmental Protection Agency estimates that for every dollar spent on diesel retrofits, $12 in economic and health benefits will be generated. Few government programs have such an impressive return."
Governmental and Corning officials also noted the role that U.S. Rep. Randy Kuhl played in ensuring that the majority of the cost of retrofitting state vehicles would be covered by federal funding.
Wendell Reflects on His First Year as CEO
"We've got terrific people working all over the company"
CORNING, N.Y. – When Wendell Weeks addressed Corning shareholders at the Annual Meeting in April – one year after he moved into the role of Chief Executive Officer – he reflected briefly on last year's leadership transition. "We told you to expect an evolution – not a revolution, with a lot of consistency from me, and from the rest of the Management Committee," he told the crowd. "And I think you'd agree – that's just what you got."
With a focus on consistent operating priorities, the company delivered strong performance in 2005. A strong balance sheet, investment-grade credit ratings, record-breaking operating cash flow, solid growth opportunities in key markets like LCD, FTTP and Diesel, and a promising "next wave of growth" portfolio are all part of Corning's story today.
We've all read about the company's business results, but what are Wendell's personal thoughts after his first year as Chief Executive Officer? We asked him to reflect on the subject.
Looking back on your first year as CEO, have things gone as well as you hoped they would?
Things have gone well, yes. I feel like I've got the best of all worlds right now. We're executing our annual operating priorities and plan, and in the last year we confirmed that our near-term growth opportunities are real. We've got an experienced and seasoned Management Committee. Jamie continues as Chairman. And, we've got terrific people working all over the company - people dedicated to our continued success. So we are really blessed right now.
You've been working with many of the other senior leaders for a long time, and you've come through the downturn together. How has that solidified your ability to work together as a team?
We've been through tough times together, and we've come back from the biggest challenge this company has faced in 150 years. We've learned a lot about ourselves, and each other, and as a result we respect and trust each other. We're all personally committed to the long-term success of this company. I'd say that's about as good a foundation for teamwork as you could find.
You sometimes refer to yourself as an "ex-operations guy." Has it been difficult being removed from the day-to-day details?
Sometimes. I think it's natural to miss some aspects of prior roles, and those who know me know I love operations. What's more important, however, is that I have total confidence in Peter Volanakis and his team of general managers. They are doing an outstanding job of running operations.
So what has taken up more of your time?
I'm focusing a lot more of my time and attention on technology and innovation -- with Joe Miller and his team. Corning has a successful history of innovation. Over time, we've created one to two significant new businesses per decade. Our goal now is to double that rate of innovation and new business creation. Joe and his team are dedicated to achieving this goal … and I'm excited about the potential of our "create the next wave" portfolio.
So with everything going well, what are you worried about ?
Well, those who know me will tell you that I'm always worried. We all know that bad things can, and do, happen to the best of people and the best of companies. So what are we doing to make sure we're prepared?
First, we will provide stability by protecting the financial health of the company. Last year we ended the year with more cash than debt for the first time in over 25 years, and we plan to maintain this negative net debt position.
Second, we are focused on building a bigger, more balanced company. Our growth today is being driven by Display, but we must use this time well to improve operations across the company. That's why we are focused on Performance - achieving and sustaining cost leadership in all our businesses and staff functions. Our success in Display makes performance in our other businesses and in our staff functions more important, not less important. And, we're balancing our innovation portfolio, working on a wide range of new ideas in different technologies and potential markets.
Finally, we're committed to living our Values - all seven, all the time, all around the world. Our Values provide the solid foundation for our success - in both good times, and bad.
We can't know what the future will bring, and we can't eliminate uncertainly or volatility, but by executing against our strategy and annual operating plan we'll be doing our part to ensure the continued success of Corning for may years to come.
CIRG Newsletter
Since establishing this web site, the CIRG Newsletter that was once issued quarterly has been reduced to a once-a-year issue published in the spring. It includes listings of all new retirees for the previous year, the 50- and 75-year milestone retirees, and a listing of retirees who passed on over the past year. It also includes a special message from our company CEO, Wendell Weeks, listings of the CIRG and other retirees’ programs, events and activities in and around the corporate “homestead.” Reports of selected Coffee Session speakers during the past year are included as space permits.
The 2004 and 2005 issues were sent by first-class mail so they would be forwarded to those who left forwarding instructions with the USPS. If you received a forwarded newsletter or if you did not receive one at all, it’s suggested you contact the Corning Benefits Network at 800-858-3875 to assure they have your current mailing address.
The Spring 2007 issue will again be sent by bulk mail to cut costs. Since the USPS does not forward bulk mail, it is up to each retiree to assure the Benefits Network has their correct current mailing address so they can get the Spring 2007 CIRG Newsletter.
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