Post-bankruptcy asbestos defendant doing well

Corning, Inc., heir to one of the major corporate defendants in asbestos litigation, emerged from bankruptcy having left its obligations and debts to thousands of poisoned workers in a trust fund. Many observers believe that the trust fund is woefully inadequate. After emerging from bankruptcy, minus its asbestos debts, Corning, like other asbestos companies that sought refuge in faux bankruptcy, continues to be profitable.

From Rich Smith, July 31, 2007.

–Corning earned $0.30 per share in Q2. It would have earned $0.34, but for a charge to earnings. The value of the stock the company had contributed to an asbestos litigation settlement fund rose more quickly than expected. That worked out to a 6% decline in earnings per share.

–Sales grew 12.4%, and the firm earned a record 46.5% gross margin on those sales.

–Operating margin dropped precipitously — but illusorily, since the asbestos litigation charge mentioned above combined with a nearly equal-and-opposite benefit in last year’s Q2 to magnify the difference in operating margin. Likewise with the net margin, with dropped to 34.5% from last year’s 40.8%.

Additional information about asbestos medical and legal options are available from the Law Office of Roger G. Worthington, P.C., www.mesothel.com.

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