Corning Inc. recently cut about 1,500 jobs worldwide

Jeff Smith, The Leader
·4 min read

Corning Inc., cut close to 1,500 jobs worldwide in mid-January amid concerns about economic conditions.

A company spokesperson refused to say how many of those salaried employees who were cut worked at plants in the Greater Corning area.

“Based on the macroeconomic environments, Corning Inc. made some adjustments in our businesses that resulted in a limited reduction to our workforce,” a Corning Inc., spokesperson said. “We’re committed to treating impacted employees with dignity and respect aligned to Corning’s values.”

At look at the Corning Inc. Corporate Headquarters building off Market Street.
At look at the Corning Inc. Corporate Headquarters building off Market Street.

"Macroeconomic environments" refers to the larger economic forces shaping the business's fortunes at present, including inflation, consumer sentiment and supply and demand issues.

Corning Inc., anticipates the job cuts will affect less than 2.5% of the company’s more than 60,000 global employees, according to a Corning Inc., spokesperson.

“We are not able to share any further details," the spokesperson said when asked other questions about the workforce job reductions.

Corning Inc., reports fourth-quarter and full-year 2022 financial results

Fourth-Quarter 2022:

  • Fourth-quarter generally accepted accounting principles (GAAP) sales were $3.4 billion, and core sales were $3.6 billion.

  • Fourth-quarter GAAP earnings per share were negative $0.04, and core earnings per share were $0.47. The primary differences in those figures stemmed from restructuring charges taken in the fourth quarter and from non-cash, mark-to-market adjustments associated with the company’s currency-hedging contracts and Japanese-yen-denominated debt, the company said.

  • Free cash flow for the quarter was $377 million.

Full-Year 2022:  

  • For the full year, generally accepted accounting principles sales were $14.2 billion, up 1% year over year, and core sales were $14.8 billion, up 5%, versus 2021.

  • Optical Communications’ annual sales surpassed $5 billion, reaching an all-time high.

  • Display Technologies maintained stable pricing year over year despite a sharp drop in panel maker utilization in the second half.

  • Specialty Materials and Environmental Technologies delivered consistent sales year over year, outperforming depressed end markets.

  • Hemlock and Emerging Growth Businesses generated 34% year-over-year growth, driven primarily by solar sales, as well as strong year-over-year growth in Pharmaceutical Technologies and Automotive Glass Solutions.

  • Full-year GAAP earnings per share was $1.54, and core earnings per share was $2.09.

  • Full-year free cash flow was $1.24 billion.

“Throughout the year, a series of pandemic-driven effects continue to ripple across the global economy,” said Wendell P. Weeks, Corning Inc., chairman and chief executive officer. “We executed well to grow sales and advance strategic initiatives while addressing the implications that the current environment poses for margins and cash generation.”

Weeks said he is pleased with the sales growth as Corning Inc., continue to deliver despite recession-level demand in markets that constitute about half of the company’s sales.

“Cars, television, smartphones, laptop and tablets are all well below of what we estimate at the normal range,” Weeks said. “We offset this weak consumer demand with the strength of our positions in the growing optical communications and solar markets.”

First-Quarter 2023 Outlook:

  • For the first quarter, management expects core sales in the range of $3.2 billion to $3.4 billion and core earnings per share in the range of $0.35 to $0.42. Management expects sales to decline more than seasonally due to pandemic-related disruptions in China. Management took actions to increase price and improve productivity in the fourth quarter of 2022. The company expects the benefits of these actions to begin in the first quarter of 2023 and, as a result, profitability to improve despite an anticipated sales decline.

Weeks said Corning Inc., will continue to focus on operating each of its businesses well in 2023, including adapting to global and market dynamics, while simultaneously advancing long-term growth initiatives and capabilities that will drive the company’s success as the global economy stabilizes.

How COVID-19 situation unfolding in China affects Corning Inc.'s bottom line

Corning is coping with the impact of China pulling back from its stringent restrictions on its citizens aimed at limiting the spread of the COVID-19 virus.

“What is driving our below-season outlook for the first quarter sales is a situation unfolding in China where consumer sentiment was already low,” Weeks said. “In December, China shifted its approach to the pandemic and significantly COVID outbreaks ensued.”

Weeks said this resulted in lower consumer spending and workforce shortages, which impacted the demand for Corning Inc., products, particularly in display, environmental and specialty materials.

“We expect China to overcome these issues and things to improve, but it is too early to call specific timing of improvements, consumer sentiment and demand," Weeks said.

Corning Inc.'s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductor, and life sciences.

This article originally appeared on The Leader: Corning Inc. releases 2022 fourth-quarter and full-year results