Speaking at the annual meeting of shareholders, Wendell P. Weeks, the Chairman and CEO of Corning Incorporated (NYSE:GLW), stated that the company is financially sound, the businesses are expanding and the management is capturing new opportunities to use the expertise to deal with touch technology challenges. He expressed his confidence in the company’s future and stated it is multiple businesses that are contributing to the company’s growth.
The performance
The CEO stated FY2014 as an “outstanding year,” highlighting the highest ever sales in Corning`s history. Weeks attributed jump in profits to a combination of cost-reductions and top-line growth across the organization. He stated that the company surpassed expectations for synergies as it integrated with Corning Precision Materials Co., Ltd. He further added that the focus in FY2015 is to build on the strong momentum and grow in multiple segments. In 1Q2015, the company’s core sales jumped in four of five business divisions.
The growth
Weeks addressed shareholders and said that it is innovation leading Corning to growth path. He highlighted the instances of various recent products that would add to revenue in FY2015 and beyond. The list of products includes Corning® Gorilla® Glass 4, ONE(TM) Wireless and FLORA(TM). In addition to innovation, Corning is extending its reach to entirely new businesses. With Gorilla® Glass Automotive it is leveraging its longstanding association in the automotive market to develop a new market opportunity for Corning specialty glass. They feature lower weight indicating better fuel economy.
Diverse portfolio
Answering the questions of shareholders, Weeks said that there is a reason behind Corning maintaining a diverse portfolio. There may be unexpected disruptions in one or two markets but operating in diverse markets helps to reduce the volatility. As in FY2014, the growth in the life science and specialty business was not strong. However, Corning posted strong growth in display, environmental technologies and optical communications businesses.
