Corning CEO: “Our plans for the next four years reflect a new growth era”
- Delivers on 2016-2019 Strategy and Capital Allocation Framework goals and introduces a new 2020-2023 Strategy and Growth Framework
- Expects growth investments to drive 6-8% sales and 12-15% EPS compound annual growth rates in 2020- 2023
- Targets shareholder distributions of $8 billion to $10 billion, including annual increases in dividend per share of at least 10%
“Over the past four years, Corning has created substantial shareholder value through successful execution of our Strategy and Capital Allocation Framework,” said Wendell P. Weeks, chairman, chief executive officer, and president. “By the end of the year, we will have met or exceeded all the goals we set in late 2015, including returning more than $12.5 billion to shareholders, while investing $11 billion to extend our leadership and deliver growth. We did what we said we would do, and our shareholders have benefitted.”
“We are excited to introduce our new Strategy and Growth Framework and provide insights into how Corning will generate growth and additional value through 2023,” Weeks added.
At today’s meeting, senior leaders will outline the specific leadership priorities and key drivers for the 2020 to 2023 period. Corning expects:
- 6%-8% compound annual sales growth –primarily driven by organic growth in Corning’s market-access platforms. Specific goals include:
- Optical Communications to grow approximately twice as fast as the passive optical market, driven by 5G and next-gen hyperscale data centers;
- Automotive market sales to double by 2023, driven by growth in gasoline particulate filters and the company's new automative glass solutions business;
- Mobile Consumer Electronics market sales to continue on a path to doubling, as Corning captures more value per device and wins in new device categories with Corning® Gorilla® Glass and other innovations;
- Life Sciences Vessels market sales to grow at least double the industry rate, driven by cell and gene therapy related demand; launch of Valor® Glass for pharmaceutical packaging has potential to become a multi-billion dollar franchise;
- Display to be stable as price declines remain moderate, television screen size continues to increase, and Gen 10.5 plants come on line.
- 12%-15% compound annual earnings per share growth – Corning expects strong compound earnings per share growth, reflecting strong sales growth, improved operating margin, and continued share repurchases.
- Growing operating cash flow- Based on the expected strong performance through the 2020-2023 Strategy and Growth Framework, Corning anticipates generating $16 billion to $18 billion in total operating cash flow before RD&E, up significantly from the $13 billion expected in 2016-2019.
- Continued investment to extend leadership and growth – To capture near and long-term growth opportunities, Corning expects to invest $10 billion to $12 billion in RD&E, capital and mergers and acquisitions. Its primary focus on organic growth will continue.
- Sustained commitment to delivering attractive shareholder returns – Corning expects to grow dividends per share at least 10% annually, and to repurchase shares. The company expects to distribute $8 billion to $10 billion to shareholders.
