Wendell P. Weeks, chairman and chief executive officer, said, “We delivered another strong quarter of year-over-year growth. Third-quarter core sales grew 8% to $3.73 billion, and core EPS grew 20% – more than double the rate of sales – to $0.54, with core operating margin expanding 160 basis points to 18.3%. These results demonstrate the powerful incrementals embedded in our ‘Springboard’ plan to add more than $3 billion in annualized sales – and achieve operating margin of 20% – by the end of 2026.”
Weeks continued, “In addition to delivering strong third-quarter results, we are marking strategic milestones in our ‘Springboard’ plan. In Display Technologies, we implemented price increases and expect to deliver segment net income of $900 million to $950 million in 2025 and to maintain net income margin of 25%. Additionally, in Optical Communications, our new products for generative AI are seeing strong demand and driving record year-over-year growth in our Enterprise business. We also recently announced a multiyear supply agreement, valued at more than $1 billion, with AT&T to provide next-generation fiber, cable, and connectivity solutions to support the expansion of AT&T’s fiber network and help bring high-speed internet to more Americans.”
Third-Quarter 2024 Financial Highlights:
- GAAP sales were $3.39 billion. Core sales were $3.73 billion.
- GAAP EPS was $(0.14). Core EPS was $0.54. The difference between GAAP and core EPS primarily reflected mainly non-cash, mark-to-market adjustments associated with the company’s translated earnings contracts and Japanese-yen-denominated debt; constant currency adjustments; and non-cash asset write-off charges.
- GAAP gross margin was 33.5%, and core gross margin was 39.2%, reflecting 190-basis-point and 220-basis-point year-over-year improvement, respectively.
- GAAP operating cash flow was $699 million, and adjusted free cash flow was $553 million.
Fourth-Quarter 2024 Outlook:
- In the fourth quarter, management expects year-over-year sales growth to accelerate and EPS to grow faster than sales, with core sales of ~$3.75 billion and core EPS in the range of $0.53 to $0.57.
