Corning Incorporated has recently released its 10-Q report, providing a detailed look at its recent financial performance and operations. The company engages in various businesses, including display technologies, optical communications, environmental technologies, specialty materials, and life sciences. Its products are used in televisions, notebook computers, handheld devices, telecommunications, mobile consumer electronics, semiconductor equipment optics, and more.
In the 10-Q report, Corning outlined its "Springboard" plan, aiming to add over $3 billion in annualized core sales with strong incremental profit and cash flow in the next three years. The company expects the first quarter of 2024 to be the lowest quarter for the year and anticipates growing by more than $3 billion in annualized core sales, driven by cyclical factors and secular trends.
In terms of financial performance, for the three months ended June 30, 2024, Corning reported net sales of $3,251 million, slightly up from the same period in 2023. However, for the six months ended June 30, 2024, net sales decreased by $195 million, or 3%, compared to the same period in 2023. The company's gross margin decreased by 6% for the three months ended June 30, 2024, primarily due to increased restructuring and asset write-off charges.
Selling, general and administrative expenses increased by 7% for the three months ended June 30, 2024, and remained consistent as a percentage of sales. Research, development, and engineering expenses remained relatively flat for the same period. Corning also reported a translated earnings contract gain, net, of $27 million for the three months ended June 30, 2024, compared to $116 million for the same period in 2023.
Income before income taxes decreased by $237 million and $169 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. The effective tax rate for the three and six months ended June 30, 2024, increased when compared to the same periods in 2023, primarily due to certain pre-tax losses with no corresponding expected tax benefit.
Net income attributable to Corning Incorporated for the three months ended June 30, 2024, was $104 million, a decrease of 63% compared to the same period in 2023. Basic earnings per common share for the same period were $0.12, down from $0.33 in 2023.
As a result of these announcements, the company's shares have moved -2.7% on the market, and are now trading at a price of $38.94. For more information, read the company's full 10-Q submission here.
