Analysis of Reportable Segments
Corning Inc. operates in 5 segments: Optical Communications; Display Technologies; Specialty Materials; Environmental Technologies; and Life Sciences.
Segment Profit Margin
Corning Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 11.91% | 13.16% | 12.72% | 10.27% | 12.03% |
| Display Technologies | 23.84% | 23.26% | 25.95% | 22.60% | 24.15% |
| Specialty Materials | 10.83% | 16.98% | 18.48% | 22.45% | 18.95% |
| Environmental Technologies | 21.86% | 18.43% | 16.96% | 14.38% | 17.55% |
| Life Sciences | 5.21% | 12.46% | 15.72% | 13.93% | 14.78% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The segment profit margins exhibit divergent performance trajectories between 2019 and 2023. While certain divisions demonstrate stability or growth, other segments have faced significant margin compression, particularly in the final year of the analyzed period.
- Display Technologies
- This segment maintains the highest and most consistent profitability among all reportable segments. Margins fluctuated within a narrow range between 22.60% and 25.95%, ending 2023 at 23.84%, which underscores a resilient profit profile.
- Environmental Technologies
- A sustained upward trend is observed in this segment. After a low of 14.38% in 2020, the profit margin expanded consistently over the subsequent three years, culminating in a five-year peak of 21.86% by December 31, 2023.
- Optical Communications
- Profitability in this division remained relatively stable, characterized by moderate volatility. The margin dipped to 10.27% in 2020 before recovering to a peak of 13.16% in 2022 and moderating slightly to 11.91% in 2023.
- Specialty Materials
- A notable downward trajectory is evident following a peak of 22.45% in 2020. The profit margin declined steadily each subsequent year, experiencing a sharp contraction to 10.83% by the end of 2023.
- Life Sciences
- This segment experienced the most significant margin erosion. After maintaining a range between 12.46% and 15.72% from 2019 through 2022, the profit margin fell precipitously to 5.21% in 2023, representing the lowest margin across all segments and years.
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Segment Profit Margin: Optical Communications
Corning Inc.; Optical Communications; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 478) | 661) | 553) | 366) | 489) |
| Net sales | 4,012) | 5,023) | 4,349) | 3,563) | 4,064) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 11.91% | 13.16% | 12.72% | 10.27% | 12.03% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Net income ÷ Net sales
= 100 × 478 ÷ 4,012 = 11.91%
The financial performance of the Optical Communications segment exhibits a cyclical trend characterized by a contraction in 2020, a period of robust growth peaking in 2022, and a subsequent decline in 2023. Profitability metrics demonstrate a strong correlation with overall net sales, suggesting that the segment's margins are sensitive to fluctuations in revenue volume.
- Net Sales and Revenue Trends
- Net sales experienced an initial decline from US$ 4,064 million in 2019 to US$ 3,563 million in 2020. This was followed by a two-year expansion phase, reaching a peak of US$ 5,023 million in 2022. However, a significant contraction occurred in 2023, with net sales falling to US$ 4,012 million, effectively returning to 2019 levels.
- Segment Profit Margin Analysis
- The segment profit margin followed a trajectory closely aligned with revenue. The margin compressed to a five-year low of 10.27% in 2020. A recovery phase ensued, with margins improving to 12.72% in 2021 and peaking at 13.16% in 2022. In 2023, the margin decreased to 11.91%, reflecting a reduction in operational efficiency or pricing pressure coinciding with the drop in sales.
- Net Income Performance
- Net income mirrored the volatility of the sales and margin trends. After a dip to US$ 366 million in 2020, net income rose steadily to peak at US$ 661 million in 2022. The subsequent decline in 2023 to US$ 478 million indicates that the reduction in net sales had a direct and proportional impact on the bottom line.
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Segment Profit Margin: Display Technologies
Corning Inc.; Display Technologies; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 842) | 769) | 960) | 717) | 786) |
| Net sales | 3,532) | 3,306) | 3,700) | 3,172) | 3,254) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 23.84% | 23.26% | 25.95% | 22.60% | 24.15% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Net income ÷ Net sales
= 100 × 842 ÷ 3,532 = 23.84%
The financial performance of the Display Technologies segment from 2019 to 2023 is characterized by moderate volatility in both revenue and profitability, with a general trend of recovery following periodic contractions.
- Revenue and Net Income Correlation
- Net sales reached a peak in 2021 at US$ 3,700 million, which coincided with the highest recorded net income of US$ 960 million during the analyzed period. A subsequent contraction occurred in 2022, with net sales decreasing to US$ 3,306 million and net income falling to US$ 769 million. By 2023, a recovery trend was established, with sales increasing to US$ 3,532 million and net income rising to US$ 842 million.
- Segment Profit Margin Analysis
- The segment profit margin exhibited fluctuations within a range of 22.60% to 25.95%. A decline was observed in 2020, where the margin fell to 22.60%, followed by a significant increase to 25.95% in 2021. The margin then retracted to 23.26% in 2022 before showing a slight upward correction to 23.84% in 2023.
- Operational Stability and Trends
- Despite fluctuations in top-line revenue, the profit margin remained relatively resilient, fluctuating by fewer than 340 basis points over the five-year horizon. The correlation between the 2021 revenue peak and the margin peak suggests that the segment benefited from improved operational leverage or favorable pricing during that period. The movement in 2023 indicates a stabilization of margins as the segment recovers from the 2022 downturn.
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Segment Profit Margin: Specialty Materials
Corning Inc.; Specialty Materials; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 202) | 340) | 371) | 423) | 302) |
| Net sales | 1,865) | 2,002) | 2,008) | 1,884) | 1,594) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 10.83% | 16.98% | 18.48% | 22.45% | 18.95% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Net income ÷ Net sales
= 100 × 202 ÷ 1,865 = 10.83%
The financial performance of the Specialty Materials segment between 2019 and 2023 is characterized by an initial period of expansion followed by a sustained contraction in both profitability and revenue.
- Net Sales Trends
- Net sales experienced an upward trajectory from 2019 to 2021, increasing from US$ 1,594 million to a peak of US$ 2,008 million. Following this peak, a reversal occurred, with sales declining to US$ 2,002 million in 2022 and further decreasing to US$ 1,865 million by the end of 2023.
- Net Income Performance
- Net income peaked in 2020 at US$ 423 million, a significant increase from the US$ 302 million reported in 2019. However, a consistent downward trend followed, with net income falling annually to US$ 371 million in 2021, US$ 340 million in 2022, and reaching a period low of US$ 202 million in 2023.
- Segment Profit Margin Analysis
- The segment profit margin exhibited a sharp peak of 22.45% in 2020. From that point, a steady decline is observed, with the margin falling to 18.48% in 2021, 16.98% in 2022, and ultimately dropping to 10.83% in 2023. This represents a reduction of more than half of the peak margin achieved in 2020.
The analysis reveals a critical divergence between revenue and profitability. While net sales in 2023 remained higher than 2019 levels, the profit margin and net income both fell significantly below their 2019 benchmarks. The precipitous decline in the profit margin from 22.45% in 2020 to 10.83% in 2023 suggests that the segment faced substantial cost pressures or a loss of pricing power that outweighed the impact of sales fluctuations.
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Segment Profit Margin: Environmental Technologies
Corning Inc.; Environmental Technologies; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 386) | 292) | 269) | 197) | 263) |
| Net sales | 1,766) | 1,584) | 1,586) | 1,370) | 1,499) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 21.86% | 18.43% | 16.96% | 14.38% | 17.55% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Net income ÷ Net sales
= 100 × 386 ÷ 1,766 = 21.86%
The Environmental Technologies segment demonstrated a period of initial contraction followed by a robust recovery and sustained expansion in profitability and revenue between 2019 and 2023.
- Net Sales Trends
- Net sales experienced a decline in 2020, dropping to US$ 1,370 million from US$ 1,499 million in 2019. Following this dip, sales recovered to US$ 1,586 million in 2021 and remained nearly flat through 2022 at US$ 1,584 million. The period concluded with a significant increase in 2023, reaching a peak of US$ 1,766 million.
- Net Income Performance
- Net income followed a similar trajectory to sales, decreasing from US$ 263 million in 2019 to US$ 197 million in 2020. However, the segment achieved consistent year-over-year growth from 2021 through 2023, with net income rising to US$ 269 million, US$ 292 million, and finally US$ 386 million, respectively.
- Segment Profit Margin Evolution
- The segment profit margin exhibited a V-shaped recovery and subsequent growth phase. After falling from 17.55% in 2019 to a low of 14.38% in 2020, the margin expanded continuously for three years. The margin reached 16.96% in 2021, 18.43% in 2022, and peaked at 21.86% in 2023. This upward trend suggests a significant improvement in operational efficiency and cost management relative to revenue growth.
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Segment Profit Margin: Life Sciences
Corning Inc.; Life Sciences; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 50) | 153) | 194) | 139) | 150) |
| Net sales | 959) | 1,228) | 1,234) | 998) | 1,015) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 5.21% | 12.46% | 15.72% | 13.93% | 14.78% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment profit margin = 100 × Net income ÷ Net sales
= 100 × 50 ÷ 959 = 5.21%
The Life Sciences segment experienced a period of growth and relative stability between 2019 and 2021, followed by a significant contraction in both top-line revenue and profitability through 2023.
- Revenue Performance
- Net sales exhibited a growth trend peaking in 2021 at 1,234 million US$, up from 1,015 million US$ in 2019. However, a notable decline occurred in 2023, with net sales falling to 959 million US$, marking the lowest revenue level within the five-year period analyzed.
- Net Income Trends
- Net income mirrored the revenue trajectory but showed greater volatility. After reaching a peak of 194 million US$ in 2021, net income decreased to 153 million US$ in 2022 and plummeted to 50 million US$ in 2023. The reduction in net income from 2021 to 2023 represents a substantial contraction in absolute earnings.
- Segment Profit Margin Analysis
- The segment profit margin remained relatively stable between 13.93% and 15.72% from 2019 to 2021. A downward trend emerged in 2022, where the margin compressed to 12.46%, followed by a sharp decline to 5.21% in 2023. This precipitous drop suggests that operating expenses increased disproportionately relative to sales or that the segment faced significant pricing pressures in the final year.
The convergence of declining net sales and a sharply eroding profit margin indicates a significant deterioration in the operational efficiency and profitability of the Life Sciences segment by the end of 2023.
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Segment Return on Assets (Segment ROA)
Corning Inc., ROA by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 14.75% | 20.06% | 17.37% | 12.76% | 16.28% |
| Display Technologies | 10.66% | 9.49% | 11.30% | 8.17% | 8.71% |
| Specialty Materials | 8.16% | 14.06% | 16.07% | 16.58% | 12.41% |
| Environmental Technologies | 20.61% | 14.17% | 12.51% | 9.92% | 13.76% |
| Life Sciences | 6.39% | 17.75% | 24.53% | 20.35% | 23.92% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
An analysis of segment return on assets (ROA) from 2019 to 2023 reveals divergent performance trajectories across the different business units. While some segments demonstrated resilience or growth in asset efficiency, others experienced significant declines, particularly in the final year of the period.
- Optical Communications
- This segment exhibited volatility, with ROA fluctuating between 12.76% and 20.06%. A peak in efficiency was reached in 2022 at 20.06%, followed by a contraction to 14.75% in 2023, indicating a decrease in the profitability generated per unit of asset.
- Display Technologies
- The most stable performance was observed in this segment, with ROA consistently remaining within a narrow range. After a low of 8.17% in 2020, the return improved and stabilized, ending the period at 10.66% in 2023.
- Specialty Materials
- A downward trend is evident following a peak of 16.58% in 2020. The ROA declined steadily over the subsequent three years, experiencing a sharp drop to 8.16% in 2023, suggesting a deterioration in asset utilization or profitability.
- Environmental Technologies
- This segment showed the most positive momentum toward the end of the period. After dipping to 9.92% in 2020, the ROA grew consistently, culminating in a period high of 20.61% in 2023, marking it as the highest performing segment in terms of asset return for that year.
- Life Sciences
- Historically the highest performing segment with a peak of 24.53% in 2021, Life Sciences underwent a severe decline in the latter part of the period. The ROA fell sharply to 17.75% in 2022 and further plummeted to 6.39% in 2023, representing the most significant loss in asset efficiency among all reportable segments.
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Segment ROA: Optical Communications
Corning Inc.; Optical Communications; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 478) | 661) | 553) | 366) | 489) |
| Assets | 3,241) | 3,295) | 3,183) | 2,868) | 3,004) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 14.75% | 20.06% | 17.37% | 12.76% | 16.28% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Net income ÷ Assets
= 100 × 478 ÷ 3,241 = 14.75%
The Optical Communications segment experienced significant volatility in its Return on Assets (ROA) between 2019 and 2023. Following an initial decline in 2020, the segment demonstrated a strong recovery trend that peaked in 2022, before undergoing a notable contraction in 2023.
- ROA Volatility and Peak Performance
- The segment's ROA fluctuated from 16.28% in 2019 to a low of 12.76% in 2020. A subsequent period of growth saw the ratio rise to 17.37% in 2021 and reach a five-year peak of 20.06% in 2022. This peak coincides with the highest reported net income of 661 million USD during the analyzed period.
- Asset Base Stability
- Total assets remained relatively stable, ranging from a minimum of 2,868 million USD in 2020 to a maximum of 3,295 million USD in 2022. The lack of drastic shifts in the asset base indicates that changes in ROA were primarily driven by fluctuations in net income rather than significant changes in capital investment or divestment.
- Recent Performance Contraction
- In 2023, the ROA decreased to 14.75%. This decline is attributable to a reduction in net income to 478 million USD, while the asset base remained elevated at 3,241 million USD, resulting in diminished asset productivity compared to the previous two years.
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Segment ROA: Display Technologies
Corning Inc.; Display Technologies; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 842) | 769) | 960) | 717) | 786) |
| Assets | 7,899) | 8,104) | 8,498) | 8,777) | 9,022) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 10.66% | 9.49% | 11.30% | 8.17% | 8.71% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Net income ÷ Assets
= 100 × 842 ÷ 7,899 = 10.66%
The Display Technologies segment exhibited a combination of asset optimization and fluctuating profitability between 2019 and 2023, resulting in an overall improvement in asset utilization efficiency.
- Asset Base Trajectory
- A consistent downward trend in total assets is observed, with values decreasing from 9,022 million US dollars in 2019 to 7,899 million US dollars by the end of 2023. This steady annual reduction indicates a strategic contraction or depreciation of the asset base over the five-year period.
- Net Income Volatility
- Net income demonstrated significant fluctuations. A decrease was recorded in 2020, falling to 717 million US dollars, followed by a sharp increase to a peak of 960 million US dollars in 2021. A subsequent contraction occurred in 2022, with income dropping to 769 million US dollars, before recovering to 842 million US dollars in 2023.
- Segment Return on Assets (ROA) Analysis
- The Return on Assets reflected the interplay between a shrinking asset base and variable net income. After a low of 8.17% in 2020, the ROA climbed to a period high of 11.30% in 2021. Although a decline to 9.49% occurred in 2022, the segment ended the period with a strengthened ROA of 10.66% in 2023. The data indicates that the reduction in assets has served as a lever to maintain higher efficiency ratios compared to the 2019-2020 levels, even when net income was not at its peak.
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Segment ROA: Specialty Materials
Corning Inc.; Specialty Materials; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 202) | 340) | 371) | 423) | 302) |
| Assets | 2,476) | 2,419) | 2,308) | 2,551) | 2,433) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 8.16% | 14.06% | 16.07% | 16.58% | 12.41% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Net income ÷ Assets
= 100 × 202 ÷ 2,476 = 8.16%
The Specialty Materials segment exhibited a period of initial growth followed by a sustained decline in profitability and asset efficiency from 2019 through 2023.
- Net Income Trends
- Net income experienced a peak in 2020 at 423 million US$, representing a substantial increase from 302 million US$ in 2019. Following this peak, a continuous downward trend was observed over the subsequent three years, culminating in a five-year low of 202 million US$ by December 31, 2023.
- Asset Base Stability
- The asset base remained relatively stable throughout the period, with values oscillating between a minimum of 2,308 million US$ in 2021 and a maximum of 2,551 million US$ in 2020. The final asset value of 2,476 million US$ in 2023 indicates that the segment maintained a consistent level of investment in assets despite the volatility in earnings.
- Segment Return on Assets (ROA)
- The Segment ROA followed a trajectory closely aligned with net income. After rising from 12.41% in 2019 to a peak of 16.58% in 2020, the ratio entered a steady decline. A sharp contraction is noted between 2022 and 2023, where the ROA fell from 14.06% to 8.16%. This suggests a marked reduction in asset utilization efficiency, as the decline in ROA was driven by falling net income while the asset base remained largely unchanged.
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Segment ROA: Environmental Technologies
Corning Inc.; Environmental Technologies; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 386) | 292) | 269) | 197) | 263) |
| Assets | 1,873) | 2,061) | 2,150) | 1,986) | 1,912) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 20.61% | 14.17% | 12.51% | 9.92% | 13.76% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Net income ÷ Assets
= 100 × 386 ÷ 1,873 = 20.61%
The Environmental Technologies segment experienced a period of volatility followed by significant expansion in profitability and asset efficiency between 2019 and 2023. While the segment faced a contraction in performance in 2020, a consistent recovery trend emerged thereafter, culminating in a peak in Return on Assets (ROA) by the end of the period.
- Net Income Trends
- Net income exhibited a V-shaped recovery pattern. After declining from US$ 263 million in 2019 to US$ 197 million in 2020, earnings grew steadily over the subsequent three years. This growth accelerated in 2023, reaching a five-year high of US$ 386 million, representing a substantial increase in absolute profitability compared to the 2019 baseline.
- Asset Base Evolution
- The asset base showed a non-linear trajectory, peaking in 2021 at US$ 2,150 million. Following this peak, a contraction was observed, with assets decreasing to US$ 1,873 million by December 31, 2023. This suggests a reduction in the capital employed within the segment during the final two years of the analyzed period.
- Segment Return on Assets (ROA)
- Segment ROA mirrored the volatility of net income in the early period, dropping from 13.76% in 2019 to 9.92% in 2020. However, the ratio improved consistently from 2021 onward. The increase to 20.61% in 2023 was driven by the simultaneous effect of rising net income and a shrinking asset base, indicating a marked improvement in operational efficiency and the productivity of deployed assets.
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Segment ROA: Life Sciences
Corning Inc.; Life Sciences; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income | 50) | 153) | 194) | 139) | 150) |
| Assets | 782) | 862) | 791) | 683) | 627) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 6.39% | 17.75% | 24.53% | 20.35% | 23.92% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment ROA = 100 × Net income ÷ Assets
= 100 × 50 ÷ 782 = 6.39%
The Life Sciences segment experienced a period of relative stability and growth in profitability through 2021, followed by a marked decline in efficiency and earnings through the end of 2023. The overall trajectory is characterized by an initial expansion of the asset base that failed to generate proportional income growth in the latter years of the period.
- Net Income Volatility
- Net income peaked in 2021 at 194 million USD, representing a significant increase from the 150 million USD reported in 2019. However, a sharp downward trend followed, with earnings falling to 153 million USD in 2022 and dropping precipitously to 50 million USD by December 31, 2023, marking a substantial reduction in profitability.
- Asset Base Evolution
- The segment's asset base grew consistently from 627 million USD in 2019 to a peak of 862 million USD in 2022. Although a contraction to 782 million USD occurred in 2023, the asset level remained significantly higher than 2019 levels, indicating that the capacity or investment in the segment did not decrease in tandem with the decline in earnings.
- Segment Return on Assets (ROA) Trends
- ROA exhibited a volatile but strong performance between 2019 and 2021, maintaining levels above 20%. A deterioration began in 2022 with a drop to 17.75%, culminating in a severe decline to 6.39% in 2023. This trend reflects a sharp decrease in asset utilization efficiency, where the segment's ability to convert its asset base into net income diminished significantly over the final two years of the analyzed period.
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Segment Asset Turnover
Corning Inc., asset turnover by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 1.24 | 1.52 | 1.37 | 1.24 | 1.35 |
| Display Technologies | 0.45 | 0.41 | 0.44 | 0.36 | 0.36 |
| Specialty Materials | 0.75 | 0.83 | 0.87 | 0.74 | 0.66 |
| Environmental Technologies | 0.94 | 0.77 | 0.74 | 0.69 | 0.78 |
| Life Sciences | 1.23 | 1.42 | 1.56 | 1.46 | 1.62 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The asset turnover ratios across the reportable segments demonstrate divergent trends in asset utilization efficiency from 2019 through 2023. While some segments show improved capability to generate revenue from their asset base, others exhibit a notable decline in efficiency over the five-year period.
- Optical Communications
- Asset turnover exhibited significant volatility, reaching a peak of 1.52 in 2022 before retreating to 1.24 in 2023, a level consistent with the low observed in 2020.
- Display Technologies
- This segment consistently maintains the lowest asset turnover ratios among all reportable segments. However, a gradual upward trend is observed, with the ratio increasing from 0.36 in 2019 and 2020 to 0.45 by 2023.
- Specialty Materials
- An initial period of growth occurred between 2019 and 2021, with the ratio rising from 0.66 to a peak of 0.87. This was followed by a gradual decline, ending at 0.75 in 2023.
- Environmental Technologies
- A positive trajectory is evident, particularly in the most recent period. Following a decrease to 0.69 in 2020, the ratio increased steadily to reach a five-year high of 0.94 in 2023.
- Life Sciences
- A general downward trend in asset efficiency is observed. Despite a temporary recovery to 1.56 in 2021, the ratio fell from a high of 1.62 in 2019 to a period low of 1.23 in 2023.
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Segment Asset Turnover: Optical Communications
Corning Inc.; Optical Communications; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 4,012) | 5,023) | 4,349) | 3,563) | 4,064) |
| Assets | 3,241) | 3,295) | 3,183) | 2,868) | 3,004) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.24 | 1.52 | 1.37 | 1.24 | 1.35 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Net sales ÷ Assets
= 4,012 ÷ 3,241 = 1.24
The Optical Communications segment exhibited significant volatility in asset utilization and revenue generation between 2019 and 2023, characterized by a period of expansion peaking in 2022 followed by a contraction in 2023.
- Net Sales Performance
- Revenue demonstrated a fluctuating trajectory, starting at 4,064 million USD in 2019 and declining to 3,563 million USD in 2020. A strong recovery followed, with sales increasing for two consecutive years to reach a peak of 5,023 million USD in 2022. However, this growth trend reversed in 2023, with net sales falling to 4,012 million USD, returning to levels similar to those observed in 2019.
- Asset Base Stability
- The segment's asset base remained relatively stable compared to the volatility of sales. Assets decreased slightly from 3,004 million USD in 2019 to 2,868 million USD in 2020, then climbed steadily to a peak of 3,295 million USD in 2022. By the end of 2023, assets saw a marginal decrease to 3,241 million USD, indicating that the infrastructure and investment levels did not contract as sharply as the revenue did during the 2023 downturn.
- Segment Asset Turnover Efficiency
- The asset turnover ratio, reflecting the efficiency of asset usage to generate revenue, mirrored the sales trend. The ratio declined from 1.35 in 2019 to 1.24 in 2020. Efficiency improved significantly through 2021 and 2022, reaching a five-year high of 1.52, as sales growth substantially outpaced asset growth. This efficiency gain was lost in 2023, as the ratio dropped back to 1.24, coinciding with the sharp decline in net sales while the asset base remained largely intact.
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Segment Asset Turnover: Display Technologies
Corning Inc.; Display Technologies; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 3,532) | 3,306) | 3,700) | 3,172) | 3,254) |
| Assets | 7,899) | 8,104) | 8,498) | 8,777) | 9,022) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.45 | 0.41 | 0.44 | 0.36 | 0.36 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Net sales ÷ Assets
= 3,532 ÷ 7,899 = 0.45
The Display Technologies segment demonstrates a progressive improvement in asset efficiency over the five-year period from 2019 to 2023. This improvement is characterized by a consistent reduction in the asset base occurring alongside fluctuating but generally resilient net sales figures.
- Net Sales Trends
- Net sales exhibited volatility throughout the analyzed period. After a slight decrease from US$ 3,254 million in 2019 to US$ 3,172 million in 2020, sales reached a peak of US$ 3,700 million in 2021. A subsequent decline to US$ 3,306 million was observed in 2022, followed by a recovery to US$ 3,532 million by the end of 2023.
- Asset Base Optimization
- A steady and uninterrupted downward trend is observed in the segment's assets. Total assets decreased every year, falling from US$ 9,022 million in 2019 to US$ 7,899 million in 2023. This consistent reduction indicates a contraction of the asset base or a strategic divestment/depreciation pattern over the five-year duration.
- Segment Asset Turnover Analysis
- The segment asset turnover ratio improved from 0.36 in 2019 and 2020 to 0.45 in 2023. The most significant increase occurred in 2021, where the ratio rose to 0.44, driven by the simultaneous peak in net sales and the continued reduction of assets. Despite a minor dip to 0.41 in 2022, the ratio reached its highest point in 2023, suggesting that the segment is generating more revenue per unit of asset employed than it was at the start of the period.
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Segment Asset Turnover: Specialty Materials
Corning Inc.; Specialty Materials; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 1,865) | 2,002) | 2,008) | 1,884) | 1,594) |
| Assets | 2,476) | 2,419) | 2,308) | 2,551) | 2,433) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.75 | 0.83 | 0.87 | 0.74 | 0.66 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Net sales ÷ Assets
= 1,865 ÷ 2,476 = 0.75
The Specialty Materials segment exhibited a period of improving asset productivity from 2019 through 2021, followed by a gradual decline in efficiency through 2023. The overall trend indicates a cyclical peak in operational effectiveness during 2021, characterized by the optimal alignment of revenue generation and asset utilization.
- Net Sales Trends
- Revenue demonstrated a growth trajectory between 2019 and 2021, increasing from US$ 1,594 million to a peak of US$ 2,008 million. Following this peak, sales remained relatively stagnant in 2022 before contracting to US$ 1,865 million by December 31, 2023.
- Asset Base Stability
- The asset base remained relatively stable over the five-year period, fluctuating within a range of US$ 2,308 million to US$ 2,551 million. A notable reduction in assets occurred in 2021, coinciding with the segment's peak turnover ratio, while assets trended upward again in 2022 and 2023.
- Segment Asset Turnover Analysis
- The asset turnover ratio improved significantly from 0.66 in 2019 to 0.87 in 2021, reflecting an increased ability to generate sales per dollar of assets. This peak was the result of simultaneous revenue growth and a reduction in the total asset base. However, the ratio subsequently declined to 0.83 in 2022 and further to 0.75 in 2023, driven by the combination of decreasing net sales and a growing asset base.
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Segment Asset Turnover: Environmental Technologies
Corning Inc.; Environmental Technologies; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 1,766) | 1,584) | 1,586) | 1,370) | 1,499) |
| Assets | 1,873) | 2,061) | 2,150) | 1,986) | 1,912) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.94 | 0.77 | 0.74 | 0.69 | 0.78 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Net sales ÷ Assets
= 1,766 ÷ 1,873 = 0.94
The Environmental Technologies segment exhibited a notable recovery in asset utilization efficiency between 2019 and 2023. After an initial decline in productivity, the segment achieved a significant increase in its ability to generate revenue from its asset base by the end of the analyzed period.
- Net Sales Performance
- Revenue experienced a contraction in 2020, falling to 1,370 million US dollars from 1,499 million US dollars in 2019. However, a consistent upward trajectory followed, with sales increasing to 1,586 million US dollars in 2021 and reaching a peak of 1,766 million US dollars by December 31, 2023. This represents an overall growth in top-line performance despite the early volatility.
- Asset Base Evolution
- Total assets grew steadily from 1,912 million US dollars in 2019 to a peak of 2,150 million US dollars in 2021. Following this peak, a contraction in the asset base occurred, with values decreasing to 2,061 million US dollars in 2022 and further declining to 1,873 million US dollars in 2023. The final asset level in 2023 ended slightly below the 2019 starting point.
- Segment Asset Turnover Analysis
- The asset turnover ratio followed a V-shaped recovery pattern. The ratio declined from 0.78 in 2019 to a period low of 0.69 in 2020, coinciding with the drop in net sales and an increase in assets. A gradual recovery ensued through 2021 (0.74) and 2022 (0.77), culminating in a sharp increase to 0.94 in 2023. This final surge was driven by the simultaneous effect of increasing net sales and a reduced asset base.
The significant improvement in the asset turnover ratio to 0.94 in 2023 indicates a marked increase in operational efficiency. The segment has successfully optimized its cost structure or asset deployment, generating higher sales volumes with fewer assets than in previous years.
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Segment Asset Turnover: Life Sciences
Corning Inc.; Life Sciences; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 959) | 1,228) | 1,234) | 998) | 1,015) |
| Assets | 782) | 862) | 791) | 683) | 627) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.23 | 1.42 | 1.56 | 1.46 | 1.62 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment asset turnover = Net sales ÷ Assets
= 959 ÷ 782 = 1.23
The Life Sciences segment exhibits a general deterioration in asset utilization efficiency from 2019 through 2023, characterized by a decline in the segment asset turnover ratio from 1.62 to 1.23.
- Revenue Trajectory
- Net sales demonstrated volatility over the analyzed period, starting at 1,015 million US dollars in 2019 and reaching a peak of 1,234 million US dollars in 2021. Following this peak, a contraction occurred, with sales falling to 959 million US dollars by December 31, 2023, which is below the initial 2019 levels.
- Asset Base Expansion
- The asset base grew consistently between 2019 and 2022, increasing from 627 million US dollars to a maximum of 862 million US dollars. This suggests a period of sustained investment in the segment's infrastructure or capacity. A moderate reduction to 782 million US dollars was recorded in 2023.
- Asset Turnover Performance
- The asset turnover ratio reflects a decrease in the segment's ability to generate revenue relative to its asset base. Although a temporary recovery to 1.56 was observed in 2021, coinciding with the peak in net sales, the ratio subsequently declined to 1.42 in 2022 and reached a five-year low of 1.23 in 2023. This trend indicates that the expansion of assets between 2019 and 2022 outpaced revenue growth, and the sharp decline in sales in 2023 further compressed the efficiency of the asset base.
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Segment Capital Expenditures to Depreciation
Corning Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 0.67 | 1.48 | 1.34 | 0.52 | 1.39 |
| Display Technologies | 0.75 | 0.90 | 1.17 | 0.57 | 1.50 |
| Specialty Materials | 1.17 | 1.97 | 1.14 | 0.77 | 1.21 |
| Environmental Technologies | 0.24 | 0.86 | 1.64 | 1.20 | 2.24 |
| Life Sciences | 0.59 | 1.93 | 2.46 | 1.66 | 1.63 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The capital expenditure to depreciation ratios across the reportable segments demonstrate significant volatility and a general trend toward reduced investment relative to asset depreciation by the end of the analyzed period. While several segments maintained expansionary postures (ratios above 1.0) for much of the five-year window, a systemic decline in investment intensity is evident across almost all business units in 2023.
- Optical Communications
- Investment patterns in this segment were characterized by instability. A significant contraction occurred in 2020, where the ratio dropped to 0.52, followed by a recovery and peak of 1.48 in 2022. However, this was followed by another sharp decline to 0.67 in 2023, indicating a shift from expansion back to a maintenance-heavy posture.
- Display Technologies
- A consistent long-term downward trajectory is observed. Starting at 1.50 in 2019, the ratio decreased to 0.75 by 2023. This persistent decline suggests a strategic move away from capacity expansion toward the utilization and depreciation of existing assets.
- Specialty Materials
- This segment displayed the most resilience in maintaining an expansionary trend. Despite a dip in 2020 (0.77), the ratio grew significantly to a peak of 1.97 in 2022. The 2023 ratio of 1.17 remains above unity, suggesting that investment continues to outpace depreciation.
- Environmental Technologies
- The most severe contraction in investment intensity occurred within this segment. From a high of 2.24 in 2019, the ratio declined precipitously to 0.24 in 2023. This represents a substantial transition from aggressive capital reinvestment to minimal expenditure.
- Life Sciences
- This segment experienced a period of aggressive capital allocation through 2022, reaching a five-year peak of 2.46 in 2021. This expansionary phase ended abruptly in 2023, with the ratio falling to 0.59, marking a sharp reversal in investment strategy.
Overall, the figures indicate that 2020 served as a temporary point of contraction for most segments, followed by a period of reinvestment between 2021 and 2022. However, the comprehensive drop in ratios across nearly all segments in 2023 suggests a broader corporate shift toward capital preservation or a reduction in large-scale capacity projects.
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Segment Capital Expenditures to Depreciation: Optical Communications
Corning Inc.; Optical Communications; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 176) | 368) | 301) | 127) | 329) |
| Depreciation | 263) | 249) | 224) | 242) | 237) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.67 | 1.48 | 1.34 | 0.52 | 1.39 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 176 ÷ 263 = 0.67
The Optical Communications segment exhibits significant volatility in capital investment patterns between 2019 and 2023. While depreciation expenses have remained relatively stable, capital expenditures have fluctuated sharply, leading to a non-linear trend in the segment capital expenditures to depreciation ratio.
- Capital Expenditure Trends
- Capital expenditures demonstrate a cyclical pattern, characterized by two distinct periods of contraction. A sharp decline occurred in 2020, where spending dropped to 127 million USD from 329 million USD in 2019. This was followed by a recovery and peak in 2022 at 368 million USD, before another significant reduction to 176 million USD in 2023.
- Depreciation Stability
- Depreciation expenses show a consistent trend, fluctuating within a narrow range between 224 million USD and 263 million USD. A gradual increase is observed from 2021 through 2023, suggesting a steady accumulation of the depreciable asset base despite the volatility in new capital outlays.
- Capital Expenditures to Depreciation Ratio Analysis
- The ratio indicates alternating phases of expansion and capital conservation. In 2019, 2021, and 2022, the ratio exceeded 1.0, peaking at 1.48 in 2022, which signifies that the segment invested in new assets at a rate faster than the depreciation of existing ones. Conversely, the ratio fell below 1.0 in 2020 (0.52) and 2023 (0.67), indicating periods where capital spending was insufficient to cover the depreciation of the asset base, typically associated with a focus on cost reduction or a temporary pause in growth initiatives.
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Segment Capital Expenditures to Depreciation: Display Technologies
Corning Inc.; Display Technologies; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 363) | 495) | 710) | 311) | 872) |
| Depreciation | 481) | 547) | 605) | 548) | 583) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.75 | 0.90 | 1.17 | 0.57 | 1.50 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 363 ÷ 481 = 0.75
The Display Technologies segment exhibits significant volatility in its capital investment strategy relative to asset depreciation between 2019 and 2023. The segment transitioned from a period of aggressive expansion to a more conservative expenditure profile, with capital spending frequently falling below the level of annual depreciation.
- Capital Expenditure Trends
- Investment levels peaked in 2019 at 872 million US$, followed by a sharp decline to 311 million US$ in 2020. While a recovery occurred in 2021 with spending rising to 710 million US$, a consistent downward trajectory followed, ending at 363 million US$ in 2023. This pattern indicates a shift away from heavy capital intensity over the five-year period.
- Depreciation Stability
- Annual depreciation remained relatively stable compared to capital expenditures, fluctuating between a high of 605 million US$ in 2021 and a low of 481 million US$ in 2023. The gradual decline in depreciation toward the end of the period suggests a shrinking asset base or the aging of significant capital assets without equivalent replacement.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio demonstrates a fluctuating relationship between reinvestment and asset consumption. In 2019 and 2021, the ratio exceeded 1.0, reaching 1.50 and 1.17 respectively, signaling periods where the segment invested in growth or significant capacity upgrades. Conversely, in 2020, 2022, and 2023, the ratio remained below 1.0, dropping to a low of 0.57 in 2020 and ending at 0.75 in 2023. These figures indicate that in these years, capital expenditures were insufficient to fully cover the depreciation of existing assets, which is typically characteristic of a maintenance-focused or contracting phase of the asset lifecycle.
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Segment Capital Expenditures to Depreciation: Specialty Materials
Corning Inc.; Specialty Materials; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 175) | 306) | 183) | 125) | 176) |
| Depreciation | 149) | 155) | 161) | 162) | 145) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.17 | 1.97 | 1.14 | 0.77 | 1.21 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 175 ÷ 149 = 1.17
The Specialty Materials segment exhibits significant volatility in capital expenditures relative to a stable depreciation base, resulting in a fluctuating capital expenditures to depreciation ratio over the five-year period from 2019 to 2023.
- Capital Expenditure Volatility
- Annual capital expenditures showed substantial variance, starting at 176 million USD in 2019, dipping to a period low of 125 million USD in 2020, and reaching a peak of 306 million USD in 2022. By 2023, spending moderated to 175 million USD, returning to levels nearly identical to the 2019 baseline.
- Depreciation Consistency
- Depreciation expenses remained relatively constant throughout the analyzed period, ranging between a minimum of 145 million USD and a maximum of 162 million USD. This stability indicates a consistent rate of asset consumption and a steady baseline of existing infrastructure within the segment.
- Investment-to-Depreciation Ratio Analysis
- The ratio fluctuated between 0.77 in 2020 and 1.97 in 2022. The dip below 1.0 in 2020 signifies a year where capital investment was lower than the depreciation of existing assets, suggesting a temporary reduction in growth spending or a focus on capital preservation. The peak of 1.97 in 2022 reflects an aggressive investment phase, where capital expenditures nearly doubled the depreciation expense, likely indicating significant capacity expansion or technological upgrades. The 2023 ratio of 1.17 suggests a return to a normalized investment posture where spending slightly exceeds asset depreciation.
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Segment Capital Expenditures to Depreciation: Environmental Technologies
Corning Inc.; Environmental Technologies; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 31) | 110) | 228) | 159) | 287) |
| Depreciation | 129) | 128) | 139) | 132) | 128) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.24 | 0.86 | 1.64 | 1.20 | 2.24 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 31 ÷ 129 = 0.24
An analysis of the Environmental Technologies segment reveals a significant reduction in capital investment relative to the consumption of existing assets over the five-year period from 2019 to 2023. While asset depreciation has remained remarkably stable, capital expenditures have declined sharply, leading to a marked decrease in the segment's reinvestment rate.
- Capital Expenditures
- Investment levels exhibited high volatility with a strong overall downward trajectory. Expenditures peaked in 2019 at 287 million USD and reached a period low of 31 million USD by 2023, representing a decrease of approximately 89% over the analyzed timeframe.
- Depreciation
- Depreciation expenses remained consistent, fluctuating within a narrow range between 128 million USD and 139 million USD. This stability indicates a constant rate of asset aging and consumption, regardless of the fluctuations in new capital spending.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio transitioned from a growth posture to a contraction posture. From 2019 to 2021, the ratio remained above 1.0, peaking at 2.24, which signifies that the segment was investing in new assets at a rate exceeding the depreciation of old ones. However, a pivot occurred in 2022 as the ratio fell to 0.86, further accelerating to 0.24 in 2023. This trend indicates that recent investments are insufficient to replace the book value of assets being depreciated, suggesting a shift toward capital preservation or a reduction in the long-term scaling of the segment.
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Segment Capital Expenditures to Depreciation: Life Sciences
Corning Inc.; Life Sciences; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 41) | 116) | 128) | 83) | 80) |
| Depreciation | 69) | 60) | 52) | 50) | 49) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.59 | 1.93 | 2.46 | 1.66 | 1.63 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 41 ÷ 69 = 0.59
The financial trajectory of the Life Sciences segment from 2019 to 2023 is characterized by a period of aggressive asset expansion followed by a sharp reduction in capital investment. Through 2022, the segment consistently reinvested at levels exceeding its annual depreciation, suggesting a strategy of growth and capacity expansion. However, the 2023 fiscal year marks a significant pivot toward a maintenance or contraction phase.
- Capital Expenditure Trends
- Capital expenditures remained relatively stable between 2019 and 2020 before surging to a peak of US$ 128 million in 2021. Following a slight decline in 2022 to US$ 116 million, investment plummeted to US$ 41 million in 2023, representing a significant decrease in asset acquisition activity.
- Depreciation Growth
- Depreciation exhibited a consistent upward trajectory throughout the analyzed period, rising steadily from US$ 49 million in 2019 to US$ 69 million in 2023. This linear increase reflects the ongoing cost allocation of the expanded asset base acquired during the high-investment years of 2021 and 2022.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio served as a primary indicator of investment intensity, peaking at 2.46 in 2021. For the first four years of the period, the ratio remained above 1.0, indicating that the segment was adding new assets faster than existing assets were being depreciated. In 2023, this ratio dropped precipitously to 0.59, signaling that capital spending fell well below the level of annual depreciation, which typically suggests a shift from expansion to asset preservation or a strategic reduction in capital commitment.
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Net sales
Corning Inc., net sales by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 4,012) | 5,023) | 4,349) | 3,563) | 4,064) |
| Display Technologies | 3,532) | 3,306) | 3,700) | 3,172) | 3,254) |
| Specialty Materials | 1,865) | 2,002) | 2,008) | 1,884) | 1,594) |
| Environmental Technologies | 1,766) | 1,584) | 1,586) | 1,370) | 1,499) |
| Life Sciences | 959) | 1,228) | 1,234) | 998) | 1,015) |
| Hemlock and Emerging Growth Businesses | 1,446) | 1,662) | 1,243) | 465) | 230) |
| Total | 13,580) | 14,805) | 14,120) | 11,452) | 11,656) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total net sales exhibited a period of significant growth between 2019 and 2022, peaking at 14,805 million US dollars before contracting to 13,580 million US dollars in 2023. This overall trend was primarily driven by rapid expansion in emerging business segments and a substantial surge in optical communications, although the 2023 fiscal year saw a broad reversal in several key segments.
- Optical Communications
- This segment represents the largest portion of total sales but demonstrates the highest volatility. After a decline in 2020, sales surged to a peak of 5,023 million US dollars in 2022. However, a sharp contraction occurred in 2023, with sales falling to 4,012 million US dollars, effectively returning to 2019 levels.
- Hemlock and Emerging Growth Businesses
- The most aggressive growth trajectory is observed in this segment, which increased from 230 million US dollars in 2019 to a peak of 1,662 million US dollars in 2022. Despite a moderate decline to 1,446 million US dollars in 2023, the segment has fundamentally shifted its scale and contribution to total revenue over the five-year period.
- Display Technologies
- Sales in this segment remained relatively stable, fluctuating between 3,172 million US dollars and 3,700 million US dollars. A recovery is noted in 2023, with sales rising to 3,532 million US dollars following a dip in 2022.
- Environmental Technologies
- A consistent upward trend is evident in this segment. Despite a brief decline in 2020, sales grew steadily to reach a five-year high of 1,766 million US dollars in 2023, marking it as one of the few segments to show growth in the final year of the period.
- Specialty Materials and Life Sciences
- Both segments followed a similar pattern of growth peaking between 2021 and 2022, followed by a downturn in 2023. Specialty Materials declined from a peak of 2,008 million US dollars in 2021 to 1,865 million US dollars in 2023. Life Sciences experienced a more pronounced drop, falling from 1,228 million US dollars in 2022 to 959 million US dollars in 2023, the lowest level recorded in the provided timeframe.
The diversification of the revenue stream is highlighted by the emergence of the Hemlock and Emerging Growth Businesses, which mitigated some of the volatility seen in the Optical Communications segment. However, the synchronized decline across multiple segments in 2023 suggests a broad systemic correction in demand across several reportable business units.
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Depreciation
Corning Inc., depreciation by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 263) | 249) | 224) | 242) | 237) |
| Display Technologies | 481) | 547) | 605) | 548) | 583) |
| Specialty Materials | 149) | 155) | 161) | 162) | 145) |
| Environmental Technologies | 129) | 128) | 139) | 132) | 128) |
| Life Sciences | 69) | 60) | 52) | 50) | 49) |
| Hemlock and Emerging Growth Businesses | 144) | 146) | 134) | 81) | 50) |
| Total | 1,235) | 1,285) | 1,315) | 1,215) | 1,192) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total depreciation across all reportable segments exhibited a peaked trajectory, rising from 1,192 million US dollars in 2019 to a maximum of 1,315 million US dollars in 2021, before trending downward to 1,235 million US dollars by the end of 2023. This overall movement reflects a shifting capital structure across the various business units.
- Display Technologies
- This segment represented the largest source of depreciation throughout the period, though it experienced a notable overall decline. Depreciation fell from 583 million US dollars in 2019 to 481 million US dollars in 2023. Despite a temporary increase to 605 million US dollars in 2021, the subsequent downward trend suggests a reduction in the book value of depreciable assets or a shift in the asset lifecycle within this segment.
- Hemlock and Emerging Growth Businesses
- The most significant relative growth in depreciation is observed in this segment, which surged from 50 million US dollars in 2019 to 144 million US dollars in 2023. The sharp increase between 2020 and 2022 indicates substantial capital investments in infrastructure and equipment that entered the depreciation phase during this window.
- Optical Communications and Life Sciences
- Both segments demonstrate a consistent upward trend in depreciation expenses. Optical Communications grew from 237 million US dollars in 2019 to 263 million US dollars in 2023. Life Sciences, while smaller in absolute terms, showed a steady climb from 49 million US dollars to 69 million US dollars over the same five-year period, indicating sustained investment in these growth areas.
- Specialty Materials and Environmental Technologies
- These segments remained relatively stable. Specialty Materials peaked at 162 million US dollars in 2020 before returning to 149 million US dollars by 2023. Environmental Technologies maintained a tight range, fluctuating minimally between 128 million and 139 million US dollars, suggesting a steady-state asset base with limited new large-scale capital additions.
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Net income
Corning Inc., net income by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 478) | 661) | 553) | 366) | 489) |
| Display Technologies | 842) | 769) | 960) | 717) | 786) |
| Specialty Materials | 202) | 340) | 371) | 423) | 302) |
| Environmental Technologies | 386) | 292) | 269) | 197) | 263) |
| Life Sciences | 50) | 153) | 194) | 139) | 150) |
| Hemlock and Emerging Growth Businesses | 15) | 39) | (51) | (214) | (289) |
| Total | 1,973) | 2,254) | 2,296) | 1,628) | 1,701) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total net income experienced a period of growth between 2019 and 2021, peaking at 2,296 million US dollars, followed by a moderate decline to 1,973 million US dollars by the end of 2023. This overall trajectory was driven by varied performance across the reportable segments, with some showing cyclicality and others demonstrating long-term recovery or growth.
- Core Segment Performance
- Display Technologies consistently served as the largest contributor to total net income, reaching a peak of 960 million US dollars in 2021 before stabilizing at 842 million US dollars in 2023. Optical Communications exhibited higher volatility, with a significant dip in 2020 to 366 million US dollars, a recovery to 661 million US dollars in 2022, and a subsequent decrease to 478 million US dollars in 2023.
- Growth and Turnaround Trends
- Environmental Technologies demonstrated a consistent upward trajectory, increasing from 263 million US dollars in 2019 to 386 million US dollars in 2023, representing steady growth over the five-year period. Notably, the Hemlock and Emerging Growth Businesses segment transitioned from a significant deficit of -289 million US dollars in 2019 to positive contributions in 2022 and 2023, indicating a successful turnaround in profitability for this division.
- Declining Segments
- Specialty Materials showed a downward trend in the latter half of the period, falling from a 2020 peak of 423 million US dollars to 202 million US dollars in 2023. Similarly, Life Sciences experienced a sharp contraction in net income, dropping from 194 million US dollars in 2021 to 50 million US dollars in 2023.
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Assets
Corning Inc., assets by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 3,241) | 3,295) | 3,183) | 2,868) | 3,004) |
| Display Technologies | 7,899) | 8,104) | 8,498) | 8,777) | 9,022) |
| Specialty Materials | 2,476) | 2,419) | 2,308) | 2,551) | 2,433) |
| Environmental Technologies | 1,873) | 2,061) | 2,150) | 1,986) | 1,912) |
| Life Sciences | 782) | 862) | 791) | 683) | 627) |
| Hemlock and Emerging Growth Businesses | 2,307) | 2,136) | 2,024) | 2,157) | 891) |
| Total | 18,578) | 18,877) | 18,954) | 19,022) | 17,889) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total assets reached a peak of 19,022 million US dollars in 2020 before entering a period of gradual decline, ending at 18,578 million US dollars in 2023. This overall trajectory is characterized by a significant reallocation of capital, where losses in the largest segment are partially offset by aggressive growth in emerging business areas.
- Display Technologies
- A continuous downward trend is evident in this segment, which remains the largest component of the asset base. Assets decreased every year from 9,022 million US dollars in 2019 to 7,899 million US dollars in 2023, representing a total reduction of approximately 12.5% over the five-year period.
- Hemlock and Emerging Growth Businesses
- This segment exhibited the most significant growth. A substantial increase occurred between 2019 and 2020, where assets rose from 891 million US dollars to 2,157 million US dollars. This upward momentum continued through 2023, reaching 2,307 million US dollars, indicating a strategic expansion of the asset base in this area.
- Optical Communications
- Assets in this segment remained relatively stable with a slight net increase. After a minor dip in 2020, the asset value grew to a peak of 3,295 million US dollars in 2022, before settling at 3,241 million US dollars in 2023.
- Life Sciences
- A period of sustained growth was observed from 2019 through 2022, with assets rising from 627 million US dollars to 862 million US dollars. A slight contraction occurred in 2023, with values decreasing to 782 million US dollars.
- Environmental Technologies and Specialty Materials
- Specialty Materials maintained a consistent asset level, fluctuating narrowly between 2,308 million and 2,551 million US dollars. Environmental Technologies showed a cyclical pattern, peaking at 2,150 million US dollars in 2021 before declining to ,1873 million US dollars in 2023, returning to levels slightly below the 2019 starting point.
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Capital expenditures
Corning Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Optical Communications | 176) | 368) | 301) | 127) | 329) |
| Display Technologies | 363) | 495) | 710) | 311) | 872) |
| Specialty Materials | 175) | 306) | 183) | 125) | 176) |
| Environmental Technologies | 31) | 110) | 228) | 159) | 287) |
| Life Sciences | 41) | 116) | 128) | 83) | 80) |
| Hemlock and Emerging Growth Businesses | 303) | 218) | 149) | 123) | 155) |
| Total | 1,089) | 1,613) | 1,699) | 928) | 1,899) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total capital expenditures across all reportable segments exhibited significant volatility between 2019 and 2023. A sharp contraction occurred in 2020, followed by a recovery period in 2021 and 2022, and a subsequent reduction in 2023, where total expenditures decreased to 1,089 million USD from a 2019 baseline of 1,899 million USD.
- Display Technologies
- This segment historically required the highest level of capital investment. While expenditures recovered to 710 million USD in 2021 following the 2020 dip, a consistent downward trend has been observed since then, falling to 363 million USD by the end of 2023.
- Hemlock and Emerging Growth Businesses
- This is the only segment demonstrating a sustained upward trajectory in capital allocation. Expenditures grew steadily from 123 million USD in 2020 to 303 million USD in 2023, reflecting a strategic shift in investment priority toward emerging growth areas.
- Environmental Technologies
- A severe and consistent disinvestment trend is evident in this segment. Capital expenditures declined from 287 million USD in 2019 to just 31 million USD in 2023, representing the most significant proportional reduction across all segments.
- Optical Communications and Specialty Materials
- Both segments exhibited similar volatility patterns, characterized by a peak in 2022. Optical Communications reached 368 million USD and Specialty Materials reached 306 million USD in 2022, before both experienced sharp declines in 2023 to 176 million USD and 175 million USD, respectively.
- Life Sciences
- Investment in this segment remained relatively stable between 2019 and 2022, peaking at 128 million USD in 2021. However, a significant reduction occurred in 2023, with expenditures dropping to 41 million USD.
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