Corning Posts Strong 2009 Financial Performance
January 26, 2010

Chairman and CEO Wendell Weeks told employees: "Thanks to everyone's hard work, Corning pulled through the worst economic recession since World War II."

CORNING, N.Y. – Corning exceeded its financial goals for 2009, turning in $5.4 billion in sales and healthy free cash flow. “I believe Corning is a financially stronger and better-positioned company now than a year ago,” Chairman and CEO Wendell Weeks said.

Free cash flow – reflecting the company’s ability to repay debts and ultimately provide return to shareholders -- set an all-time record of $756 million in the fourth quarter.

While the $5.4 billion revenue total for the year is 9% below 2008’s $5.9 billion, it also reflects the grip of the global recession on most of the company’s markets one year ago. Early in 2009, the company set a $5 billion target for full-year sales; with improving performance quarter-over-quarter, total 2009 revenues were 8% above that goal.

Among the factors fueling 2009 performance:

• Particularly strong consumer demand for LCD products throughout the year;
• Stronger-than-expected demand for emissions control products as the recession-strapped auto industry began to rebuild inventory;
• The growing popularity of Corning Gorilla® glass, which is now used as a protective covering by more than 15 major electronic brands in more than 65 devices; and
• Successful cost reductions and inventory management across the company.

“Thanks to everyone’s hard work, Corning pulled through the worst economic recession since World War II,” Wendell told employees in his quarterly voicemail.

Besides Gorilla glass, Corning leaders also are also pointing to Corning’s improved competitive position with several other new products introduced last year:

• The industry-leading Gen 10 LCD glass;
• LANscape® Pretium® EDGE solutions for improved data center performance; and
• Advanced DuraTrap® AC products for heavy-duty diesel filters

The company also commercialized its green laser technology in 2009, enabling the first laser-based microprojectors for the consumer electronics market. And the acquisition of Axygen Biosciences is strengthening Corning’s position in the life sciences market.

“Our ability to achieve this year’s targets will require continued execution by all of us,” Wendell told employees. “But as we move on to new challenges, let’s not lose sight of what a remarkable year this has been. I hope you take some time to recognize and celebrate what we accomplished by working together as one Corning.”

Looking ahead, Corning expects the overall display glass market to continue to grow as the supply chain supports the expected retail growth of LCD products. Meanwhile, the company expects a dip in first-quarter telecommunications sales due to lower private network business in North America and lower fiber demand in China. Environmental products sales may also decline in the first quarter as the auto industry completes rebuilding of its inventory.

Regarding the recession, Corning leaders said they are basing 2010 assumptions on a mild recovery in the developed world economies and continued growth in China. Because of continued uncertainty in the economic environment, though, the company will continue to be cautious about spending as the year progresses.

Investors Get 'Up Close and Personal' with Innovations
February 8, 2010

Ken Sofio, vice president of Investor Relations, said this year's investor meeting was more interactive than ever before.

NEW YORK – Wall Street investors last week got an up-close look at how Corning innovations are making their way into some of the world’s most cutting-edge products and market opportunities. A host of interactive exhibits showcased the strength, reliability, and efficiency of Corning products – from those used in chemical processing and energy generation to remarkable cover glasses, displays, and more.

Nearly 200 analysts attended the annual investor meeting at TheTimesCenter in New York City. In the lively exhibit hall, analysts crowded around sheets of Gorilla® glass, trying their best to scratch it (they couldn't), and fired balls of ice through a high-powered "cannon," trying to get Corning's photovoltaic glass to shatter (it didn't.) They had a chance to see and feel many other innovations, including paper-thin, flexible glass and the Microvision handheld projector, featuring Corning Green Laser G-1000 as an embedded solution.

After the 75-minute-long innovation exhibit, Corning leaders began several hours of presentations and discussions on the company’s 2010 outlook, innovation pipeline, and strategies for creating new revenue opportunities. About 400 additional investors joined the presentation portion of the meeting via webcast and phone.

Ken Sofio, vice president of Investor Relations, said the event met all its objectives of being transparent and candid with investors about all aspects of the company’s operations and expectations for the year ahead. And while no one can predict short-term stock fluctuations in a jittery global market, many analysts expressed their overall confidence in Corning’s performance in their post-meeting reports.

One analyst followed up the meeting in an e-mail to Ken: “Great set of exhibits (I particularly enjoyed the Gorilla glass demo), and comprehensive discussion of major business units and forecasts. Corning sets the bar for degree of transparency and access to management with these events.”

Corning Whistle, A Blast from the Past, Has New Home
February 2, 2010

CORNING , N.Y. – Since 1929, the company’s historic factory whistle has blown eight times a day from atop the old Southside Powerhouse building west of Headquarters. As of this week, the whistle has a new home: the roof of the Northside Powerhouse, where it will take advantage of an energy-efficient steam system.

The Southside Powerhouse generates super-heated and pressurized steam to provide hot water to Corning Headquarters and the Refractories plant – it has also powered the whistle through its steam-generating system. But a newer, high-efficiency hot-water system is replacing the Southside’s aging equipment, with less by-product steam for the whistle. Meanwhile, the combined heat and power systems at the Northside facility already generates enough high-pressure steam to efficiently fuel the short whistle blasts. The move will result in an overall 20 percent reduction in energy consumption.

Most local residents and employees won’t even be aware of the switch of location, said Business Services Vice President Mike Donnelly. “It may sound slightly different to some people, depending on where you are in relation to the new location,” he said. “But basically, there’s no change – other than a lot of energy savings for Corning.”

This actually isn’t the whistle’s first move. It sat atop other Corning buildings as far back as the 1880s before moving to the “new” powerhouse in 1929. Once a means of alerting shift workers that it was time to report to work or take a break, the whistle has long since become simply a part of the fabric of the community. “We wanted to preserve the tradition, and we worked hard to ensure we could replicate the sound and tone at the new location,” Mike added.

The old whistle in its new home will continue blowing eight times a day, every day except Sunday: 6:45 a.m. (two blasts); 7 a.m. (one blast); 7:45 a.m. (two blasts); 8 a.m. (one blast); noon (one blast); 12:45 p.m. (two blasts); 1 p.m. (one blast); and 5 p.m. (one blast).

The crew planning and executing the whistle move gathered to watch its first successful blast on the Northside Powerhouse.	Corning’s whistle blast pure steam. This photo shows one of the whistle’s last blasts from its old Southside Powerhouse location.

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