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.

Margins are the earnings engine. See how they work.

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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