Wendell Weeks Emphasizes Sustainable Performance and "Unwavering" Commitment to Innovation
WENDELL WEEKS PREDICTS STRONG YEAR IN MAY 28 SPEECH TO INVESTORS. To read The LEADER's front-page story in its May 30 issue, go to:
http://www.the-leader.com/news/x244768291/Weeks-predicts-strong-year
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.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.
|
