康寧 (GLW) 2016 Q4 法說會逐字稿

Ladies and gentlemen, welcome to the Corning Incorporated quarter four 2016 earnings results. It's my pleasure to turn the call over to Ann Nicholson, Division Vice President of Investor Relations. Please go ahead.

各位女士、先生，歡迎參加康寧公司（Corning Incorporated）2016 年第四季財報結果電話會議。我很高興把電話會議交給投資人關係事業部副總裁 Ann Nicholson。請開始。

Thank you, John, and good morning. Welcome to Corning's fourth-quarter 2016 conference call. With me today is Wendell Weeks, Chairman and Chief Executive Officer; Tony Tripeny, Senior Vice President and Chief Financial Officer; and Jeff Evenson, Senior Vice President and Chief Strategy Officer.

謝謝你，John，大家早安。歡迎參加康寧 2016 年第四季電話會議。今天與我一同出席的有董事長兼執行長 Wendell Weeks；資深副總裁兼財務長 Tony Tripeny；以及資深副總裁兼策略長 Jeff Evenson。

Before we begin our formal comments, I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These remarks involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially. These factors are detailed in the Company's financial reports.

在我們開始正式發言之前，我想提醒各位，今天的談話包含前瞻性陳述，屬於 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所界定的範圍。這些陳述涉及多項風險、不確定性及其他因素，可能導致實際結果出現重大差異。相關因素已在本公司的財務報告中詳述。

You should also note that we will be discussing our results using core performance measures, unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business. A reconciliation of core results to the comparable GAAP value can be found on the investor relations section of our website at Corning.com.

另請注意，除非我們特別指出評論與 GAAP 數據相關，否則我們將以核心績效衡量指標（core performance measures）來討論結果。我們的核心績效衡量指標為非 GAAP 指標，管理團隊用以分析業務表現。核心結果與可比 GAAP 數值的調節表，可在 Corning.com 網站的投資人關係專區查閱。

Slides are posting live on our webcast to accompany our formal comments, and with encourage you to follow along. They'll also be available on our website for downloading. Now, I'll turn the call over to Wendell.

配合我們的正式發言，簡報投影片正於網路直播中即時發布，我們也鼓勵各位一同跟進。投影片也將提供於我們網站供下載。現在，我把電話會議交給 Wendell。

Thank you, Ann, and good morning, everyone. Early last year, we told you that we expected our momentum to build steadily throughout 2016, and it did.

謝謝你，Ann，各位早安。去年年初，我們告訴各位，我們預期 2016 年的動能將穩步增強，而事實確實如此。

As we reported this morning, we finished the year with a very strong fourth quarter, with sales up 6%, net income up 24%, and EPS of $0.50, up 47% year-over-year. We see this momentum continuing, and anticipate year-over-year sales, net income, and EPS growth in the first quarter. Tony will cover our financial performance and outlook in greater detail, in just a few minutes.

如同我們今早所公布的，我們以非常強勁的第四季為全年收官：銷售額成長 6%，淨利成長 24%，每股盈餘（EPS）為 0.50 美元，年增 47%。我們認為這股動能將持續，並預期第一季的銷售額、淨利與 EPS 都將呈現年增。Tony 將在幾分鐘後更詳細說明我們的財務表現與展望。

These corroborating results and our progress on key value creation initiatives continue to reinforce our confidence in the strategy and capital allocation framework that we introduced in October of 2015. The framework outlines our leadership priorities, and articulates the opportunities we see across our businesses.

這些相互印證的成果，以及我們在關鍵價值創造計畫上的進展，持續強化我們對 2015 年 10 月所提出之策略與資本配置架構的信心。該架構概述我們的領導力優先事項，並闡明我們在各項業務中所看到的機會。

We designed the framework to create significant value for shareholders, by focusing our portfolio, and leveraging our financial strength. As you know, under our framework, we target generating $26 billion to $30 billion in cash through 2019, and plan to return more than $12.5 billion to our shareholders through repurchases and dividends.

我們設計此架構的目的，是透過聚焦投資組合並運用我們的財務實力，為股東創造顯著價值。如各位所知，依據該架構，我們目標在 2019 年前創造 260 億至 300 億美元現金，並計畫透過庫藏股回購與股利，向股東回饋超過 125 億美元。

We have made great progress against that goal. Since October 2015, we have returned a total of $6 billion by increasing the dividend 12.5% last February, and by repurchases that reduced outstanding shares by approximately 22%.

我們在達成該目標方面已取得重大進展。自 2015 年 10 月以來，我們合計已回饋 60 億美元，包括去年 2 月將股利提高 12.5%，以及透過回購使流通在外股數約減少 22%。

In 2016, we also realigned our interest in Dow Corning. That transaction further focused our portfolio, and unlocked tremendous value for our shareholders. In addition to cash distributions, we plan to invest $10 billion to sustain our leadership, and deliver growth over the long-term.

在 2016 年，我們也重新調整了在 Dow Corning 的權益。該交易進一步聚焦我們的投資組合，並為股東釋放了巨大的價值。除現金分配外，我們也計畫投資 100 億美元，以維持領導地位並推動長期成長。

We are best in the world in three core technologies, four manufacturing and engineering platforms, and five market access platforms. We focus 80% of our resources on opportunities that use existing capabilities in at least two of the three areas. We're investing in research and development, capital expansion and acquisitions, to advance our innovation initiatives, strengthen our leadership and low-cost positions, and ultimately outperform our competitors.

我們在三項核心技術、四個製造與工程平台，以及五個市場進入平台方面，皆為全球領先。我們將 80% 的資源聚焦於至少能運用上述三大領域中兩項既有能力的機會。我們投資於研發、資本擴張與併購，以推進創新計畫、強化我們的領導地位與低成本優勢，並最終超越競爭對手。

By pursuing this strategy, we believe that our likelihood of success increases, our cost of innovation decreases, and we create higher and more sustainable competitive barriers. Our focus in leadership also attracts some of the world's leading companies to our ecosystem, because they see how our unique expertise can help address some of their toughest challenges. This is leading to improved performance and excellent momentum in our market access platforms.

透過推動此策略，我們相信成功機率將提高、創新成本將降低，並能建立更高且更可持續的競爭壁壘。我們對領導地位的聚焦，也吸引了全球一些領先企業加入我們的生態系，因為他們看到我們獨特的專業能力可協助解決其最棘手的挑戰。這正帶動我們市場進入平台的表現改善與優異動能。

Let's look at a few examples. In our optical communications market access platform, our goal is to add $2 billion in sales by 2020. Optical communications is a fully-evolved example of our focused 3-4-5 portfolio.

我們來看幾個例子。在光學通訊市場進入平台方面，我們的目標是在 2020 年前新增 20 億美元銷售額。光學通訊是我們聚焦的 3-4-5 投資組合的完整成熟範例。

We began more than 40 years ago, by leveraging our deep knowledge of optical physics, glass science and vapor deposition, to disrupt the telecommunications industry with optical fiber. Over time, we increased our value-add by leveraging ceramics, extrusion and precision forming. Today, we are reaping the benefits of this unique combination of our capabilities, in segments like fiber-to-the-home and hyperscale data centers.

40 多年前，我們運用在光學物理、玻璃科學與氣相沉積方面的深厚知識，以光纖顛覆電信產業。隨著時間推進，我們再運用陶瓷、擠出與精密成形來提升附加價值。如今，我們正於光纖到府（FTTH）與超大規模資料中心等領域，收穫這種獨特能力組合所帶來的成果。

During 2016, we improved our cost position and won customer commitments that support long-term growth. In the fourth quarter, optical communication sales rose 11% year-over-year, and we expect growth in this business to accelerate in 2017.

在 2016 年期間，我們改善了成本結構，並取得支持長期成長的客戶承諾。第四季光學通訊銷售額年增 11%，我們預期 2017 年該業務的成長將加速。

In our automotive market access platform, we are building on our existing environmental business, with the addition of a significant new business for gas particulate filters, or GPFs, and a Gorilla-sized automotive glass business. Consistent with OEM announcements, we believe that GPFs will be the preferred approach to meet new regulations for particulate emissions from gasoline direct injection engines.

在汽車市場進入平台方面，我們在既有環保業務基礎上，新增了汽油顆粒過濾器（gas particulate filters，GPF）這項重要新業務，以及規模如「Gorilla」般的汽車玻璃業務。依據 OEM 的公告，我們相信 GPF 將成為符合汽油直噴（GDI）引擎顆粒物排放新法規的首選方案。

GDI engines offer both higher performance and better fuel economy. And, as a result, have grown to about a quarter of passenger car sales worldwide, with units growing in the high teens annually. Platform awards began in 2016, and we have won the majority.

GDI 引擎同時提供更高性能與更佳燃油經濟性。因此，其占全球乘用車銷量的比重已成長至約四分之一，且年出貨量以每年約十幾個百分點的速度成長。平台訂單自 2016 年開始釋出，而我們已贏得其中大多數。

In December, the European Union agreed on its 6C regulations, which introduced new real-world emissions tests, starting in September of 2017. All new cars will need to comply with the rules, starting in September of 2018. In December, China also finalized related regulations.

12 月，歐盟同意 6C 法規，導入新的實際道路排放測試，並自 2017 年 9 月開始實施。自 2018 年 9 月起，所有新車都必須符合該規定。12 月，中國也最終敲定了相關法規。

We expect gas particulate filters to become a significant business for Corning. GPFs offer the potential to increase our sales opportunity per vehicle by a factor of three to four, with profitability similar to our current business. In line with our commitment to invest $10 billion in growth opportunities, our investment in GPF is ramping to support customer commitments. You will see both cost on our P&L and capitol expenditures in the near term, and we'll start to see sales in the second half of the year.

我們預期汽油顆粒過濾器將成為康寧的重要業務。GPF 有潛力使我們每輛車的銷售機會提升 3 到 4 倍，且獲利能力與我們現有業務相近。依據我們承諾投資 100 億美元於成長機會的規劃，我們對 GPF 的投資正加速擴增，以支援客戶承諾。短期內，您將在我們的損益表（P&L）看到相關成本，也會看到資本支出；而我們將在下半年開始看到銷售貢獻。

In 2017, we also expect progress towards commercialization of Gorilla Glass for auto, for both vehicle exteriors and interiors. To tap this opportunity, we are reapplying our core technologies and reusing our manufacturing assets, to provide advantage glass that can make cars cleaner, safer, and more connected. Our decades-long relationships with auto manufacturers have assisted in gaining collaboration on testing and development.

在 2017 年，我們也預期 Gorilla Glass 車用玻璃在車外與車內應用的商業化將取得進展。為掌握此機會，我們正重新運用核心技術並重複利用既有製造資產，提供具優勢的玻璃解決方案，使汽車更潔淨、更安全、連結性更強。我們與汽車製造商長達數十年的合作關係，也有助於推動測試與開發方面的協作。

During 2016, we successfully formed a joint venture with Saint-Gobain. We've passed Government safety tests, and have been engaged in many promising dialogues with customers. The concept car we introduced at CES that used Gorilla Glass in a myriad of ways was frequently cited as a top innovation at the show.

在 2016 年期間，我們成功與 Saint-Gobain 成立合資企業。我們已通過政府安全測試，並與客戶進行多項具前景的洽談。我們在 CES 發表的概念車，以多種方式運用 Gorilla Glass，並經常被評為展會上的頂尖創新之一。

In our mobile consumer electronics market access platform, we seek to increase our revenue per phone, and win placement on new devices. Our goal is to double our sales, despite flattening smartphone unit growth. We're pursuing that goal in a number of ways:

在我們的行動消費性電子產品市場進入平台中，我們致力於提高每支手機的營收，並爭取在新裝置上取得導入配置。儘管智慧型手機出貨量成長趨於持平，我們的目標是將銷售額翻倍。我們正透過多種方式追求該目標：

First, we continue to lead the market with best-in-class products. Gorilla Glass 5 is the best glass for drop performance in the market today, and we are seeing that superior performance translate into a meaningful price premium, that increases our revenue per phone.

第一，我們持續以同級最佳產品引領市場。Gorilla Glass 5 是目前市場上抗摔表現最佳的玻璃，我們看到這種優異表現轉化為可觀的價格溢價，進而提高我們每支手機的營收。

Second, we are selling more glass per device, given handset antenna requirements to support increasing data rates, and the desire for wireless charging, glass is becoming a preferred material in more places on phones. Also, we have launched a glass specifically designed for screen protectors, for those who want added protection on their device.

第二，隨著手機天線需支援更高資料傳輸速率，以及對無線充電的需求，我們每台裝置銷售的玻璃用量正在增加，玻璃正成為手機更多部位的首選材料。此外，我們也推出了專為螢幕保護貼設計的玻璃，提供希望為裝置增加防護的使用者。

Third, we are enabling more value per device by adding functionality, which opens up new device categories. For example, our Vibrant product enables photo realistic images on handhelds and notebooks, while Gorilla Glass SR+ offers outstanding scratch performance on wearables, such as the Gear 3 from Samsung.

第三，我們透過增加功能來提升每台裝置的價值，從而開啟新的裝置類別。例如，我們的 Vibrant 產品可在手持裝置與筆記型電腦上呈現照片寫實影像；而 Gorilla Glass SR+ 則在穿戴式裝置上提供卓越的抗刮表現，例如三星的 Gear 3。

Fourth, we can add sales by focusing on markets where we can gain share. In all cases, our close relationships with our customers enable us to work jointly with them on compelling new mobile consumer products.

第四，我們可透過聚焦於能提升市占的市場來增加銷售。在所有情況下，我們與客戶的緊密關係使我們能與其共同開發具吸引力的新型行動消費性產品。

In summary, we believe the strategic and financial benefits of Corning's cohesive and focused portfolio are becoming even more apparent, as we enter the second year under our framework. Let me turn the call over to Tony, for a review of our results, and details on our outlook for 2017. Tony?

總結而言，隨著我們在該架構下進入第二年，我們相信康寧（Corning）一致且聚焦的產品組合所帶來的策略與財務效益正變得更加明顯。接下來我把電話交給 Tony，請他回顧我們的業績，並說明 2017 年展望的細節。Tony？

Thank you, Wendell, and good morning. As we noted in today's release, our fourth-quarter core results reflect the sequential and year-over-year improvement we expected, and we are very pleased with our strong operating performance. Net income and earnings were both up significantly. Looking ahead, we see year-over-year growth in the first quarter in sales, net income, and EPS.

謝謝你，Wendell，大家早安。如同我們在今日新聞稿中所提到的，我們第四季的核心業績反映了我們預期的季對季與年對年改善，我們對強勁的營運表現感到非常滿意。淨利與每股盈餘皆大幅成長。展望未來，我們預期第一季在銷售、淨利與 EPS 方面將呈現年對年成長。

Before I get into the details of our performance and results, I wanted to briefly note that the primary difference between our GAAP and core results for the fourth quarter is, again, a non-cash mark-to-market adjustment. As we have discussed previously, GAAP accounting requires earnings translation head contracts, settling in future periods, to be marked-to-market and recorded at their current value in the current quarter, even though those contracts will not be settled in the current quarter.

在我進入業績與結果細節之前，我想先簡要說明，第四季 GAAP 與核心結果之間的主要差異，仍然是非現金的按市價評價（mark-to-market）調整。如同我們先前討論過的，GAAP 會計要求將未來期間結算的收益換算避險合約按市價評價，並以其在當季的現值於當季入帳，即使這些合約不會在當季結算。

During the fourth quarter, the yen weakened, which resulted in a GAAP gain of $1.1 billion, when we marked the contracts to market, as required by GAAP. To be clear, this mark-to-market accounting has no impact on our cash flow.

在第四季，日圓走弱，依 GAAP 規定我們將合約按市價評價後，產生了 11 億美元的 GAAP 利得。需要明確的是，這項按市價評價的會計處理對我們的現金流沒有影響。

We remain very pleased with the results of our hedging program, and the economic certainty it delivers. Since its inception, we have received cash totaling $1.3 billion under our hedge contracts. These proceeds offset much of the yen-related decline in display's earnings. Hedging our earnings and cash flow through 2022 substantially mitigates risk from a weakening yen.

我們仍對避險計畫的成果以及其帶來的經濟確定性感到非常滿意。自該計畫啟動以來，我們已從避險合約中收到合計 13 億美元的現金。這些款項抵銷了顯示業務因日圓因素造成的獲利下滑的大部分影響。將我們的獲利與現金流避險至 2022 年，能大幅降低日圓走弱帶來的風險。

For the investors who have additional questions on the mechanics of the contracts, please refer to the tutorial on FX hedge accounting on the digital media disclosure section of our investor relations website. And as always, Ann and her team are available after the call.

對於想進一步了解合約運作機制的投資人，請參考我們投資人關係網站「數位媒體揭露」區中的外匯避險會計教學（tutorial）。一如往常，Ann 與她的團隊會在電話會議後提供協助。

Note that for the full year, marking those contracts to market resulted in a non-cash loss of $409 million. The more significant difference between GAAP and core results for the full year was the $2.7 billion benefit from the strategic realignment of Dow Corning, that was completed in the second quarter. As Wendell noted, this transaction provided tremendous value for our shareholders.

請注意，就全年而言，將這些合約按市價評價導致 4.09 億美元的非現金損失。全年 GAAP 與核心結果之間更顯著的差異，是第二季完成的 Dow Corning 策略重整所帶來的 27 億美元利益。如 Wendell 所說，這筆交易為股東創造了巨大的價值。

Turning to fourth-quarter core results, sales grew 6% year over year, and net income was $534 million, up 24% year-over-year. Adjusting for the former Dow Corning silicones business equity earnings, which no longer contribute to our results, net income grew 36% year over year. Fourth-quarter EPS was $0.50, up 47%.

回到第四季核心結果，銷售額年對年成長 6%，淨利為 5.34 億美元，年對年成長 24%。若調整前 Dow Corning 矽酮業務的權益法收益（已不再計入我們的業績），淨利年對年成長 36%。第四季 EPS 為 0.50 美元，成長 47%。

These positive year-over-year results were primarily due to rapid adoption of Gorilla Glass 5, and record Gorilla Glass volume, which produced higher sales and a profit boost from its premium price; sales growth and higher profitability in optical communications; and LCD glass volume growth and moderate pricing. We delivered a 43% gross margin, as expected, which was up 140 basis points from last year.

這些正向的年對年結果主要來自：Gorilla Glass 5 的快速導入與 Gorilla Glass 創紀錄的出貨量，因其溢價定價帶動更高銷售與獲利提升；光學通訊的銷售成長與獲利能力提升；以及 LCD 玻璃出貨量成長與溫和的價格走勢。我們如預期達成 43% 的毛利率，較去年提高 140 個基點。

SG&A was 14% of sales, at $350 million. RD&E was 7% of sales at $173 million, benefiting from the proceeds of a joint development agreement with a display customer.

SG&A 為銷售額的 14%，金額為 3.50 億美元。RD&E 為銷售額的 7%，金額為 1.73 億美元，受惠於與某顯示客戶簽訂共同開發協議所取得的款項。

Total gross equity earnings were $112 million, driven primarily by our equity earnings from Hemlock, which is seasonally strongest in Q4. Our effective tax rate for the quarter was 17%. Turning briefly to the balance sheet, adjusted operating cash flow for the year was $2.75 billion, and we ended the year with $5.3 billion of cash, approximately 40% of which is in the US.

權益法收益總額為 1.12 億美元，主要由 Hemlock 的權益法收益所帶動，該業務在第四季通常為季節性最強。本季有效稅率為 17%。簡要談一下資產負債表，全年調整後營運現金流為 27.5 億美元，年底現金為 53 億美元，其中約 40% 位於美國。

Now let's look at the detailed segment results, and the outlook for each business, beginning with display technologies. The fourth-quarter display market, and our results were strong, and in line with guidance. Sales were $904 million, and net income was $276 million.

現在我們來看各事業的詳細分部結果與展望，先從顯示技術開始。第四季顯示市場與我們的表現強勁，且符合指引。銷售額為 9.04 億美元，淨利為 2.76 億美元。

Industry dynamics played out, as we said they would, in October. The fourth quarter is the strongest season at retail. Based on preliminary data, premium retail area growth year over year was robust, particularly in North America and China. Our customers, the panel makers, kept their utilizations high to meet this demand.

產業動態如同我們在 10 月所說的那樣發展。第四季是零售端最強的旺季。根據初步數據，高端零售面積年對年成長強勁，尤其在北美與中國。我們的客戶——面板製造商——為了滿足需求，維持高稼動率。

Our fourth-quarter glass volume tracked with the market, and was up low teens year-over-year. Sequentially, our volume was down slightly. Supply chain inventory exited the year at a healthy level, and panel makers' inventories remain lean. Fourth-quarter LCD glass price declined moderately sequentially, in fact, more moderately than Q3.

我們第四季玻璃出貨量與市場同步，年對年成長約十幾個百分點（低十位數）。就季對季而言，我們的出貨量略為下滑。供應鏈庫存於年底維持在健康水位，面板製造商的庫存仍然偏精實。第四季 LCD 玻璃價格季對季溫和下滑，實際上比第三季更為溫和。

For the full year, glass demand grew in the mid-single-digits. As we predicted, growth was driven primarily by average TV screen size, which grew more than 1.5 inches. Our volume for the full year grew mid-single digits, in line with the glass market.

就全年而言，玻璃需求成長約中個位數。如我們所預測，成長主要由平均電視螢幕尺寸帶動，全年增加超過 1.5 吋。我們全年出貨量成長約中個位數，與玻璃市場一致。

Now, looking into 2017, we expect the retail market, as measured in square feet of glass, to be up mid-single digits, driven primarily by demand for larger screen size TVs. Let me walk you through the details. First, TV units at retail are expected to be flat, or possibly up 1%. This has a small contribution to glass market area growth.

展望 2017 年，我們預期以玻璃平方英尺衡量的零售市場將成長約中個位數，主要由更大螢幕尺寸電視的需求所帶動。我來帶各位看一下細節。第一，零售端電視銷量預期持平，或可能成長 1%。這對玻璃市場面積成長的貢獻不大。

Second, TV screen size should grow about 1.5 inches, consistent with the trend of the last three years. This will contribute 4% to 5% to end market glass area growth in 2017.

第二，電視螢幕尺寸應會增加約 1.5 吋，與過去三年的趨勢一致。這將在 2017 年為終端市場玻璃面積成長貢獻 4% 至 5%。

Third, we think IT will be flat, with larger screen sizes offset by lower units. We do not expect IT and other smaller form factors to contribute to glass market growth.

第三，我們認為 IT 將持平，較大螢幕尺寸將被較低出貨量所抵銷。我們不預期 IT 與其他較小尺寸產品形態會對玻璃市場成長有所貢獻。

And, fourth, the value chain enters the year with healthy inventory levels, and we think inventory will again be healthy at year-end 2017, expanding during the first half to prepare for a seasonally-strong second half, when inventory will contract. Taken together, we expect our demand to be up mid-single digits in 2017, in line with the overall market.

第四，價值鏈在年初即擁有健康的庫存水位；我們認為 2017 年底庫存仍將維持健康，上半年為因應下半年季節性強勁需求而擴增庫存，而在下半年庫存將收縮。綜合而言，我們預期 2017 年需求將成長中個位數百分比，與整體市場一致。

Specifically for the first quarter, we expect the glass market and our volume to be up mid-teens over last year's first quarter. This is down mid-single digits sequentially, driven by two fewer production days in the quarter, and a reduction in panel maker capacity. As context, late in Q4, Korean panel makers began to take down some lines, to convert the flexible OLED manufacturing for smart phones.

就第一季而言，我們預期玻璃市場與我們的出貨量將較去年第一季成長約中十位數百分比。按季比較則將下滑中個位數百分比，主因為本季少了兩個生產日，以及面板廠產能下調。作為背景說明，在第四季末，韓國面板廠開始關閉部分產線，以轉換為智慧型手機用可撓式 OLED 製造。

New fabs are coming online over the course of 2017. Therefore, panel capacity will increase throughout the year. When one panel maker reduces production in one fab, other panel makers will need to produce more to meet retail demand. We expect to maintain our worldwide share position, due to our broad and diversified customer base.

新的晶圓廠（fab）將在 2017 年期間陸續投產。因此，面板產能將在全年持續增加。當某一家面板廠在某座工廠降低產量時，其他面板廠將需要提高產量以滿足零售端需求。憑藉我們廣泛且多元的客戶基礎，我們預期將維持全球市占地位。

We believe the full-year 2017 glass price declines will be more moderate than 2016. In fact, we may see the smallest declines in the last five years, as the profitability of our competitors remains low, and supply/demand remains in balance. At this point, we already have more than 90% of our 2017 volume under contract.

我們認為 2017 全年玻璃價格下跌幅度將較 2016 年溫和。事實上，隨著競爭對手獲利能力仍偏低、供需維持平衡，我們可能會看到過去五年中最小的跌幅。截至目前，我們 2017 年出貨量已有超過 90% 簽訂合約。

For Q1, we expect the sequential LCD glass price declines also to be moderate, and very similar to the decline in the first quarter of 2016, which was the best for our first quarter in the past five years. Keep in mind, Q1 is typically the quarter with the largest decline for the year, as annual supply agreements are finalized.

就第一季而言，我們預期 LCD 玻璃價格按季下跌也將較為溫和，且與 2016 年第一季的跌幅非常相近；2016 年第一季是我們過去五年中表現最佳的第一季。請記住，第一季通常是一年中跌幅最大的季度，因為年度供應協議會在此時定案。

Let's move to optical communications, where we are very pleased with the results, as fourth-quarter sales rose 11% and NPAT rose 85% over last year. The increased sales of our solution products and improved manufacturing performance contributed to the higher year-over-year sales and profitability. North America carrier network business provided the fourth-quarter growth highlight, as demand for our fiber-to-the-home solutions remained strong.

接著談光通訊，我們對結果非常滿意，因第四季銷售額較去年成長 11%，NPAT（稅後淨利）較去年成長 85%。解決方案產品銷售增加以及製造表現改善，帶動年增的銷售與獲利提升。北美電信業者網路業務是第四季成長亮點，因我們的 FTTH（光纖到府）解決方案需求仍然強勁。

Turning to 2017, we are preparing to leverage the strong opportunities we see within the existing telecom market. These include fiber market demand exceeding market supply; key industry leaders in telecom investing in optical solutions, particularly as they look to the next generations of network capabilities; and, finally, industry consolidations that favor some of our strong business partners. These are organizations that have turned to Corning's optical communications business many times for help in solving their cost and network capacity challenges.

展望 2017 年，我們正準備把握既有電信市場中的強勁機會。這些機會包括：光纖市場需求超過供給；電信產業關鍵領導者加碼投資光學解決方案，特別是在邁向下一代網路能力之際；以及最後，有利於我們部分強勢合作夥伴的產業整併。這些組織在解決成本與網路容量挑戰時，多次向康寧的光通訊事業尋求協助。

As a result, we expect low teens growth for full-year 2017 sales. The increase will largely be the result of a continuation of the growth trends we saw in the second half of 2016. In the first quarter, we expect year-over-year growth of at least 25%. As a reminder, a software implementation issue constrained sales in the first half of 2016.

因此，我們預期 2017 全年銷售額將成長約低十位數百分比。增長主要將來自 2016 年下半年所見成長趨勢的延續。第一季方面，我們預期年增至少 25%。提醒一下，2016 年上半年曾因軟體導入問題而限制了銷售。

In environmental, fourth-quarter sales were down slightly, in line with our expectations. For this business, it's a tale of two end markets, in very different places.

在環境事業方面，第四季銷售略為下滑，符合我們的預期。對這項業務而言，兩個終端市場的情況截然不同。

The light duty automotive market grew mid-single digits for the year. Our auto sales were a record, up 11% for the year, driven by winning additional business. The heavy duty diesel market is in a different place, particularly in North America, where truck builds were down 30% year on year, and our sales were down.

輕型車市場全年成長中個位數百分比。受惠於贏得更多業務，我們汽車相關銷售創下新高，全年成長 11%。重型柴油市場則處於不同情況，尤其在北美，卡車產量年減 30%，我們的銷售也隨之下滑。

Net income for the fourth quarter declined in line with our expectations. For the first quarter, we expect to report sales consistent to down slightly versus Q1 of last year.

第四季淨利下滑符合我們的預期。第一季方面，我們預期銷售額將與去年第一季大致持平或略為下滑。

For 2017 overall, we expect full-year sales to be consistent to up slightly from 2016. We expect continued sales growth in the auto market, and lower heavy duty volume.

就 2017 年整體而言，我們預期全年銷售額將與 2016 年大致持平或略有成長。我們預期汽車市場銷售將持續成長，而重型車出貨量將較低。

In 2017, we are making select capacity and engineering investments for the new GPF business, to prepare us to support customer commitments, and you will see both cost on our P&L and capital expenditures in the near term. As we've mentioned, we are excited about the GPF platform wins we have secured, and expect sales to begin during the second half of the year.

在 2017 年，我們將針對新的 GPF 業務進行選擇性的產能與工程投資，以便支援客戶承諾；短期內您將在我們的損益表（P&L）中看到相關成本，並在資本支出中看到投入。如同我們先前提到的，我們對已取得的 GPF 平台訂單（wins）感到振奮，並預期銷售將在下半年開始。

Let's move to specialty materials, where we were very pleased with the performance. Fourth-quarter sales rose 22% over last year, ahead of our expectations, led by record Gorilla Glass volume. Net income was up 48% year over year.

接著談特殊材料，我們對表現非常滿意。第四季銷售額較去年成長 22%，優於我們預期，主要由創紀錄的 Gorilla Glass 出貨量帶動。淨利年增 48%。

During the quarter, we saw rapid adoption of Gorilla Glass 5, as OEMs used it on more devices, a testament to our market leadership. As Wendell noted, our innovative products also can command a premium price. We began to feel the benefit of Gorilla Glass 5 pricing in the fourth quarter, and expect it to positively impact our financial performance in 2017.

本季我們看到 Gorilla Glass 5 快速被採用，因 OEM 將其用於更多裝置，這證明了我們的市場領導地位。如 Wendell 所提，我們的創新產品也能取得溢價。我們在第四季開始感受到 Gorilla Glass 5 定價帶來的效益，並預期其將在 2017 年對我們的財務表現產生正面影響。

Our growth prospects remain strong in this market. The newly-introduced Gorilla Glass 5 and Gorilla Glass SR+ provide added value for consumers in terms of durability, and we're working on even more innovations to increase our sales in the mobile consumer electronics market.

我們在此市場的成長前景依然強勁。新推出的 Gorilla Glass 5 與 Gorilla Glass SR+ 在耐用性方面為消費者帶來更高價值；我們也正投入更多創新，以提升我們在行動消費性電子市場的銷售。

In the first quarter, we're expecting specialty materials sales to grow in the high teens year over year, as our OEM customers continue to use Gorilla Glass on more devices. Keep in mind, the supply chain in this market is driven by the timing of new product launches, not calendar years.

第一季我們預期特殊材料銷售額將年增高十位數百分比，因 OEM 客戶持續在更多裝置上採用 Gorilla Glass。請記住，這個市場的供應鏈是由新產品上市時點所驅動，而非以曆年為基準。

We are highly confident that our specialty materials business will grow in 2017. The only question is how big that growth will be, which will depend on the timing and extent of customers employing Gorilla Glass 5 and other Corning innovations. We will certainly keep you posted as the year progresses.

我們對 2017 年特殊材料事業的成長非常有信心。唯一的問題是成長幅度有多大，這將取決於客戶採用 Gorilla Glass 5 與其他康寧創新技術的時點與程度。我們會在年度進行期間持續向各位更新。

In Life Sciences, fourth-quarter sales were up year over year, and net income growth outpaced that of sales. For full-year 2017 and the first quarter, we expect low single-digit growth year over year, ahead of forecasted market growth rates. As for our innovation program in pharmaceutical packaging, we continue to make progress, and look forward to sharing milestones as we can.

在生命科學方面，第四季銷售額年增，且淨利成長速度快於銷售。對於 2017 全年與第一季，我們預期年增低個位數百分比，優於預測的市場成長率。至於我們在藥品包裝的創新計畫，我們持續取得進展，並期待在適當時機分享里程碑。

Now, let's turn to a few more details on our first-quarter outlook. As Wendell noted, for the first quarter, we expect year-over-year growth in sales, net income and EPS.

現在，讓我們再補充一些第一季展望的細節。如 Wendell 所提，第一季我們預期銷售額、淨利與 EPS（每股盈餘）將年增。

We expect our first-quarter gross margin will be in the range of 42% to 43%, and SG&A and RD&E spending should be approximately 14% and 9% of sales respectively. We expect other income, other expense to be a net expense of approximately $40 million, and we expect first quarter total gross equity earnings to be approximately $15 million.

我們預期第一季毛利率將落在 42% 至 43% 區間，SG&A（銷售、一般及行政費用）與 RD&E（研發與工程）支出分別約為銷售額的 14% 與 9%。我們預期其他收入、其他費用合計將為約 4,000 萬美元的淨費用，並預期第一季權益法投資總毛利（gross equity earnings）約為 1,500 萬美元。

Those details should help you understand our view of the first quarter, but we wanted to provide a few insights regarding the full year as well. First, we presently believe full-year equity earnings will be approximately $150 million, predominantly from Hemlock Semiconductors.

這些細節應能幫助您理解我們對第一季的看法，但我們也希望就全年提供一些洞見。首先，我們目前認為全年權益法收益約為1.5億美元，主要來自Hemlock Semiconductors。

You may recall that we're receiving Hemlock's equity earnings on a pretax basis, since we closed the realignment of Dow Corning. We've put a schedule in the appendix to the slides for this call, that will walk you through the comparison. Further, we expect our effective tax rate for full-year 2017, and the first quarter will be approximately 17% to 18%.

您可能記得，由於我們已完成Dow Corning的重整，我們以稅前基礎認列Hemlock的權益法收益。我們在本次電話會議投影片的附錄中放入了一份明細表，將帶您逐步比較。此外，我們預期2017年全年以及第一季的有效稅率約為17%至18%。

Recall from our strategy and capital allocation framework that we plan on investing $10 billion from 2016 to 2019 in growth and sustained leadership, which included capital spending. We said the pace of CapEx would be dependent on customer demand. We anticipate investing a total of about $1.5 billion in 2017, which is up from 2016.

依據我們的策略與資本配置架構，請記得我們計畫在2016年至2019年間投資100億美元於成長與持續領導地位，其中包含資本支出。我們也提到資本支出的節奏將取決於客戶需求。我們預期2017年合計投資約15億美元，高於2016年。

This is driven by expansions related to four growth opportunities in our market access platforms: First, to support the double-digit growth of optical communications. Second, to support the success of our innovations in mobile consumer electronics.

這主要由我們市場接入平台中四項成長機會相關的擴產所帶動：第一，支援光通訊的兩位數成長。第二，支援我們在行動消費性電子產品創新成果的成功。

Third, to continue work on the gen 10.5 glass manufacturing facility, adjacent to BOE and display. You may recall this project exceeds our target of obtaining $2 of every $3 from others, when we invest in new melting capacity. And, fourth, to add capacity for the new gas particulate filter business in automotive.

第三，持續推進與BOE及顯示器相鄰的第10.5代玻璃製造廠建置。您可能記得，當我們投資新增熔融產能時，該專案取得「每投入3美元、由他方出資2美元」的比例，超過了我們的目標。第四，為汽車用新型氣體微粒過濾器（GPF）業務增加產能。

Now, finally, I wanted to comment on our plans to return at least $12.5 billion to shareholders under our strategy and capital allocation framework. Through year-end 2016, essentially the first year under the framework, we returned $6 billion.

最後，我想談談在我們的策略與資本配置架構下，至少向股東返還125億美元的計畫。截至2016年底，也就是該架構下的第一年，我們已返還60億美元。

In February 2016, the Board increased the cash dividend by 12.5%. Our repurchase activity included $2.5 billion spent on repurchases, to offset the EPS impact from the loss of the silicone's equity earnings from Dow Corning. In 2017, as we did in 2016, we planned to continue repurchasing opportunistically, reflecting our view that Corning remains undervalued.

2016年2月，董事會將現金股利提高12.5%。我們的庫藏股回購活動包含投入25億美元回購，以抵銷因Dow Corning矽利康（silicones）權益法收益流失對每股盈餘（EPS）的影響。2017年，我們如同2016年一樣，計畫持續視情況機動回購，反映我們認為康寧（Corning）目前仍被低估。

For your modeling purposes, we anticipate spending approximately $2 billion over the course of the year for repurchases, or roughly what we spent in 2016, excluding the spending to offset the loss of the silicone's equity earnings. Of course, the timing and amount of repurchase activities always depends on a variety of factors. In addition, we expect the Board to approve an increase of at least 10% per share in the annual dividend rate, in line with the framework.

就您建模之用，我們預期全年回購支出約20億美元，約略等同於2016年的支出（不含為抵銷矽利康權益法收益流失而進行的回購支出）。當然，回購活動的時點與金額一向取決於多項因素。此外，我們預期董事會將依照該架構，核准每股年度股利率至少提高10%。

Let me close by saying that we are very pleased with the strong fourth-quarter results, and our positive momentum coming into 2017. Overall, we feel very good about our progress against our framework, and the rich set of opportunities ahead of us. With that, let's move to Q&A. Ann?

最後我想說，我們對第四季強勁的業績表現，以及邁入2017年的正向動能感到非常滿意。整體而言，我們對照架構所取得的進展，以及未來豐富的機會組合，都感到非常樂觀。接下來我們進入問答。Ann？

Thank you, Tony. Operator, we'll now open the lines for questions.

謝謝你，Tony。接線員，我們現在開放提問。

(Operator Instructions)

(接線員指示)

First in line is Joseph Wolf with Barclays. Please go ahead.

第一位提問的是Barclays的Joseph Wolf。請開始。

So when does the car from CES go on sale? But more seriously, if we look into 2017, you gave a good overview of the display market, but I was hoping you could get us a little more color on the OLED market, in terms of both the large TV size and the smaller-sized handsets. There was a lot of OLED discussion at CES, and the starting price point on one of their new TVs from LG actually doesn't seem to be that high for market adoption. If you could just review for us your view on OLED and Corning's position in these new developments?

那台在CES亮相的車什麼時候開賣？不過更認真地說，若看2017年，你對顯示器市場做了很好的概述，但我希望你能就OLED市場提供更多細節，包含大尺寸電視以及較小尺寸的手機。CES上有很多關於OLED的討論，而LG其中一款新電視的起始售價看起來其實不算太高，可能有利於市場採用。你能否為我們回顧一下你對OLED的看法，以及康寧在這些新發展中的定位？

With regards to OLEDs, we continue to believe that OLEDs will not be a factor in large size TV of any significance, mainly because of their cost premium, and the value that they create in performance is not large enough versus an ever-improving LCD technology. We do, however, believe that the most compelling use of OLED technology is in the conformable displays for small form factors, especially smartphones.

就OLED而言，我們仍然認為OLED不會在大尺寸電視領域成為任何具重要性的因素，主要原因是其成本溢價，而相較於持續進步的LCD技術，OLED在性能上所創造的價值不足以抵銷成本差異。不過，我們確實認為OLED技術最具吸引力的應用是在小型尺寸、可貼合（conformable）的顯示器上，尤其是智慧型手機。

Although this is irrelevant a small part of the overall glass market, something less than 3%, the adoption of these type of displays will actually be a revenue enhancer for Corning, because we just developed a very special glass to be used, as the substrate for those poly unit displays, so our share is very high, as well as the glass utilization for one of these flexible OLEDs really is approximately the same as an [ace high] LCD today. I will expect that to improve over time, but that's where it's starting. So overall as we look at it from Corning's perspective, where we see OLED getting adopted ought to be a small but positive revenue event.

雖然這在整體玻璃市場中只占很小一部分，不到3%，但這類顯示器的採用實際上會提升康寧的營收，因為我們剛開發出一種非常特殊的玻璃，可作為那些poly unit顯示器的基板，因此我們的市占率非常高；此外，一片可撓式OLED的玻璃用量，與目前一片[ace high] LCD大致相當。我預期這會隨時間改善，但目前的起點是如此。因此，從康寧的角度整體來看，我們預期OLED的採用將帶來小幅但正向的營收貢獻。

Thank you.

謝謝。

Our next question is from Jess Lubert from Wells Fargo Securities. Please go ahead.

下一個問題來自Wells Fargo Securities的Jess Lubert。請開始。

Congrats on a nice quarter. Two questions. First for Wendell, you met with Trump yesterday, so I was hoping you could help us understand the key takeaways from Corning, to what extent fiber might fall under any infrastructure plans, and how the border tax adjustment under Trump versus Ryan are different, if one or the other is more advantageous to Corning?

恭喜本季表現不錯。兩個問題。第一個給Wendell：你昨天與川普會面，我希望你能幫我們理解康寧的主要收穫，包括光纖在多大程度上可能納入任何基礎建設計畫，以及川普版與Ryan版的邊境稅調整有何不同，哪一種對康寧更有利？

And a question on the optical business, I was hoping to understand how much of the Q4 strength was a function of business that slipped from last quarter coming back? And then it looks like you're expecting the business to see a nice acceleration this year. So I was hoping you could help us understand how that breaks down across carrier, data center, and to what extent that's a function of market acceleration versus improved execution, following some of the difficulties we saw in 2016?

另外一個關於光學業務的問題：我想了解第四季的強勁表現，有多少是因為上一季遞延的業務回流？此外，看起來你們預期今年業務會有不錯的加速成長。因此我希望你能協助我們理解，這在電信營運商、資料中心之間如何拆分，以及這在多大程度上是市場加速所致、或是相較於2016年我們看到的一些困難之後，執行改善所帶來的結果？

Sure. Let me start on the optical question. We definitely had good growth in the fourth quarter. It was higher than what we expected.

好的。我先從光學的問題開始。我們第四季確實有不錯的成長。表現高於我們的預期。

We did see the data center demand pick up in the fourth quarter. It was higher than Q3, and it was also higher than last year. I think what's important to remember about data center demand is it will be lumpy, because of the project nature of the business. But over time, we definitely expect this to be a strong driver of growth.

我們確實看到資料中心需求在第四季回升。不僅高於第三季，也高於去年同期。我認為關於資料中心需求需要記住的一點是：由於業務具有專案性質，需求會呈現波動（lumpy）。但從長期來看，我們確實預期這將成為強勁的成長驅動力。

And as we look out into next year, for our full year, we think our growth will be in the mid teens. A lot of that, of course, driven by fiber of the home and carriers. But we do expect some growth in the hyperscale data -- enterprise in general, including hyperscale data centers.

展望明年、以全年來看，我們認為成長將落在十位數中段（mid teens）。其中很大一部分當然由光纖到府（fiber to the home）與電信營運商所帶動。但我們也預期超大規模資料中心——以及一般企業市場（包含超大規模資料中心）——會有一些成長。

Now, for the first quarter, we said the growth would be greater than 25%. I think you can think about that, roughly half of that coming from the issues we had last year, and half of it being the strong market that we have. Because overall, we think the market in the mid teens gives you a sense that -- our growth in the mid teens gives you the sense that the market, we expect to grow greater than 10%.

至於第一季，我們說成長會高於25%。我認為你可以把它大致理解為：其中約一半來自我們去年遇到的問題所造成的基期因素，另一半則來自我們所處的強勁市場。因為整體而言，我們認為我們的成長在十位數中段，這也意味著我們預期市場成長將高於10%。

And, Tony, are you supply constrained at all in the fiber business at the moment?

而且，Tony，你們目前在光纖業務方面有任何供應受限的情況嗎？

Yes. I think that right now fiber supply is very tight.

是的。我認為目前光纖供應非常吃緊。

And then Wendell?

那麼，Wendell 呢？

The purpose of the visit with Trump was, is that, this administration has formed a small group of leading manufacturing executives in the US, for him to be able to listen to ideas and exchange ideas on how to improve manufacturing in the US, and more specifically, how to significantly increase manufacturing employment in the US. Given that, the actual dialogue is confidential, at least from our side, and it is up to the President to share what it is he sought to communicate to us, and what he gained from that communication.

這次與川普會面的目的在於，本屆政府已在美國組成一個由頂尖製造業高階主管構成的小組，讓他能夠聽取想法並交流意見，討論如何改善美國的製造業，更具體地說，如何大幅增加美國的製造業就業。基於此，實際對話內容至少就我們這一方而言屬於機密；是否以及如何對外分享他希望向我們傳達的內容、以及他從這次溝通中獲得了什麼，則由總統決定。

All right. Thank you.

好的。謝謝。

Our next question is from Rod Hall with JPMorgan. Please go ahead.

下一個問題來自摩根大通（JPMorgan）的 Rod Hall。請發問。

I've got a couple for you. I wanted to follow up, Tony, on your comment on hyperscale, and try to get some idea of what the trajectory looks like through the year. Do you expect acceleration in the second half? Do you think it's just cost and growth all the way through the year? Can you give us any color on how you expect that to go, and whether, I think you're alluding to Q1 bouncing back, but I think when we exited Q3, you had thought it might take until Q2, so is that a little bit earlier? So just trying to get a feeling on that.

我有幾個問題。Tony，我想追問你剛才對超大規模（hyperscale）的評論，並試著了解今年內的走勢軌跡大概會是什麼樣子。你預期下半年會加速嗎？你認為會是全年一路以成本與成長為主軸嗎？你能否提供一些看法，說明你預期會如何發展？另外，你似乎在暗示第一季會反彈，但我記得在第三季結束時，你原本認為可能要到第二季才會回升，所以這是否代表時間點稍微提前了？我只是想掌握一下整體感覺。

Wendell, I wanted to go back to not really the Trump meeting content, but just onshore manufacturing. I know you have capacity here. Could you talk a little bit about your flexibility in manufacturing location? Do you feel like you have got enough capacity onshore if you needed to start doing more here? And just give me any color on what sort of flexibility you feel like you've got there.

Wendell，我想回到不是川普會議內容本身，而是回到製造回流（onshore manufacturing）。我知道你們在這裡有產能。你能否談談你們在製造地點上的彈性？如果需要在美國做更多生產，你覺得你們在本土是否有足夠產能？也請提供一些你認為在這方面具備何種彈性的看法。

And then the last thing I wanted to ask about was just the glass demand growth. You are talking about mid-single digits. I think most of the deviation from our model is the IT expectations.

最後我想問的是玻璃需求成長。你們提到中個位數成長。我想我們模型與你們說法的差異，大多來自 IT 端的預期。

Why do you expect those numbers to be potentially down? A lot of the PC manufacturers and so on are thinking maybe there's some growth this year. So just curious about your expectations, versus what I'm hearing back from manufacturers. Thank you.

為什麼你們預期那些數字可能會下滑？很多 PC 製造商等都認為今年可能會有一些成長。所以我只是好奇你們的預期，與我從製造商那邊聽到的說法之間的差異。謝謝。

Why don't I start with the telecom question, Rod. I think from an overall standpoint, we did see the growth in the fourth quarter, and that was on a year-over-year basis, also versus Q3. But I think one thing that we learned in the process of talking about hyperscale growth is, because of the lumpy nature of it, and the timing. It just doesn't make sense to think about it on a quarter in, quarter out basis. I think it's more important to think about it on an annual basis, and it's part of our mid teens or low teens growth that we expect in 2017.

Rod，我先從電信的問題開始。整體而言，我們確實在第四季看到成長，這是以年對年來看，也相較於第三季。但我認為我們在討論超大規模成長的過程中學到的一點是，由於其波動性（lumpy）以及時點因素，用逐季（quarter in, quarter out）的方式來思考其實沒有太大意義。我認為更重要的是以年度角度來看，它是我們預期 2017 年中十位數或低十位數成長的一部分。

As far as our ability to onshore flexibility of our supply. Today, only around 20% to 25% of our revenue is in the US, but 35% or more of our people are in the US. So we're set up fundamentally as a pretty strong exporter from the US.

至於我們供應在地化（onshore）彈性的能力。目前我們只有約 20% 到 25% 的營收來自美國，但我們有 35% 或更多的員工在美國。因此從根本上來說，我們的布局是把美國作為相當強的出口基地。

That being said, and our fundamental philosophy is that we make in the countries where our customers are. And this has always been our philosophy, and we think it is just good business practice to be close to your customers, as well as responsible business practice. Really the only exception of that is to the US, where we are a strong exporter from this country, of product, and we employ for people than we sell here.

話雖如此，我們的基本理念是：在客戶所在的國家生產。這一直是我們的理念；我們認為貼近客戶不僅是良好的商業做法，也是負責任的商業實務。真正唯一的例外是美國：我們從這個國家大量出口產品，而且我們在這裡雇用的人數多於我們在這裡的銷售所對應的規模。

So that being said, if we see some significant onshoring of our customers' production capabilities, we do have the capability to flexibly react to that, in really all of our businesses. So if that does become a trend, I think that would be fabulous for the country, and it would be really good for us.

因此，如果我們看到客戶的生產能力出現顯著回流（onshoring），我們確實有能力在我們所有業務中靈活因應。所以如果那真的成為趨勢，我認為這對國家會非常好，對我們也會非常有利。

And then, Rod, on your last question on IT and screen sizes, I think at the end of the day, we don't expect it to have a big impact on the market. We agree, I think, IT is stronger than it has been over the last couple of years. But we still think that, you know, the units themselves, relatively flat, screen size relatively flat. So we just don't see it as a big contributor.

Rod，至於你最後關於 IT 與螢幕尺寸的問題，我認為歸根結底，我們不預期它會對市場造成很大影響。我們同意，IT 端確實比過去幾年更強。但我們仍然認為，出貨量本身大致持平、螢幕尺寸也相對持平。因此我們不把它視為主要的貢獻來源。

Of course, we could be wrong about that. It may be a little bit of a positive contributor, but I think we would still end up in that range of mid-single digits in terms of the glass market.

當然，我們也可能判斷錯誤。它可能會帶來一些正向貢獻，但我認為就玻璃市場而言，我們最終仍會落在中個位數成長的區間。

Okay. Great. Thank you.

好的。很好。謝謝。

And next we'll go to Steven Fox with Cross Research. Please go ahead.

接下來我們請 Cross Research 的 Steven Fox 提問。請發問。

I was wondering if you could dig down or help us a little bit on next year's or this year's Gorilla Glass outlook. First off, could you give us a sense for how you exited the year in terms of your mix of Gorilla Glass 5? And then, secondly, in terms of just the Gorilla Glass business, you mentioned a couple times now other Corning innovations that could help specialty materials.

我想請教你們能否更深入、或協助我們了解一下明年或今年 Gorilla Glass 的展望。首先，你能否讓我們了解一下，你們在年底時 Gorilla Glass 5 的產品組合占比大概如何？其次，就 Gorilla Glass 業務而言，你們已經提到幾次，還有其他康寧（Corning）的創新可能有助於特殊材料（specialty materials）。

Can you give us some clues as to what track that could be on, whether it's the next generation of Gorilla Glass, or something totally different that we haven't heard about yet? And then I have a quick follow-up. Thanks.

你能否提供一些線索，說明那可能會走向哪條路徑——是下一代 Gorilla Glass，還是某種我們尚未聽過、完全不同的東西？另外我還有一個簡短的追問。謝謝。

Clearly, Gorilla Glass 5 adoption was strong in the fourth quarter. I'm not going to give you the percentage of what it was, but it was strong in the fourth quarter, and we expect it to continue to accelerate as we go into 2017, and that's positive, both in terms of the volume itself and of the premium price. And that premium price clearly had a positive impact on our profitability in Q4. And it will continue to have an impact on our profitability in 2017.

很明顯地，Gorilla Glass 5 在第四季的採用非常強勁。我不會告訴你其占比是多少，但第四季確實很強，我們預期進入 2017 年後會持續加速；這是正面的，不僅在出貨量本身，也包括溢價（premium price）。而這個溢價在第四季顯然對我們的獲利能力帶來正面影響。並且在 2017 年也將持續影響我們的獲利能力。

To the second part of your question, that really the core of it comes to, what we said is, we expect incredibly strong growth in quarter one, and that we expect growth for the overall year. But we're not yet comfortable saying how much. And so you're asking really for some of the levers as you take a look at that. I think it's a really good question.

至於你問題的第二部分，核心其實回到我們所說的：我們預期第一季會有極為強勁的成長，且我們預期全年也會成長。但我們目前還不太有把握說成長幅度會是多少。所以你其實是在問，當我們評估這件事時，有哪些槓桿因素。我認為這是個非常好的問題。

What this comes down to is how much of our glass gets utilized per phone, and how much of our innovations get utilized per phone. And this really depends on two things: How does a customer choose to use our innovations in their designs, as well as how do our innovations perform, relative to the requirements for that use case. And it's just a little too early for us to be certain how those decisions and launch dates will be impacting our revenues.

這歸結為每支手機會使用多少我們的玻璃，以及每支手機會採用多少我們的創新。而這主要取決於兩件事：客戶在其設計中如何選擇使用我們的創新，以及相對於該使用情境的需求，我們的創新表現如何。目前對我們來說還稍早，尚無法確定這些決策與上市時程將如何影響我們的營收。

Over the sweep of time, we're very confident in our ability to see strong growth in Gorilla. In any given quarter or any given year, what the actual product launch is, and then the supply chain that is associated with that can make the actual predictability problematic, from too early in the year. This will become quite obvious, what is going to happen to us in the relatively near-term, and we'll provide better and clearer guidance for you, as our understanding of the situation clarifies.

從長期來看，我們對於Gorilla的強勁成長能力非常有信心。但在任何一個季度或任何一年，實際的產品上市時點，以及與之相關的供應鏈，都可能使得在年初就做出精準預測變得困難，因為可能為時過早。在相對不久的近期，我們將會更清楚地看到接下來會發生什麼事；隨著我們對情勢的理解更明朗，我們也會提供更好、更清晰的指引給各位。

Great. That's really helpful. I appreciate that color. And then just a quick clarification.

很好。這真的很有幫助。感謝你提供這些補充說明。接著我想快速釐清一點。

When you were talking about type fiber, you're specifically talking about the raw fiber production? And when you say you're investing, are you investing in new fiber towers, or just to have towers production that's mothballed that you're bringing online? Can you just be a little more specific on the investments there? Thank you very much.

你剛才談到type fiber時，指的是原纖（raw fiber）的生產嗎？另外你說正在投資時，是投資新的纖維拉絲塔（fiber towers），還是把先前停用（mothballed）的塔產能重新啟用？能否再更具體說明一下這些投資？非常感謝。

At this point in time, we find ourselves in the situation where customers are requesting more of all of our products than we currently have the manufacturing platform in place to support over the long-term. So what you can expect from us in this year, as you heard from Tony's guidance, is you can expect us to have some capital expansions that we'll talk about in more detail at the appropriate time in optical communications, that we're going to need to put in place to support very strong customer commitments for long-term acceleration in our revenue, in that business. So more to come as those agreements come into place, and as our actual plans of our manufacturing footprint firm up.

就目前而言，我們正處於一個情況：客戶對我們所有產品的需求都高於我們現有製造平台在長期可支撐的水準。因此，今年你們可以期待我們（如同你們從Tony的指引中聽到的）在光通訊領域會有一些資本擴產；我們會在適當的時點再更詳細說明。為了支撐客戶對該業務長期、強勁的承諾，並推動我們該業務營收的長期加速成長，這些擴產是必要的。隨著相關協議逐步到位、以及我們製造版圖的實際規劃更趨明確，後續還會有更多資訊。

Great. Thank you very much.

很好。非常感謝。

Our next question is from Patrick Newton with Stifel. Please go ahead.

下一個問題來自Stifel的Patrick Newton。請發問。

I guess digging a little bit more into the optical side, Tony, is there any way you can help us understand what the growth rate for the year would be, if you normalized for acquisitions? And then for the snapback for manufacturing? And then going a little bit more, you talked, I believe, about fiber-to-the-home being a little stronger than perhaps hyperscale. Is there any geographic spread you could give us, from where you're seeing outside strength?

我想再深入一點光學這一塊，Tony，你能否協助我們理解：如果把併購因素標準化（normalized for acquisitions），今年的成長率會是多少？以及製造端回升（snapback）的影響？另外再延伸一點，你提到我記得是FTTH（光纖到府）可能比超大規模（hyperscale）更強一些。你能否分享一下你們看到特別強勁需求的地理分布，主要在哪些地區？

Sure. I think on the overall growth standpoint, it's always hard for us to know exactly the impact of the software implementation issue that we had. But I think if you were to adjust for that, you would still see growth in the double digits. And that same applies to acquisitions.

當然。我認為就整體成長而言，我們一直很難精確判斷先前遭遇的軟體導入問題所造成的影響。但我想如果你把那個因素調整掉，你仍會看到兩位數的成長。併購的調整也是同樣的結論。

The bottom line here is that we think that our position in this market and where we play in this market, and the part of the market that is most important to us is growing very rapidly, and we think it's seen a double-digit growth. In terms to fiber-to-the-home, clearly North America is a place where we see lots of fiber to the home growth.

重點是，我們認為我們在這個市場中的定位、以及我們參與的細分領域——也就是對我們最重要的那一部分市場——正在非常快速地成長，我們認為呈現兩位數成長。至於FTTH，北美顯然是我們看到大量FTTH成長的地區。

Great. And then I think looking at the biggest delta to your earnings relative to my estimate came from R&D. You talked about benefiting from a joint development payment. Just given the magnitude of the downtick relative to expectations, could you quantify that payment and maybe walk us through any information you can provide on the payment?

很好。接著我想看一下，相對於我的預估，你們盈餘最大的差異來自研發（R&D）。你提到受惠於一筆共同開發款項（joint development payment）。考量到相對於預期下滑的幅度，你能否量化那筆款項，並說明你能提供的相關資訊？

The payment was with a customer, and I'm not going to disclose what development work we were doing with that customer. And I'm also not going to disclose how much it is. But I think, you think relative to what your expectations were and the difference, that explains most of it.

那筆款項是與某位客戶相關；我不會揭露我們與該客戶進行的是什麼開發工作。我也不會揭露金額。但我想，若你對照你原本的預期與實際差異，那基本上就能解釋其中大部分。

Yes. One of the things that I think you're going to continue to see as part of our focused portfolio, and our engagements with our customers, given our capability set, is that sometimes when they want us to solve an especially challenging problem, and that they want some form of relatively unique access on an accelerated basis to our capabilities, we're going to ask them to share in that cost up front, and so you just saw that playing out in a relatively significant way in the quarter.

是的。我認為，隨著我們聚焦型產品組合（focused portfolio）的推進，以及基於我們的能力組合與客戶互動，你們會持續看到一件事：有時候當客戶希望我們解決特別具挑戰性的問題，並希望以加速方式、以某種相對獨特的形式取得我們的能力時，我們會要求他們預先分攤部分成本；而你們在本季就看到這件事以相對顯著的方式呈現。

This has become a more standard practice for us. As it becomes more standard, I think it will be easier to model. But the core of it has to do with what we've been doing with our focus portfolio, and our market access platforms.

這已逐漸成為我們更標準的作法。當它變得更常態化後，我認為也會更容易建模。其核心在於我們聚焦型產品組合的作為，以及我們的市場進入平台（market access platforms）。

Thanks for the details. And, Wendell, you just brought up the focus portfolio again. And as I think about your life sciences business, it wasn't really spoken about much in your prepared remarks. You've had some material progress coming from that business for a couple years now, but the growth really, since your Discovery Labware acquisition has been very low. So how does this business fit with your 3-4-5 core strategy?

感謝這些細節。另外，Wendell，你剛才又提到聚焦型產品組合。我想到你們的生命科學（life sciences）業務，在你們事先準備的講稿中其實沒有談太多。這個業務這幾年確實有一些實質進展，但自從你們收購Discovery Labware之後，成長其實一直很低。那麼這個業務如何符合你們的3-4-5核心策略？

I think there's two elements to it. First of all, we continue to do better than all of our competition in that life science vessel market. So one of the key requirements to remaining in our portfolio is that management proves that being part of our portfolio allows us to lead that industry. So that part, I think that business unit, and the way in which we have interacted with our capabilities, that has proven to be quite successful.

我認為有兩個面向。首先，我們在生命科學容器（vessel）市場的表現持續優於所有競爭對手。因此，能否留在我們的產品組合中的一項關鍵要求，是管理團隊必須證明：成為我們產品組合的一部分，能讓我們在該產業保持領先。就這一點而言，我認為該事業單位以及我們與自身能力的互動方式，已被證明相當成功。

The second part, though, is to remain in our portfolio basically we have to be able to either use the market access platform that you have, or to use your asset and capability set to support our other capabilities, or our other business units. That moment is still ahead of us in Life Sciences. It needs to do both, and we're hoping to see strong progress on that in this year.

但第二個面向是：要留在我們的產品組合中，基本上我們必須能夠要嘛運用你所擁有的市場進入平台，要嘛運用你的資產與能力組合來支援我們其他能力或其他事業單位。生命科學在這方面的時點仍在未來。它需要兩者都做到，而我們希望在今年能看到這方面的強勁進展。

You've heard us speak to what we're doing in a very vague way, to what we're doing in pharmaceutical packaging, and that uses that platform. I think if that is very successful and we can basically reuse big hunks of that market access platform in life sciences, then we'll be delighted with what's in our portfolio. If not, we'll put that into our overall judgment of our portfolio as we do our normal reflection on what is the best way to maximize the value for our shareholders over the long-term.

你們也聽過我們以相當概略的方式談到我們在藥品包裝（pharmaceutical packaging）方面所做的事，而那會使用到該平台。我認為如果那非常成功，且我們基本上能在生命科學中重複利用該市場進入平台的很大一部分，那我們會對產品組合中的配置感到非常滿意。如果不是，我們會把這點納入對整體產品組合的判斷中；如同我們一貫的檢視流程，思考在長期如何以最佳方式為股東極大化價值。

Thank you for the details. Thanks for taking my questions. Good luck.

感謝這些細節。謝謝你回答我的問題。祝順利。

Our next question is from Vijay Bhagavath with Deutsche Bank. Please go ahead.

下一個問題來自德意志銀行（Deutsche Bank）的Vijay Bhagavath。請發問。

The question is on the auto glass business. Do you plan on reporting any additional metrics going forward, to help us better track and model progress in auto glass? And do we see auto glass as a major growth opportunity for the Company?

問題關於汽車玻璃業務。未來你們是否計畫揭露更多指標，以協助我們更好地追蹤並建模汽車玻璃的進展？以及我們是否將汽車玻璃視為公司一個主要的成長機會？

And also when can we see Gorilla Glass going down market into mainstream cars? Would it be next year? And then also thoughts on carving out auto glass as a separate business unit, given its own culture, and then associated sales and marketing, R&D to help scale the business? Thanks.

另外，我們何時能看到Gorilla Glass往下滲透到主流車款？會是明年嗎？還有，考量到汽車玻璃有其自身文化，以及需要相應的銷售與行銷、研發來協助規模化，你們對把汽車玻璃切分為獨立事業單位有何看法？謝謝。

So to the core of your question is, when will key metrics be available to track our progress in the penetration into automotive glazing and interiors, so that this actually can become a more predictable -- or become a predictable growth driver for Corning. And then the second part of your question that I heard is if we break it into a different business unit.

所以你問題的核心是：我們何時會提供關鍵指標，讓大家可以追蹤我們在汽車玻璃（automotive glazing）與內裝（interiors）滲透的進展，讓這件事實際上能成為Corning更可預測——或成為一個可預測的成長驅動因素。而你問題的第二部分，我聽到的是：我們是否會把它拆分成不同的事業單位。

So let's take the second part first. We plan on reusing our automotive market access platform to service this market, and basically to repurpose elements of our manufacturing and engineering platform that are already in place as part of our portfolio to serve this market.

那我們先從第二部分談起。我們計畫重複利用我們的汽車市場進入平台來服務這個市場，基本上是把我們投資組合中既有、已到位的製造與工程平台的部分要素重新定位，用來服務這個市場。

We'll develop market specialists, as well. But one of the things that reduces the cost of this innovation, and increases the probability of success, is that ability to use our unique capability set to basically attack a market with existing resources. Augmented, of course, by specialists, right? And that's the way we're going to approach it.

我們也會培養市場專家。但能降低這項創新的成本、並提高成功機率的一個因素，是我們能運用自身獨特的能力組合，基本上用既有資源去攻打一個市場。當然，再加上專家來補強，對吧？這就是我們將採取的方式。

As to the metrics, I think it's too early for us to lay out that as you look at these metrics, this will become in this way a predictable growth driver. I think we need more penetration before we get to the point of the S curve that we'll be able to segment the market in some useful way for you, so that we give you more signal, as opposed to noise.

至於衡量指標，我認為現在還太早，無法提出說你看這些指標，這就會以某種方式成為可預測的成長驅動力。我想在我們到達 S 曲線的那個階段之前，還需要更高的滲透率；屆時我們才能以對你有用的方式來切分市場，提供更多訊號而不是雜訊。

What we look at internally is something very simple. It's winning customer platforms. To date, those platforms have been more in the high end of vehicles where they're trying to get the highest performance and are less cost sensitive. I think if it stays in that piece of the market, this will be a good but relatively small revenue opportunity. If, indeed, we can attack an every day car platform, as you are asking, this will become a very large growth platform for us.

我們內部看的其實很簡單。就是贏得客戶的平台案。截至目前，這些平台多半是在高階車款上，因為他們追求最高性能，對成本的敏感度較低。我認為如果只停留在這一塊市場，這會是一個不錯但相對較小的營收機會。但如果我們確實能如你所問，切入一般日常車款的平台，這就會成為我們非常大的成長平台。

It's just too early to tell when that is going to happen. Do I think it's going to happen? Yes, sir. Do I know it's going to happen? Not yet, sir.

只是現在還太早，無法判斷那會在什麼時候發生。我認為會發生嗎？是的，先生。我知道一定會發生嗎？目前還不知道，先生。

Perfect. I can't wait to drive a car with Gorilla Glass. Thanks.

完美。我等不及要開一台配有 Gorilla Glass 的車了。謝謝。

Our next question is from Doug Clark with Goldman Sachs. Please go ahead.

下一個問題來自高盛的 Doug Clark。請開始。

A two parter. First one is on the price declines in the display business. I think, Tony, you mentioned that 90% of volumes are contracted for all of 2017. Is that percentage higher than years in the past?

我有兩個部分的問題。第一個是關於顯示器業務的價格下滑。我想 Tony，你提到 2017 年全年有 90% 的出貨量已簽約。這個比例是否高於過去幾年？

And, secondly, related to that, the moderation versus 2016, does this imply a less than 10% year-over-year price decline for the full year? And then my second part question is also on the display business, but more so on the panel maker capacity fluctuations between LCD and OLED. It sounds like that's already factored into first-quarter guidance, and your expectations is that alleviates by the second half of the year. Is that the correct cadence that we should expect to see volumes pick back up, to the extent that there's any depressant are right now?

第二個相關問題是，相較於 2016 年的趨緩，是否意味著全年同比價格下滑會低於 10%？另外我第二部分的問題也與顯示器業務有關，但更聚焦在面板廠在 LCD 與 OLED 之間的產能波動。聽起來這已經反映在第一季的指引中，而你們預期下半年會緩解。這是否是我們應該預期的正確節奏：在目前若有任何壓抑因素的情況下，出貨量會回升？

So the answer to your second question is correct. That is the way that we expect it to play out. In terms of price declines and the amount of volume we have under contract, usually as we enter into the year, we have a high percentage under contract.

所以你第二個問題的答案是正確的。這就是我們預期的發展方式。至於價格下滑以及我們已簽約的量，通常在我們進入新的一年時，會有很高比例已在合約之下。

So 90%, I think, was important for everybody to remember, that's the way this business works. And then relative to price declines more moderate, somewhere in the 10% range is how that would work out.

所以我認為 90% 這個數字對大家來說很重要，請記得這就是這門生意的運作方式。至於價格下滑較為溫和，大約會落在 10% 左右。

Okay. That's helpful. And then one quick follow-up additionally is on FX. I'm wondering if you can provide either an update on expected constant currency rate for 2018 or when we should look for that detail?

好的。這很有幫助。另外還有一個很快的追問，是關於外匯。我想請問你們是否能更新一下 2018 年預期的固定匯率（constant currency rate），或我們應該何時可以看到這方面的細節？

I think that when we entered into our exchange contracts originally in 2014, we said they would be for three years, and that we would stay at a constant rate of 99%. We have hedged about 70% of our exposure from 2016 to 2022 at about a $1.06 rate, but we're not ready to talk about the constant rate for 2018 yet, in part because we're looking at either other opportunities for us to hedge, and we're also looking at different ways that we might hedge, as opposed to the FX contracts that we're using today. So I think when we made the FX rate change previously, we did it towards the end of the year. And I think that's probably the timing when you would expect us to talk about it again, or maybe even at the beginning of 2018.

我想當我們在 2014 年最初簽訂外匯合約時，我們說過合約期限為三年，且我們會維持 99% 的固定匯率。我們已針對 2016 到 2022 年約 70% 的曝險進行避險，匯率大約在 1.06 美元，但我們還沒準備好談 2018 年的固定匯率，部分原因是我們正在評估是否有其他避險機會，也在研究可能採用不同的避險方式，而不僅限於我們目前使用的外匯合約。所以我想，之前我們做外匯固定匯率的調整，是在接近年底時進行。我認為你可以預期我們大概也會在那個時間點再談一次，或甚至在 2018 年初。

Great. Thanks a lot.

很好。非常感謝。

Thanks, Todd. And, John, I'm afraid we're out of time for questions. Wendell, any closing comments?

謝謝，Todd。John，不好意思，我們提問時間已到。Wendell，有沒有結語？

Let me just close out the call by reiterating that we're very pleased with the progress on our strategy and capital allocation framework, since we announced it. We believe we are creating significant value for our shareholders, and we look forward to updating you on our framework progress and results throughout 2017. Thanks to everyone for listening.

我最後用幾句話結束本次電話會議：自從我們宣布策略與資本配置框架以來，我們對其進展感到非常滿意。我們相信我們正在為股東創造顯著價值，並期待在 2017 年持續向各位更新我們框架的進展與成果。感謝大家收聽。

Thanks, Wendell, and thank you all for joining us today. Before I close, I wanted to let everyone know that today's slide deck has an appendix that recaps some of the full-year data that you might find useful.

謝謝你，Wendell，也謝謝各位今天加入我們。在我結束之前，我想讓大家知道，今天的簡報投影片有一個附錄，回顧了一些你可能會覺得有用的全年數據。

Looking out to next month, we'll be meeting with investors at the Goldman Sachs Technology and Internet Conference on February 14, and the Morgan Stanley TMT conference on February 28. Please let us know if you'll be attending.

展望下個月，我們將在 2 月 14 日參加高盛科技與網際網路研討會，並在 2 月 28 日參加摩根士丹利 TMT 研討會與投資人會面。如果你會出席，請告訴我們。

Our annual Investor Day this year is scheduled for June 16 in New York City. We'll be sending out more details in the coming weeks.

我們今年的年度投資人日預定於 6 月 16 日在紐約市舉行。我們會在接下來幾週發出更多細節。

And, finally, a replay of today's call will be available on our site for one year starting later this morning. There's also a telephone replay available for the next two weeks, and details are in today's news release.

最後，今天電話會議的重播將自今天稍晚起在我們網站上提供，為期一年。另外也有電話重播可供接下來兩週使用，相關細節已載於今天的新聞稿。

Once again, thank you all for joining us. John, that concludes our call. Please disconnect all lines.

再次感謝各位加入我們。John，我們的電話會議到此結束。請斷開所有線路。