Corning 2007 Annual Report

Life Sciences
The following table provides net sales and other data for the Life Sciences segment (dollars in millions):
2007 2006 2005
% Change
07 vs. 06 06 vs. 05
Net sales $ 307 $ 287 $ 282 7 2
Net loss $ (4) $ (17) $ (4) (76) 325
2007 vs. 2006
Net sales of the Life Sciences segment were up when compared to last year driven by market growth and higher prices. Government
and private spending for drug development, discovery, and production, continue to drive market growth in this segment. Movements
in foreign exchange rates did not have a significant impact on the comparability of sales for the periods presented.
Improved profitability of this segment in 2007 resulted from higher sales, movements in foreign exchange rates, manufacturing
efficiencies, and the absence of restructuring charges. Segment profitability in all years was impacted by development spending for
new products. Movements in foreign exchange rates had a $4 million favorable impact on results of this segment for 2007 when
compared with 2006.
In the Life Sciences segment, one customer accounted for approximately 44% of this segment’s net sales in 2007.
2006 vs. 2005
Net sales of the Life Sciences segment were up slightly in 2006 when compared to 2005 due to increased prices offset by volume
declines in the U.S. Movements in foreign exchange rates did not have a significant impact on the comparability of sales.
The segment operated at a loss due to significant research, development, and engineering spending related to the Epic ® System, a
high-throughput label-free screening platform based on optical biosensor technology, which had its market launch in 2006. The
segment loss also includes $5 million of severance, curtailment, and asset impairment costs related to the shutdown of a facility in the
United Kingdom.
Outlook:
Sales for 2008 are expected to increase over 2007 driven by market growth, price increases, and sales of Epic ® System products. We
expect sales in the first quarter of 2008 to be up slightly versus the fourth quarter of 2007.
All Other
The following table provides net sales and other data (dollars in millions):
2007 2006 2005
% Change
07 vs. 06 06 vs. 05
Other businesses net sales $ 404 $ 410 $ 352 (1) 16
Net income (loss) $ (20) $ 47 $ (66) (143) (171)
All Other includes all other operating segments that do not meet the quantitative threshold for separate reporting.
Sales in this segment for 2007 were lower than 2006 due to a decline in sales of the Specialty Materials business. Sales in 2006
reflected stronger sales of the Specialty Materials business when compared to 2005. Net income for each period presented reflected
the impact of impairment and other charges and credits recorded by Samsung Corning Co. Ltd. In 2007, 2006, and 2005, Corning’s
share of these items was a charge of $40 million, a credit of $2 million, and a charge of $106 million, respectively. Refer to Note 7
(Investments) to the consolidated financial statements for additional information.
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