New York

1-3247

16-0393470

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification No.)

One Riverfront Plaza, Corning, New York

14831

(Address of principal executive offices)

(Zip Code)

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

(d)

Exhibit

99

Press Release dated January 28, 2008, issued by Corning Incorporated.

- 2 -

CORNING INCORPORATED

Registrant

Date: January 28, 2008

By /s/

KATHERINE A. ASBECK

Katherine A. Asbeck

Senior Vice President - Finance

- 3 -

Media Relations Contact:

Additional Contact:

Daniel F. Collins

Kenneth C. Sofio

(607) 974-4197

(607) 974-7705

collinsdf@corning.com

sofiokc@corning.com

•

Sales reached $1.58 billion, up 16% year over year.

•

Earnings per share were $0.45. Excluding special items, earnings per share were $0.40.*

•

Display Technologies glass volume increased 31% and Samsung Corning Precision Glass Co. Ltd.’s volume increased 38% year over year. Both had volume increases of more than 6% over the third quarter.

•

Telecommunications sales increased 6% year over year and, as expected, declined 9% sequentially. Year-over-year growth was 16%*, excluding the impact of the divestiture of the company’s submarine cabling business in the second quarter.

•

Sales are expected in the range of $1.59 billion to $1.62 billion, up more than 20% compared to first quarter last year.

•

Earnings per share, excluding special items, are expected in the range of $0.41 to $0.43*, about 50% higher than last year’s first quarter.

•

Display LCD glass volume is expected to remain strong throughout the quarter, and increase about 45% year over year.

•

Sales increased 13% to $5.86 billion.

•

Net income was $2.15 billion, or $1.34 per share. Excluding special items, net income was $2.26 billion* or $1.41 per share*, a 27% increase over 2006.

•

Display Technologies glass volume increased 38% year over year, and pricing declined only 11%. Volume at Samsung Corning Precision increased 39%, with pricing down 15%.

•

Environmental Technologies sales increased 23% year over year to $757 million, with diesel product sales increasing more than 50%.

(more)

- 4 -

Q4 2007

Q3 2007

% Change

Q4 2006

% Change

Net Sales in millions

$

1,582

$

1,553

2%

$

1,369

16%

Net Income in millions

$

717

$

617

16%  

$

646

11%

GAAP EPS

$

0.45

$

0.38

18%  

$

0.41

10%

Non-GAAP EPS*

$

0.40

$

0.38

5%

$

0.31

29%

2007

2006

% Change

Net Sales in millions

$

5,860

$

5,174

13%

Net Income in millions

$

2,150

$

1,855

16%

GAAP EPS

$

1.34

$

1.16

16%

Non-GAAP EPS*

$

1.41

$

1.12

26%

(more)

- 5 -

•

First-quarter sales volume in the Display Technologies segment is expected to be consistent with the fourth quarter as both Corning and Samsung Corning Precision are expected to run at full capacity. Corning anticipates continued moderate sequential price declines. First-quarter sales are also expected to benefit from a lower Japanese-yen-to-U.S.-dollar exchange rate.

•

Corning’s Telecommunications segment sales are expected to increase about 5% sequentially.

•

Environmental Technologies segment sales are expected to increase about 5% sequentially due to strength in the European and Asian auto market and improved heavy-duty diesel product sales.

•

Sales in the Life Sciences segment are expected to be up slightly.

•

Equity earnings from Dow Corning Corporation are expected to decline 5% to 10% sequentially.

(more)

- 6 -

(more)

- 8 -

- 9 -

Three months ended
December 31,

Year ended
December 31,

2007

2006

2007

2006

Net sales

$

1,582 

$

1,369 

$

5,860 

$

5,174 

Cost of sales

825 

766 

3,111 

2,891 

Gross margin

757 

603 

2,749 

2,283 

Operating expenses:

Selling, general and administrative expense

257 

222 

912 

857 

Research, development and engineering expenses

153 

138 

565 

517 

Amortization of purchased intangibles

3 

3 

10 

11 

Restructuring, impairment and other (credits) and charges

(2)

41 

(4)

54 

Asbestos settlement charge (credit) (Note 1)

15 

(139)

185 

(2)

Operating income

331 

338 

1,081 

846 

Interest income

35 

36 

145 

118 

Interest expense

(20)

(20)

(82)

(76)

Loss on repurchases and retirement of debt, net

(15)

(11)

Other income, net

44 

23 

162 

84 

Income before income taxes

390 

377 

1,291 

961 

Benefit (provision) for income taxes (Note 2)

61 

(80)

(55)

Income before minority interest and equity earnings

451 

377 

1,211 

906 

Minority interests

(1)

(3)

(3)

(11)

Equity in earnings of affiliated companies, net of impairments (Note 3)

267 

272 

942 

960 

Net income

$

717 

$

646 

$

2,150 

$

1,855 

Basic earnings per common share (Note 4)

$

0.46 

$

0.42 

$

1.37 

$

1.20 

Diluted earnings per common share (Note 4)

$

0.45 

$

0.41 

$

1.34 

$

1.16 

Dividends declared per common share

$

0.05 

$

0.10 

- 10 -

December 31,

2007

2006

Assets

Current assets:

Cash and cash equivalents

$

2,216 

$

1,157 

Short-term investments, at fair value

1,300 

2,010 

Total cash, cash equivalents and short-term investments

3,516 

3,167 

Trade accounts receivable, net

856 

719 

Inventories

631 

639 

Deferred income taxes

54 

47 

Other current assets

237 

226 

Total current assets

5,294 

4,798 

Investments

3,036 

2,522 

Property, net of accumulated depreciation

5,986 

5,193 

Goodwill and other intangible assets, net

308 

316 

Deferred income taxes

202 

114 

Other assets

389 

122 

Total Assets

$

15,215 

$

13,065 

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of long-term debt

$

23 

$

20 

Accounts payable

609 

631 

Other accrued liabilities

1,880 

1,668 

Total current liabilities

2,512 

2,319 

Long-term debt

1,514 

1,696 

Postretirement benefits other than pensions

744 

739 

Other liabilities

903 

1,020 

Total liabilities

5,673 

5,774 

Commitments and contingencies

Minority interests

46 

45 

Shareholders’ equity:

Common stock – Par value $0.50 per share; Shares authorized: 3.8 billion; Shares issued: 1,598 million and 1,582 million

799 

791 

Additional paid-in capital

12,281 

12,008 

Accumulated deficit

(3,002)

(4,992)

Treasury stock, at cost; Shares held: 30 million and 17 million

(492)

(201)

Accumulated other comprehensive loss

(90)

(360)

Total shareholders’ equity

9,496 

7,246 

Total Liabilities and Shareholders’ Equity

$

15,215 

$

13,065 

- 11 -

Three months ended

Year ended
December 31,

Dec. 31,
2007

Sept. 30,
2007

2007

2006

Cash Flows from Operating Activities:

Net income

$

717 

$

617 

$

2,150 

$

1,855 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

151 

147 

597 

580 

Amortization of purchased intangibles

3 

2 

10 

11 

Asbestos settlement

15 

(16)

185 

(2)

Restructuring, impairment and other (credits) charges

(2)

(4)

54 

Loss on repurchases and retirement of debt

15 

11 

Stock compensation charges

38 

29 

138 

127 

Gain on sale of business

(19)

Undistributed earnings of affiliated companies

(125)

(159)

(452)

(597)

Deferred tax (benefit) provision

(116)

18 

(98)

(101)

Restructuring payments

(9)

(10)

(39)

(15)

Customer deposits, net of (credits) issued

(62)

2 

(126)

45 

Employee benefit payments (in excess of) less than expense

(4)

10 

(85)

27 

Changes in certain working capital items:

Trade accounts receivable

29 

(50)

(128)

(105)

Inventories

42 

31 

5 

(65)

Other current assets

(6)

63 

(27)

(10)

Accounts payable and other current liabilities, net of restructuring payments

134 

3 

10 

(85)

Other, net

(73)

(10)

(55)

73 

Net cash provided by operating activities

732 

677

2,077

1,803 

Cash Flows from Investing Activities:

Capital expenditures

(391)

(405)

(1,262)

(1,182)

Acquisitions of businesses, net of cash received

(4)

(16)

Net proceeds (payments) from sale or disposal of assets

5

(5)

12 

Net increase in long-term investments and other long-term assets

(77)

Short-term investments – acquisitions

(570)

(633)

(2,152)

(2,894)

Short-term investments – liquidations

721 

511 

2,862 

1,976 

Net cash used in investing activities

(235)

(527)

(561)

(2,181)

Cash Flows from Financing Activities:

Net repayments of short-term borrowings and current portion of long-term debt

(2)

(8)

(20)

(14)

Proceeds from issuance of long-term debt, net

246 

Retirements of long-term debt

(238)

(368)

Proceeds from issuance of common stock, net

4 

4 

21 

26 

Proceeds from the exercise of stock options

20 

20 

109 

303 

Repurchases of common stock

(125)

(125)

(250)

Dividends paid

(79)

(79)

(158)

Other, net

(1)

(2)

(3)

(13)

Net cash (used in) provided by financing activities

(183)

(190)

(539)

180 

Effect of exchange rates on cash

24 

44 

82 

13 

Net increase (decrease) in cash and cash equivalents

338 

4 

1,059 

(185)

Cash and cash equivalents at beginning of period

1,878 

1,874 

1,157 

1,342 

Cash and cash equivalents at end of period

$

2,216 

$

1,878 

$

2,216 

$

1,157 

- 12 -

Display
Technologies

Telecom-
munications

Environmental
Technologies

Life
Sciences

All
Other

Total

Three months ended December 31, 2007

Net sales

$

774 

$

430 

$

189 

$

75 

$

114 

$

1,582 

Depreciation (1)

$

85 

$

29 

$

23 

$

5 

$

9 

$

151 

Amortization of purchased intangibles

$

3 

$

3 

Research, development and engineering expenses (2)

$

36 

$

22 

$

33 

$

16 

$

9 

$

116 

Restructuring, impairment and other credits

$

(2)

$

(2)

Income tax provision

$

(45)

$

(1)

$

(46)

Earnings (loss) before minority interest and equity earnings (loss) (3)

$

403 

$

11 

$

22 

$

(5)

$

1 

$

432 

Minority interests

$

(1)

$

(1)

Equity in earnings (loss) of affiliated companies

$

177 

$

1 

$

1 

$

(4)

$

175 

Net income (loss)

$

580 

$

12 

$

23 

$

(5)

$

(4)

$

606 

Three months ended December 31, 2006

Net sales

$

619 

$

404 

$

155 

$

72 

$

119 

$

1,369 

Depreciation (1)

$

77 

$

36 

$

21 

$

5 

$

8 

$

147 

Amortization of purchased intangibles

$

3 

$

3 

Research, development and engineering expenses (2)

$

30 

$

24 

$

30 

$

12 

$

11 

$

107 

Restructuring, impairment and other charges (3)

$

42 

$

1 

$

43 

Income tax (provision) benefit

$

(45)

$

3 

$

1 

$

1 

$

2 

$

(38)

Earnings (loss) before minority interest and equity earnings (4)

$

311 

$

(53)

$

(8)

$

(2)

$

10 

$

258 

Minority interests

$

(2)

$

(1)

$

(3)

Equity in earnings of affiliated companies (5)

$

150 

$

1 

$

31 

$

182 

Net income (loss)

$

461 

$

(54)

$

(8)

$

(2)

$

40 

$

437 

Year ended December 31, 2007

Net sales

$

2,613 

$

1,779 

$

757 

$

307 

$

404 

$

5,860 

Depreciation (1)

$

326 

$

123 

$

89 

$

19 

$

34 

$

591 

Amortization of purchased intangibles

$

10 

$

10 

Research, development and engineering expenses (2)

$

125 

$

82 

$

126 

$

55 

$

42 

$

430 

Restructuring, impairment and other credits

$

(4)

$

(4)

Income tax provision

$

(135)

$

(44)

$

(18)

$

(1)

$

(198)

Earnings (loss) before minority interest and equity earnings (3)

$

1,404 

$

105 

$

58 

$

(4)

$

(9)

$

1,554 

Minority interests

$

(1)

$

(2)

$

(3)

Equity in earnings (loss) of affiliated companies

$

582 

$

4 

$

2 

$

(9)

$

579 

Net income (loss)

$

1,986 

$

108 

$

60 

$

(4)

$

(20)

$

2,130 

Year ended December 31, 2006

Net sales

$

2,133 

$

1,729 

$

615 

$

287 

$

410 

$

5,174 

Depreciation (1)

$

276 

$

157 

$

80 

$

20 

$

37 

$

570 

Amortization of purchased intangibles

$

11 

$

11 

Research, development and engineering expenses (2)

$

126 

$

82 

$

121 

$

49 

$

36 

$

414 

Restructuring, impairment and other charges (3)

$

44 

$

6 

$

6 

$

56 

Income tax (provision) benefit

$

(117)

$

(27)

$

(5)

$

1 

$

(3)

$

(151)

Earnings (loss) before minority interest and equity earnings (loss) (4)

$

1,052 

$

9 

$

8 

$

(17)

$

12 

$

1,064 

Minority interests

$

(7)

$

(4)

$

(11)

Equity in earnings (loss) of affiliated companies (5)

$

565 

$

5 

$

(1)

$

39 

$

608 

Net income (loss)

$

1,617 

$

7 

$

7 

$

(17)

$

47 

$

1,661 

- 14 -

(1)

Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment.

(2)

Research, development, and engineering expenses includes direct project spending which is identifiable to a segment.

(3)

In the three months and year ended December 31, 2006, restructuring, impairment and other charges and (credits) includes a charge of $44 million for certain assets in our Telecommunications segment.

(4)

Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal are allocated to segments, primarily as a percentage of sales.

(5)

Equity in earnings (loss) of affiliated companies, net of impairments includes the following restructuring and impairment charges:

•

In the three months and year ended December 31, 2007, net charges of $14 million and $40 million, respectively, related to impairments and other charges and credits for Samsung Corning is included in All Other.

•

In the three months and year ended December 31, 2006, net credits of $28 million and $7 million, respectively, related to impairments and other charges and credits for Samsung Corning is included in All Other.

Three months ended
December 31,

Year ended
December 31,

2007

2006

2007

2006

Net income of reportable segments

$

606 

$

437 

$

2,130 

$

1,661 

Unallocated amounts:

Net financing costs (1)

8 

6 

36 

1 

Stock-based compensation expense