Corning Looks Up Q3: Fool by Numbers

On Oct. 24, Corning (NYSE: GLW), maker of light-bending products for the telecommunications and flat-panel display industry, released Q3 earnings for the period ended Sept. 30, 2006.

• Management said demand for glass products improved as customers geared up for strong fourth-quarter sales of LCD televisions, notebook computers, and desktop monitors.
  
  
• Cash and short-term investments increased to $2.8 billion because of the issuance of $250 million of long-term debt.
  
  
• For the fourth quarter, management estimates sales in the range of $1.28 billion to $1.33 billion, and EPS in the range of $0.26 to $0.29, before special items.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$1,296	$1,282	$1,188	7.9%
Net Profit	--	$438	$203	115.8%
EPS	$0.25	$0.27	$0.13	107.7%
Diluted Shares	--	1593	1552	(3.8%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	44.15%	45.88%	(1.73)
Operating Margin	15.91%	12.21%	3.70
Net Margin	34.17%	17.09%	17.08

*Expressed in percentage points.

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Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$2,812	$2,418	16.3%
Accounts Rec.	$753	$631	19.3%
Inventory	$673	$559	20.4%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$574	$554	3.6%
Long-Term Debt	$1,710	$1,804	(5.2%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	$1,175	$1,280	(8.2%)
Capital Expenditures	$892	$1,076	(17.1%)
Free Cash Flow	$283	$204	38.7%

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