Corning Inc. (Corning) highlighted its strength and positive performance despite COVID-19, attributing it to several initiatives during the company’s second fiscal quarter financial report conference call. Corning manufactures Gorilla Glass, which is found in both the smartphone and automotive industry, among others.
“During the second quarter, we made great strides in positioning Corning to emerge stronger from the global health crisis and resume growth. Sales, net income, EPS, and free cash flow all increased sequentially,” said Wendell P. Weeks, chairman, CEO, and president. “Corning advanced multiple initiatives throughout the second quarter, including the launch of Corning Gorilla Glass Victus.”
During the call company representatives stated its core sales increased by 2%, while the generally accepted accounting principles (GAAP) were up by 7%. The company’s automotive market fared well, according to the financial report. “On the COVID-19 front, we continue to seek ways to leverage our deep technology, manufacturing, and engineering capabilities to combat the pandemic directly. We were delighted that Corning Valor Glass was selected by the U.S. Department of Health & Human Services and the Department of Defense to accelerate delivery of COVID-19 vaccines,” said Weeks.
According to Tony Tripeny, Corning executive vice president and chief financial officer, the company generated $285 million in free cash flow and finished the quarter with $2.2 billion in cash. He said the company is well on track to generate a positive free cash flow for the remainder of the year.
“We came into this economic downturn with a balance sheet built for times like these and took actions during the quarter to ensure we have the financial resources needed for the duration,” said Tripeny. Corning’s demand and visibility improved throughout the second quarter, as mentioned in the financial call. As a result, Corning expects sales and profit growth in its third quarter.
“Our financial position is strong. We are becoming more efficient, and we have the capacity in place to meet expected growth with minimal investment. We expect improved profitability and return on invested capital as we grow sales,” said Tripeny.