Corning Inc. (NYSE:GLW) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 08:30 am ET


Corning Inc. (NYSE:GLW) Q4 2014 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the Corning Incorporated Fourth Quarter 2014 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, instructions will be given at that time.

(Operator Instruction) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Division VP of IR, Ms. Ann Nicholson. Please go ahead.

Ann Nicholson

Thank you, Greg, and good morning everyone. Welcome to Corning fourth quarter conference call. With me today is Jim Flaws, Vice Chairman and CFO. (Forward-Looking Cautionary Statements)

You should also note that this presentation contains a number of non-GAAP measures, reconciliations can be found on our website. Now I'll turn the call over to Jim.

Jim Flaws

Thanks Ann, good morning everyone. I am delighted to share our fourth quarter and full year results with you this morning. Corning, had an outstanding quarter that wrapped up two consecutive calendar years of quarterly earnings growth. We enter 2014 with a goal to grow sales and earnings significantly. We delivered on this goal with year-over-year earnings growth in every quarter.

For the full year sales grew 29% and earnings per share grew 24%. Integration of CPM in Korea was a significant driver of the earnings increase and additionally in our four other non-displaced segments we achieved excellent growth, which of course has been a long-standing goal. In aggregate they grew sales and net income approximately 10%.

We also delivered on our commitment to return cash to shareholders with our recent December announcement of a 20% increase in the dividend in a new share repurchase program of 1.5 million. We feel great momentum entering 2015 and expect to deliver continued sales and earnings growth in the new year.

So now I'd like to turn to our quarter four results beginning with some highlights. We had a fantastic quarter that was better than we originally expected. Earnings per share were up 55% versus last year led by the consolidation of CPM. The Optical Communications, environmental, Dow Corning's equity earnings and a slightly lower tax rate also contributing to growth.

LCD glass volume was better than expected driven by a strong demand for larger LCD televisions. The volume up in the mid teens year-over-year and mid-single digit sequentially, displays set a quarterly record for sales volume.

LCD glass price declines were moderate again as expected and declined less than Q3. LCD glass demand continues to be good, entering Q1 and we believe this is due to strong retail demand in Q4 for larger televisions, replenishing supply for Q1, which is also typically good quarter for retail television sales. We launched our next generation of Gorilla Glass during the quarter and is receiving very favorable reviews by customers and at the recent Consumer Electronics Show.

Specialty material sales in the quarter exceeded our expectations driven by demand for Gorilla Glass for new product launches. CPM integration activities have gone very well and we