Corning reported Q2 GAAP sales of $3.2 billion, up 2% sequentially. Core sales were $3.5 billion, up 3% sequentially, driven by Display Technologies. GAAP and core sales were down year over year, reflecting continued lower demand in several markets. Second-quarter GAAP EPS was $0.33, up 65% sequentially.
In Optical Communications, sales were $1.07 billion, down 5% sequentially and 19% year over year, due to lower volume. The company said near-term demand for passive optical network products remains weak. Net income for Optical Communications was $140 million, down 12% sequentially and 23% year over year; the impact of lower volume was moderated by productivity improvements.
Wendell P. Weeks, chairman and chief executive officer, said, “Corning’s second-quarter results reflect progress on our comprehensive plan to improve profitability and cash flow – even in the current weak end-market environment. As expected, core gross margin expanded 1 percentage point sequentially, and has grown more than 2 percentage points since the beginning of the year. We also improved free cash flow to $310 million.”
Ed Schlesinger, executive vice president and chief financial officer, said, “In the second quarter, sales grew 3% sequentially as higher sales in Display Technologies more than offset a decline in Optical Communications. We executed well on our comprehensive plan to improve profitability and cash flow. Core operating income increased 16% sequentially, and free cash flow grew to $310 million.
