Corning Incorporated (GLW)

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Corning Incorporated(GLW)

• Created by
• Jason Lamport
• Thomas Li
• Yuchen Su
• Ghazey Aleck

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Corning Incorporated

• History

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Corning Incorporated

• Corning Inc. is an American manufacturer of
  glass, ceramics, and related materials.
• Founded in 1851, Incorporated in 1989.
• Based in Corning, NY
• -24,000 Employees
• Ranked 414 on Fortune 500
• Member of SP 500 Index

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Shift to Display Technology from Telecom

• Shift from Telecom to Display Technology starting
  in 2001
• Saw significant declines in telecom demand
• New tech allowed more info to be carried in
  existing lines
• Divestiture of telecom businesses
• General business restructuring in 2002
• Research in liquid crystal technology (LCD)
• Continued growth of LCD demand led to segment
  shift with LCD as focus

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Business Sectors

• Display technologies
• -Liquid crystal display (LCD)
• Telecommunications
• - Market leader in fiber optics
• Environmental Technologies
• - Ceramic technology used for emission and
  pollution control
• Specialty Materials
• -Glass, ceramics, semiconductor optics
• Life Sciences
• -Laboratory products

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Joint Ventures

• Dow Corning
• Quest Diagnostics
• Covance
• Samsung

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Corning Incorporated

• Financials

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Five Year Price Chart
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Revenue and EPS
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Revenue Breakdown
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Competitors and Financials
  Corning Asahi Glass Furukawa Sumitomo
Market Cap 28.81B 12.61B 2.73B 9.98B
Revenue 6.26B 15.54B 10.59B 23.83B
Net Income 3.11B 1.42B 213.04M 711.01M
Gross Margin 48.30 35.21 17.25 18.42
Operating Margin 20.59 18.66 16.80 4.05
Net Income Margin 53.30 10.60 4.04 3.94
EPS 1.97 1.17 3.03 8.96
P/E 9.09 8.63 12.57 14.03
Forward P/E 9.15 8.45 10.56 10.25
Debt / Equity 11.48 67.48 125 37.18
Dvd Yld 1.2384 N/A N/A N/A
Current Ratio 4.43 1.72 1.23 1.79
ROA 14.77 6.53 2.11 3.08
ROE 20.21 15.57 11.19 6.54
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Corning Incorporated

• Recent News
• Risk Factors

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Recent News

• Plaslab S.A.S acquisition complete
• Shrink licenses Cornings microfluid technology
• Corning names two new executive vice presidents
• Gorilla Glass receives Corporate Technical
  Achievement Award from American Ceramic Society

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Risk Factors

• Current economic conditions
• Heavily depended on consumer spending
• Cutting output due to lower demand for glass
  products
• Pricing pressures
• Growth of the Chinese consumer

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Income Concentrations
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Corning Incorporated

• Competitive Advantages

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Gorilla Glass
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Features

• Scratch resistant compression layer
• Durable
• Eco-friendly creation process
• Twice as strong and half as thing as regular glass

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Relevance

• More than 20 major makers of PC and handheld
  devices
• Already in 225 devices. More than 55 models will
  be released over the next six months.
• Dominant market share in Smartphones and tablets

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Smartphone Industry
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What Else We Like

• Dominate Share in the LCD Space
• 60 of LCD market share with Samsung Corning
• Double digit LCD sales growth expected in future
  years
• 10th Generation LCD manufacturing compatibilities
• Solid Fundamentals
• Research Oriented
• Increasing solar panel efficiency by 2
• Green lasers for mobile projection devices
• Large Cash Position - 2/ share
• Cost Reductions

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Corning Incorporated

• Discounted Cash Flow

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Conclusions

• Buy Recommendation
• Price Target of 19.62
• Analyst Rec 16 buys, 6 holds 1 sell
• Avg Price Target 22.24
• Solid Fundamentals
• Strong Growth Prospects
• Innovative Products