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 October 24, 2007, issued by Corning Incorporated.

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CORNING INCORPORATED

Registrant

Date: October 24, 2007

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 $1.55 billion, up 21% year-over-year.

•

Earnings per share (both GAAP and non-GAAP) were $0.38, better than the company’s guidance of $0.34 to $0.37 and significantly better than last year.

•

Display Technologies’ glass volume increased 15% and Samsung Corning Precision’s volume increased 14% compared to quarter two. Price declines in the quarter were in line with previous quarters.

•

Sequentially, telecommunications sales increased 8% (10%* excluding the impact of the divestiture of the company’s submarine cabling business in the second quarter).

•

Sales are expected in the range of $1.50 billion to $1.55 billion.

•

EPS is expected in the range of $0.36 to $0.38 before special items.*

•

Display volume is expected to be up 2% to 5% sequentially, and consistent with the overall glass market growth.

•

Telecommunications sales are expected to decline about 10% sequentially, in line with normal seasonal patterns.

Q3 2007

Q2 2007

% Change

Q3 2006

% Change

Net Sales

in millions

$1,553

$1,418

+10%

$1,282

+21%

Net Income

in millions

$ 617

$ 489

+26%

$ 438

+41%

GAAP EPS

$ 0.38

$ 0.30

+26%

$ 0.27

+41%

Non-GAAP EPS*

$ 0.38

$ 0.34

+12%

$ 0.28

+36%

(more)

- 4 -

•

Sequential LCD volume in both the company’s wholly owned business and at Samsung Corning Precision is expected to increase in the range of 2% to 5%. Corning’s wholly owned business is on track to increase volume 37% to 38% for the full year. To meet this level of demand, the company anticipates running its operations at full capacity in the fourth quarter. Sequential price declines are again expected to be in line with previous quarters. Corning is assuming a U.S.-dollar-to-Japanese-yen exchange rate of 116 for quarter four.

•

Corning’s Telecommunications segment sales are expected to increase about 5% (about 15%* excluding the impact of divestitures) versus the fourth quarter 2006, and are on track to grow about 3% (about 10%* excluding the impact of divestitures) this year.

(more)

- 5 -

•

Environmental Technologies segment sales are expected to decline about 10% sequentially, and increase about 15% versus the fourth quarter 2006.

•

Sales for the Life Sciences segment are expected to decline slightly on a sequential basis and be even with the fourth quarter 2006.

(more)

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- 7 -

Three months
ended September 30,

Nine months
ended September 30,

2007

2006

2007

2006

Net sales

$

1,553 

$

1,282 

$

4,278 

$

3,805 

Cost of sales

811 

716 

2,286 

2,125 

Gross margin

742 

566 

1,992 

1,680 

Operating expenses:

Selling, general and administrative expense

212 

218 

655 

635 

Research, development and engineering expenses

145 

127 

412 

379 

Amortization of purchased intangibles

2 

2 

7 

8 

Restructuring, impairment and other charges and (credits)

2 

(2)

13 

Asbestos settlement (credit) charge (Note 1)

(16)

13 

170 

137 

Operating income

399 

204 

750 

508 

Interest income

38 

32 

110 

82 

Interest expense

(21)

(18)

(62)

(56)

Loss on repurchases and retirement of debt, net

(15)

(11)

Other income, net

29 

27 

118 

61 

Income before income taxes

445 

245 

901 

584 

Provision for income taxes

66 

33 

141 

55 

Income before minority interest and equity earnings

379 

212 

760 

529 

Minority interests

(1)

(6)

(2)

(8)

Equity in earnings of affiliated companies, net of impairments (Note 2)

239 

232 

675 

688 

Net income

$

617 

$

438 

$

1,433 

$

1,209 

Basic earnings per common share (Note 3)

$

0.39

$

0.28 

$

0.91

$

0.78 

Diluted earnings per common share (Note 3)

$

0.38

$

0.27 

$

0.89

$

0.76 

Dividends declared per common share

$

0.05

$

0.05

- 8 -

September 30,
2007

December 31,
2006

Assets

Current assets:

Cash and cash equivalents

$

1,878 

$

1,157 

Short-term investments, at fair value

1,451 

2,010 

Total cash, cash equivalents and short-term investments

3,329 

3,167 

Trade accounts receivable, net

874 

719 

Inventories

665 

639 

Deferred income taxes

37 

47 

Other current assets

221 

226 

Total current assets

5,126 

4,798 

Investments

2,932 

2,522 

Property, net of accumulated depreciation

5,602 

5,193 

Goodwill and other intangible assets, net

311 

316 

Deferred income taxes

92 

114 

Other assets

210 

122 

Total Assets

$

14,273 

$

13,065 

Liabilities and Shareholders’ Equity

Current liabilities:

Current portion of long-term debt

$

21 

$

20 

Accounts payable

495 

631 

Other accrued liabilities

1,739 

1,668 

Total current liabilities

2,255 

2,319 

Long-term debt

1,460 

1,696 

Postretirement benefits other than pensions

714 

739 

Other liabilities

1,002 

1,020 

Total liabilities

5,431 

5,774 

Commitments and contingencies

Minority interests

44 

45 

Shareholders’ equity:

Common stock – Par value $0.50 per share; Shares authorized: 3.8 billion; Shares issued: 1,595 million and 1,582 million

797 

791 

Additional paid-in capital

12,218 

12,008 

Accumulated deficit

(3,641)

(4,992)

Treasury stock, at cost; Shares held: 24 million and 17 million

(363)

(201)

Accumulated other comprehensive loss

(213)

(360)

Total shareholders’ equity

8,798 

7,246 

Total Liabilities and Shareholders’ Equity

$

14,273 

$

13,065 

- 9 -

Three months ended

Nine months ended

Sept. 30,

June 30,

September 30,

2007

2007

2007

2006

Cash Flows from Operating Activities:

Net income

$

617 

$

489 

$

1,433 

$

1,209 

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

Depreciation

147 

149 

446 

430 

Amortization of purchased intangibles

2 

2 

7 

8 

Asbestos settlement (credit) charge

(16)

76 

170 

137 

Restructuring, impairment and other (credits) charges

(2)

(2)

13 

Loss on repurchases and retirement of debt

15 

11 

Stock compensation charges

29 

35 

100 

95 

Gain on sale of business

(19)

(19)

Undistributed earnings of affiliated companies

(159)

(101)

(327)

(384)

Deferred tax provision (benefit)

18 

18 

(64)

Restructuring payments

(10)

(9)

(30)

(9)

Customer deposits, net of (credits) issued

2 

(33)

(64)

86 

Employee benefit payments less than (in excess of) expense

10 

(82)

26 

Changes in certain working capital items:

Trade accounts receivable

(50)

(79)

(157)

(119)

Inventories

31 

(26)

(37)

(104)

Other current assets

63 

(27)

(21)

(10)

Accounts payable and other current liabilities, net of restructuring payments

11 

10 

(100)

(181)

Other, net

(18)

10 

(5)

31 

Net cash provided by operating activities

677 

475 

1,345 

1,175 

Cash Flows from Investing Activities:

Capital expenditures

(405)

(204)

(871)

(892)

Acquisitions of businesses, net of cash received

(4)

(4)

(16)

Net (payments) proceeds from sale or disposal of assets

(10)

(10)

11 

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

(77)

Short-term investments – acquisitions

(633)

(396)

(1,582)

(2,343)

Short-term investments – liquidations

511 

832 

2,141 

1,603 

Net cash (used in) provided by investing activities

(527)

218 

(326)

(1,714)

Cash Flows from Financing Activities:

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

(8)

(2)

(18)

(14)

Proceeds from issuance of long-term debt, net

246 

Retirements of long-term debt

(238)

(343)

Proceeds from issuance of common stock, net

4 

9 

17 

20 

Proceeds from the exercise of stock options

20 

47 

89 

280 

Repurchases of common stock

(125)

(125)

Dividends paid

(79)

(79)

Other, net

(2)

(2)

(12)

Net cash (used in) provided by financing activities

(190)

54 

(356)

177 

Effect of exchange rates on cash

44 

4 

58 

(1) 

Net increase (decrease) in cash and cash equivalents

4 

751 

721 

(363)

Cash and cash equivalents at beginning of period

1,874 

1,123 

1,157 

1,342 

Cash and cash equivalents at end of period

$

1,878 

$

1,874 

$

1,878 

$

979 

- 10 -

Display
Technologies

Telecom-
munications

Environmental
Technologies

Life
Sciences

All
Other

Total

Three months ended September 30, 2007

Net sales

$

705 

$

472 

$

198 

$

78 

$

100 

$

1,553 

Depreciation (1)

$

81 

$

29 

$

23 

$

4 

$

8 

$

145 

Amortization of purchased intangibles

$

2 

$

2 

Research, development and engineering expenses (2)

$

34 

$

20 

$

32 

$

14 

$

11 

$

111 

Income tax provision

$

(38)

$

(22)

$

(9)

$

(1)

$

(70)

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

$

380 

$

27 

$

14 

$

1 

$

(6)

$

416 

Minority interests

$

(1)

$

(1)

Equity in earnings (loss) of affiliated companies

$

160 

$

1 

$

(8)

$

153 

Net income (loss)

$

540 

$

27 

$

14 

$

1 

$

(14)

$

568 

Three months ended September 30, 2006

Net sales

$

506 

$

456 

$

153 

$

68 

$

99 

$

1,282 

Depreciation (1)

$

69 

$

36 

$

19 

$

5 

$

9 

$

138 

Amortization of purchased intangibles

$

2 

$

2 

Research, development and engineering expenses (2)

$

30 

$

20 

$

30 

$

12 

$

9 

$

101 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest)

$

(3)

$

3 

$

2 

$

2 

Income tax provision

$

(22)

$

(11)

$

(3)

$

(1)

$

(37)

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

$

257 

$

24 

$

7 

$

(8)

$

(1)

$

279 

Minority interests

$

(5)

$

(1)

$

(6)

Equity in earnings of affiliated companies (4)

$

138 

$

1 

$

9 

$

148 

Net income (loss)

$

395 

$

20 

$

7 

$

(8)

$

7 

$

421 

Nine months ended September 30, 2007

Net sales

$

1,839 

$

1,349 

$

568 

$

232 

$

290 

$

4,278 

Depreciation (1)

$

241 

$

94 

$

66 

$

14 

$

25 

$

440 

Amortization of purchased intangibles

$

7 

$

7 

Research, development and engineering expenses (2)

$

89 

$

60 

$

93 

$

39 

$

33 

$

314 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest)

$

(2)

$

(2)

Income tax provision

$

(90)

$

(44)

$

(17)

$

(1)

$

(152)

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

$

1,001 

$

94 

$

36 

$

1 

$

(10)

$

1,122 

Minority interests

$

(1)

$

(1)

$

(2)

Equity in earnings (loss) of affiliated companies

$

405 

$

3 

$

1 

$

(5)

$

404 

Net income (loss)

$

1,406 

$

96 

$

37 

$

1 

$

(16)

$

1,524 

Nine months ended September 30, 2006

Net sales

$

1,514 

$

1,325 

$

460 

$

215 

$

291 

$

3,805 

Depreciation (1)

$

199 

$

121 

$

59 

$

15 

$

29 

$

423 

Amortization of purchased intangibles

$

8 

$

8 

Research, development and engineering expenses (2)

$

96 

$

58 

$

91 

$

37 

$

25 

$

307 

Restructuring, impairment and other charges and (credits) (before-tax and minority interest)

$

2 

$

5 

$

6 

$

13 

Income tax provision

$

(72)

$

(30)

$

(6)

$

(5)

$

(113)

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

$

741 

$

62 

$

16 

$

(15)

$

2 

$

806 

Minority interests

$

(5)

$

(3)

$

(8)

Equity in earnings (loss) of affiliated companies (4)

$

415 

$

4 

$

(1)

$

8 

$

426 

Net income (loss)

$

1,156 

$

61 

$

15 

$

(15)

$

7 

$

1,224 

- 11 -

(1)

Depreciation expense for Corning’s reportable segments is recorded based on the assets of each segment and also 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)

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.

(4)

In the three and nine months ended September 30, 2007, equity in earnings (loss) of affiliated companies includes charges of $18 million and $33 million, respectively, in All Other related to impairments for Samsung Corning. In the three and nine months ended September 30, 2006, equity in earnings (loss) of affiliated companies includes charges of $2 million and $26 million, respectively, in All Other related to impairments for Samsung Corning.

Three months ended
September 30,

Nine months ended
September 30,

2007

2006

2007

2006

Net income of reportable segments

$

568 

$

421 

$

1,524 

$

1,224 

Unallocated amounts:

Net financing costs (1)

10 

5 

28 

(5)

Stock-based compensation expense

(29)

(33)

(100)

(95)

Exploratory research (2)

(31)

(22)

(88)

(62)

Corporate contributions

(6)

(7)

(26)

(24)

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

86 

84 

271 

262 

Asbestos settlement (4)

16 

(13)

(170)

(137)

Other corporate items (5)

3 

3 

(6)

46 

Net income

$

617 

$

438 

$

1,433 

$

1,209 

(1)

Net financing costs include interest expense, interest income, and interest costs and investment gains associated with benefit plans.

(2)

Exploratory research includes $12 million and $34 million of spending in the three and nine months ended September 30, 2007, respectively, on development programs such as silicon on glass, green lasers and micro-reactors.

(3)

In the nine months ended September 30, 2006, equity in earnings of affiliated companies, net of impairments, includes a $33 million gain representing our share of a tax settlement relating to an IRS examination at Dow Corning.

(4)

The asbestos settlement arrangement to be incorporated into the Pittsburgh Corning Corporation (PCC) reorganization plan, if the reorganization plan becomes effective, will require Corning to relinquish its equity interest in PCC, contribute its equity interest in Pittsburgh Corning Europe (PCE), and 25 million shares of Corning common stock to a trust. Corning also agreed to make cash payments over the six years from the effective date of the settlement and to assign certain insurance policy proceeds from its primary insurance and a portion of its excess insurance at the time of the settlement. The asbestos liability requires adjustment to settlement value based upon movements in Corning’s common stock price prior to contribution of the shares to the trust as well as change in the estimated settlement value of the other components of the settlement offer. In the third quarter of 2007 and 2006, Corning recorded a credit of $23 million and a charge of $6 million, respectively, to reflect the movement in Corning’s common stock price in each year and charges of $7 million, to reflect changes in the estimated settlement value of the other components of the settlement offer. In the nine months ended September 30, 2007 and 2006, Corning recorded charges of $149 million and $119 million, respectively, to reflect the movement in Corning’s common stock price in each year and charges of $21 million and $18 million, respectively, to reflect changes in the estimated settlement value of other components of the settlement offer.

(5)

Other corporate items include the tax impact of the unallocated amounts. In addition, the following items are also included:

•

In the nine months ended September 30, 2007, loss of $15 million from the repurchase of $223 million principal amount of our 6.25% Euro notes due 2010.

•

In the nine months ended September 30, 2006, tax benefits of $48 million from the release of valuation allowances for certain foreign locations.

- 12 -