Corning sets target of 6%-8% compound annual sales growth in 2020-2023 framework
Corning will host a meeting in New York City with investors and industry analysts to review the company's new strategic, operational, and financial priorities to deliver continued growth and create additional value for shareholders. Corning will also discuss progress and pipeline developments across its five market-access platforms. "Over the past four years, Corning has created substantial shareholder value through successful execution of our Strategy and Capital Allocation Framework," said CEO Wendell Weeks. "By the end of the year, we will have met or exceeded all the goals we set in late 2015, including returning more than $12.5B to shareholders, while investing $11B 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." At themeeting, 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 automotive 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. Expects 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. Based on the expected strong performance through the 2020-2023 Strategy and Growth Framework, Corning anticipates generating $16B to $18B in total operating cash flow before RD&E, up significantly from the $13B expected in 2016-2019. To capture near and long-term growth opportunities, Corning expects to invest $10B to $12B in RD&E, capital and mergers and acquisitions. Its primary focus on organic growth will continue. Corning expects to grow dividends per share at least 10% annually, and to repurchase shares. The company expects to distribute $8B to $10B to shareholders.