Corning Inc., a leading technology company, reported a notable decline in its financial performance for the fourth quarter and the full year of 2023. The company experienced an 8% drop in core sales to $13.6 billion, and an 11% decrease in GAAP sales, totaling $12.6 billion for the year. In the fourth quarter alone, both GAAP and core sales fell by 12% and 10% respectively. Despite these challenges, Corning Inc. managed to achieve an adjusted free cash flow of $880 million in 2023.
This financial downturn has led to a significant workforce reduction, with approximately 1,000 employees globally, including around 200 in the Corning area, being laid off. This reduction accounts for about 2% of Corning Inc.’s global workforce of 50,000. CEO Wendell P. Weeks attributed the decline in demand across the company’s markets to supply chain corrections and macroeconomic factors.
Looking ahead, Corning Inc. remains optimistic for 2024, expecting a rebound in sales as markets normalize. The company forecasts an increase in sales by over $3 billion, which should positively impact profits and cash flow for shareholders. Ed Schlesinger, Executive Vice President, projects first-quarter core sales of about $3.1 billion and core EPS in the range of $0.32 to $0.38. Schlesinger anticipates the first quarter will be the lowest of the year, but expects a long-term profitable growth. He credits the company’s actions to raise prices, improve productivity, and reduce inventory for their resilient performance amid the downturn.
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