Key Second Quarter Financial Highlights
- Revenue of
$1.786 billion - Gross margin of 28.3% and Non-IFRS gross margin(1) of 29.9%
- Operating margin of 9.7% and Non-IFRS operating margin(1) of 16.7%
- Net income of
$167 million and Non-IFRS net income(1) of$256 million - Diluted earnings per share of
$0.30 and Non-IFRS diluted earnings per share(1) of$0.46 - Non-IFRS adjusted EBITDA(1) of
$587 million - Ending cash, cash equivalents and marketable securities of
$3.3 billion - Net cash provided by operating activities of
$405 million and Non-IFRS adjusted free cash flow(1) of$(3) million
"GF delivered strong results in the second quarter, with revenue and Non-IFRS gross margin exceeding the high end of our guidance ranges,” said
Recent Business Highlights
- In
July 2026 , GF signed a letter of intent with theU.S. Department of Commerce for a$300 million award to accelerateU.S . silicon photonics leadership. Under the LOI, the Department’sCHIPS Research and Development Office is expected to award GF$300 million to advance next-generation optical materials, wafer technologies and advanced packaging, reinforcingU.S . leadership in a technology essential to AI infrastructure.
- In
July 2026 , GF completed the acquisition of Photeon Technologies' integrated voltage regulator (IVR) business, adding differentiated IVR technology, specialized engineering talent, and expanded R&D capabilities. The acquisition complements GF's existing BCD, GaN and integrated inductor technologies and expands the company's capabilities in power delivery solutions for AI data center applications.
- In
June 2026 , GF completed its previously-announced acquisition of Synopsys’ ARC Processor IP Solutions business, which together with MIPS brings together RISC-V processor IP, software tools, custom design and advanced manufacturing into a single offering. This acquisition further enables GF as a leader in RISC-V IP solutions and establishes the Company as a holistic technology partner, offering customers a software-to-silicon capability for Physical AI and beyond.
- In
May 2026 , GF launched Quantum Technology Solutions (QTS), building upon over a decade of sustained investment in cryogenic CMOS, advanced packaging and materials science. Accelerated by an expected$375 million grant by theU.S. Department of Commerce , pursuant to a letter of intent, and supported by several of the leading quantum companies in the world, GF plans to manufacture at scale the complete hardware solutions that will power real-world quantum computing of the future.
Dividend Payment
On
| (1) | See “Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. |
| Summary Quarterly Results | ||||||||||||||||||||||||||
| (Unaudited, in millions, except per share amounts and wafer shipments) | ||||||||||||||||||||||||||
| Year-over-Year | Sequential | |||||||||||||||||||||||||
| Q2 2026 | Q1 2026 | Q2 2025 | Q2 2026 vs Q2 2025 | Q2 2026 vs Q1 2026 | ||||||||||||||||||||||
| Net revenue | $ | 1,786 | $ | 1,634 | $ | 1,688 | $ | 98 | 6 | % | $ | 152 | 9 | % | ||||||||||||
| Gross profit | $ | 505 | $ | 451 | $ | 408 | $ | 97 | 24 | % | $ | 54 | 12 | % | ||||||||||||
| Gross margin | 28.3 | % | 27.6 | % | 24.2 | % | +410bps | +70bps | ||||||||||||||||||
| Non-IFRS gross profit(1) | $ | 534 | $ | 474 | $ | 425 | $ | 109 | 26 | % | $ | 60 | 13 | % | ||||||||||||
| Non-IFRS gross margin(1) | 29.9 | % | 29.0 | % | 25.2 | % | +470bps | +90bps | ||||||||||||||||||
| Operating profit | $ | 174 | $ | 180 | $ | 196 | $ | (22 | ) | (11 | )% | $ | (6 | ) | (3 | )% | ||||||||||
| Operating margin | 9.7 | % | 11.0 | % | 11.6 | % | (190)bps | (130)bps | ||||||||||||||||||
| Non-IFRS operating profit(1) | $ | 298 | $ | 271 | $ | 258 | $ | 40 | 16 | % | $ | 27 | 10 | % | ||||||||||||
| Non-IFRS operating margin(1) | 16.7 | % | 16.6 | % | 15.3 | % | +140bps | +10bps | ||||||||||||||||||
| Net income | $ | 167 | $ | 104 | $ | 228 | $ | (61 | ) | (27 | )% | $ | 63 | 61 | % | |||||||||||
| Net income margin | 9.4 | % | 6.4 | % | 13.5 | % | (410)bps | +300bps | ||||||||||||||||||
| Non-IFRS net income(1) | $ | 256 | $ | 227 | $ | 234 | $ | 22 | 9 | % | $ | 29 | 13 | % | ||||||||||||
| Non-IFRS net income margin (1) | 14.3 | % | 13.9 | % | 13.9 | % | +40bps | +40bps | ||||||||||||||||||
| Diluted earnings per share ("EPS") | $ | 0.30 | $ | 0.18 | $ | 0.41 | $ | (0.11 | ) | (27 | )% | $ | 0.12 | 67 | % | |||||||||||
| Non-IFRS diluted EPS(1) | $ | 0.46 | $ | 0.40 | $ | 0.42 | $ | 0.04 | 10 | % | $ | 0.06 | 15 | % | ||||||||||||
| Non-IFRS adjusted EBITDA(1) | $ | 587 | $ | 561 | $ | 585 | $ | 2 | — | % | $ | 26 | 5 | % | ||||||||||||
| Non-IFRS adjusted EBITDA margin(1) | 32.9 | % | 34.3 | % | 34.7 | % | (180)bps | (140)bps | ||||||||||||||||||
| Cash from operating activities | $ | 405 | $ | 542 | $ | 431 | $ | (26 | ) | (6 | )% | $ | (137 | ) | (25 | )% | ||||||||||
| Wafer shipments (300mm equivalent) (in thousands) | 625 | 579 | 581 | 44 | 8 | % | 46 | 8 | % | |||||||||||||||||
(1) See “Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful.
| Summary of Third Quarter 2026 Guidance(1) | |||
| (Unaudited, in millions, except per share amounts) | |||
| IFRS | Share-Based Compensation(3) | Non-IFRS(2) | |
| Net revenue | |||
| Gross margin(2) | 29.5% ± 100bps | ~100bps | 30.5% ± 100bps |
| Operating expenses(2) | |||
| Operating margin(2) | 12.7% ± 170bps | ~400bps | 16.7% ± 170bps |
| Diluted EPS(2)(4) | |||
| Fully Diluted Share Count | ~556 | ||
| (1) | The Guidance provided contains forward-looking statements as defined in the |
| (2) | Non-IFRS gross margin, Non-IFRS operating expenses, Non-IFRS operating margin and Non-IFRS diluted EPS are Non-IFRS measures and, for purposes of the Guidance only, are defined as gross profit as a percent of revenue, operating expenses, operating profit as a percent of revenue, and diluted EPS, all before share-based compensation, respectively. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. |
| (3) | We expect share-based compensation of |
| (4) | Included in IFRS and Non-IFRS diluted EPS is net interest income (expense) and other income (expense) which we estimate will be between |
| Consolidated Statements of Operations | |||||||
| (Unaudited, in millions, except per share amounts) | |||||||
| Three Months Ended | |||||||
| Net revenue | $ | 1,786 | $ | 1,688 | |||
| Cost of revenue | 1,281 | 1,280 | |||||
| Gross profit | $ | 505 | $ | 408 | |||
| Operating expenses: | |||||||
| Research and development | 174 | 134 | |||||
| Selling, general and administrative | 157 | 78 | |||||
| Operating expenses | $ | 331 | $ | 212 | |||
| Operating profit | $ | 174 | $ | 196 | |||
| Finance income (expense), net | 9 | 17 | |||||
| Other income (expense), net | 13 | 8 | |||||
| Income tax (expense) benefit | (29 | ) | 7 | ||||
| Net income | $ | 167 | $ | 228 | |||
| EPS: | |||||||
| Basic | $ | 0.30 | $ | 0.41 | |||
| Diluted | $ | 0.30 | $ | 0.41 | |||
| Shares used in EPS calculation: | |||||||
| Basic | 549 | 555 | |||||
| Diluted | 556 | 557 | |||||
| Condensed Consolidated Statements of Financial Position | ||||||||
| (Unaudited, in millions) | ||||||||
| As of | ||||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 1,087 | $ | 1,809 | ||||
| Marketable securities | 1,270 | 1,241 | ||||||
| Receivables, prepayments and other | 1,489 | 1,578 | ||||||
| Inventories | 1,622 | 1,577 | ||||||
| Current assets | $ | 5,468 | $ | 6,205 | ||||
| Property, plant and equipment, net | $ | 7,098 | $ | 7,223 | ||||
| 1,861 | 1,368 | |||||||
| Marketable securities | 946 | 939 | ||||||
| Right-of-use assets | 578 | 569 | ||||||
| Other assets | 937 | 837 | ||||||
| Non-current assets | $ | 11,420 | $ | 10,936 | ||||
| Total assets | $ | 16,888 | $ | 17,141 | ||||
| Liabilities and equity: | ||||||||
| Current portion of long-term debt | $ | 98 | $ | 86 | ||||
| Other current liabilities | 2,111 | 2,282 | ||||||
| Current liabilities | $ | 2,209 | $ | 2,368 | ||||
| Non-current portion of long-term debt | $ | 1,024 | $ | 1,065 | ||||
| Non-current portion of lease obligations | 495 | 487 | ||||||
| Other liabilities | 1,286 | 1,238 | ||||||
| Non-current liabilities | $ | 2,805 | $ | 2,790 | ||||
| Total liabilities | $ | 5,014 | $ | 5,158 | ||||
| Shareholders' equity: | ||||||||
| Common stock / additional paid-in capital | $ | 23,937 | $ | 24,231 | ||||
| Accumulated deficit | (12,178 | ) | (12,381 | ) | ||||
| Accumulated other comprehensive income | 59 | 78 | ||||||
| Non-controlling interests | 56 | 55 | ||||||
| Total liabilities and equity | $ | 16,888 | $ | 17,141 | ||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited, in millions) | ||||||||
| Three Months Ended | ||||||||
2026 | 2025 | |||||||
| Operating Activities: | ||||||||
| Net income | $ | 167 | $ | 228 | ||||
| Depreciation and amortization | 307 | 335 | ||||||
| Finance (income) expense, net and other | (14 | ) | (8 | ) | ||||
| Deferred income taxes | 18 | (20 | ) | |||||
| Net change in working capital | (115 | ) | (136 | ) | ||||
| Other non-cash operating activities | 42 | 32 | ||||||
| Net cash provided by operating activities | $ | 405 | $ | 431 | ||||
| Investing Activities: | ||||||||
| Purchases of property, plant and equipment and intangible assets | $ | (411 | ) | $ | (159 | ) | ||
| Acquisitions, net of cash acquired | (440 | ) | — | |||||
| Net sales (purchases) of marketable securities | (294 | ) | (23 | ) | ||||
| Other investing activities | 26 | (25 | ) | |||||
| Net cash used in investing activities | $ | (1,119 | ) | $ | (207 | ) | ||
| Financing Activities: | ||||||||
| Proceeds from issuance of equity instruments, net of taxes paid | $ | (3 | ) | $ | 1 | |||
| Proceeds (repayment) of debt, net | (45 | ) | (36 | ) | ||||
| Net cash used in financing activities | $ | (48 | ) | $ | (35 | ) | ||
| Effect of exchange rate changes | — | 5 | ||||||
| Net change in cash and cash equivalents | $ | (762 | ) | $ | 194 | |||
| Cash and cash equivalents at the beginning of the period | 1,849 | 1,596 | ||||||
| Cash and cash equivalents at the end of the period | $ | 1,087 | $ | 1,790 | ||||
| Reconciliation of IFRS to Non-IFRS | ||||||||||||||||||||||||||||||||
| (Unaudited, in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Gross profit | Selling, general & administrative | Research & development | Operating profit | Other income (expense) | Income tax (expense) benefit | Net income | Diluted EPS | |||||||||||||||||||||||||
| As Reported | $ | 505 | $ | 157 | $ | 174 | $ | 174 | $ | 13 | $ | (29 | ) | $ | 167 | $ | 0.30 | |||||||||||||||
| IFRS margins(1) | 28.3 | % | 9.7 | % | 9.4 | % | ||||||||||||||||||||||||||
| Share-based compensation | 23 | (38 | ) | (25 | ) | 86 | — | (3 | ) | 83 | 0.15 | |||||||||||||||||||||
| Structural optimization(2) | 3 | (4 | ) | — | 7 | — | (2 | ) | 5 | 0.01 | ||||||||||||||||||||||
| Amortization of acquired intangibles and other acquisition related charges | 3 | (23 | ) | (5 | ) | 31 | — | — | 31 | 0.06 | ||||||||||||||||||||||
| Revaluation and gain on sale of equity investments | — | — | — | — | (25 | ) | 5 | (20 | ) | (0.04 | ) | |||||||||||||||||||||
| Tax matters(3) | — | — | — | — | — | (10 | ) | (10 | ) | (0.02 | ) | |||||||||||||||||||||
| Non-IFRS measures(1) | $ | 534 | $ | 92 | $ | 144 | $ | 298 | $ | (12 | ) | $ | (39 | ) | $ | 256 | $ | 0.46 | ||||||||||||||
| Non-IFRS margins(1) | 29.9 | % | 16.7 | % | 14.3 | % | ||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||
| Gross profit | Selling, general & administrative | Research & development | Operating profit | Other income (expense) | Income tax (expense) benefit | Net income | Diluted EPS | ||||||||||||||||||||||||
| As Reported | $ | 451 | $ | 139 | $ | 132 | $ | 180 | $ | (10 | ) | $ | (81 | ) | $ | 104 | $ | 0.18 | |||||||||||||
| IFRS margins(1) | 27.6 | % | 11.0 | % | 6.4 | % | |||||||||||||||||||||||||
| Share-based compensation | 16 | (32 | ) | (15 | ) | 63 | — | (2 | ) | 61 | 0.11 | ||||||||||||||||||||
| Structural optimization(2) | 2 | (3 | ) | (1 | ) | 6 | — | (1 | ) | 5 | 0.01 | ||||||||||||||||||||
| Amortization of acquired intangibles and other acquisition related charges | 5 | (15 | ) | (2 | ) | 22 | — | (3 | ) | 19 | 0.03 | ||||||||||||||||||||
| Tax matters(3) | — | — | — | — | — | 38 | 38 | 0.07 | |||||||||||||||||||||||
| Non-IFRS measures(1) | $ | 474 | $ | 89 | $ | 114 | $ | 271 | $ | (10 | ) | $ | (49 | ) | $ | 227 | $ | 0.40 | |||||||||||||
| Non-IFRS margins(1) | 29.0 | % | 16.6 | % | 13.9 | % | |||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Gross profit | Selling, general & administrative | Research & development | Operating profit | Other income (expense) | Income tax (expense) benefit | Net income | Diluted EPS | |||||||||||||||||||||||||
| As Reported | $ | 408 | $ | 78 | $ | 134 | $ | 196 | $ | 8 | $ | 7 | $ | 228 | $ | 0.41 | ||||||||||||||||
| IFRS margins(1) | 24.2 | % | 11.6 | % | 13.5 | % | ||||||||||||||||||||||||||
| Share-based compensation | 17 | (29 | ) | (8 | ) | 54 | — | (2 | ) | 52 | 0.09 | |||||||||||||||||||||
| Structural optimization(2) | — | (5 | ) | — | 5 | (24 | ) | — | (19 | ) | (0.03 | ) | ||||||||||||||||||||
| Amortization of acquired intangibles and other acquisition related charges | — | (2 | ) | (1 | ) | 3 | — | — | 3 | 0.01 | ||||||||||||||||||||||
| Litigation claims | — | — | — | — | 9 | (1 | ) | 8 | 0.01 | |||||||||||||||||||||||
| Tax matters(3) | — | — | — | — | — | (38 | ) | (38 | ) | (0.07 | ) | |||||||||||||||||||||
| Non-IFRS measures(1) | $ | 425 | $ | 42 | $ | 125 | $ | 258 | $ | (7 | ) | $ | (34 | ) | $ | 234 | $ | 0.42 | ||||||||||||||
| Non-IFRS margins(1) | 25.2 | % | 15.3 | % | 13.9 | % | ||||||||||||||||||||||||||
| (1) | See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. |
| (2) | Structural optimization represents costs associated with employee workforce reductions, manufacturing footprint alignment and liquidation charges. |
| (3) | Includes |
| Reconciliation of IFRS to Non-IFRS | ||||||||||||
| Non-IFRS Adjusted Free Cash Flow(1) | ||||||||||||
| (Unaudited, in millions) | ||||||||||||
| Three Months Ended | ||||||||||||
| Net cash provided by operating activities | $ | 405 | $ | 542 | $ | 431 | ||||||
| Less: Purchases of property, plant and equipment and intangible assets | (411 | ) | (312 | ) | (159 | ) | ||||||
| Add: Proceeds from government grants | 3 | 3 | 5 | |||||||||
| Non-IFRS total capital expenditures net of proceeds from government grants(1) | $ | (408 | ) | (309 | ) | (154 | ) | |||||
| Non-IFRS adjusted free cash flow(1) | $ | (3 | ) | $ | 233 | $ | 277 | |||||
| Non-IFRS adjusted free cash flow margin(1) | (0.2 | )% | 14.3 | % | 16.4 | % | ||||||
(1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful.
| Reconciliation of IFRS to Non-IFRS | ||||||||||||
| Non-IFRS Adjusted EBITDA(1) | ||||||||||||
| (Unaudited, in millions) | ||||||||||||
| Three Months Ended | ||||||||||||
| Net revenue | $ | 1,786 | $ | 1,634 | $ | 1,688 | ||||||
| Net income | 167 | 104 | 228 | |||||||||
| Net income margin | 9.4 | % | 6.4 | % | 13.5 | % | ||||||
| Depreciation and amortization | 307 | 311 | 335 | |||||||||
| Finance expense | 23 | 22 | 22 | |||||||||
| Finance income | (32 | ) | (37 | ) | (39 | ) | ||||||
| Income tax expense (benefit) | 29 | 81 | (7 | ) | ||||||||
| Share-based compensation | 86 | 63 | 54 | |||||||||
| Structural optimization | 7 | 6 | (19 | ) | ||||||||
| Revaluation and gain on sale of equity investments | (25 | ) | — | — | ||||||||
| Litigation claims | — | — | 9 | |||||||||
| Other acquisition related charges | 25 | 11 | 2 | |||||||||
| Non-IFRS adjusted EBITDA(1) | $ | 587 | $ | 561 | $ | 585 | ||||||
| Non-IFRS adjusted EBITDA margin(1) | 32.9 | % | 34.3 | % | 34.7 | % | ||||||
(1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful.
Financial Measures (Non-IFRS)
In addition to the financial information presented in accordance with International Financial Reporting Standards ("IFRS"), this press release includes the following Non-IFRS financial measures: Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS operating expense, Non-IFRS net income, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense), Non-IFRS diluted earnings per share (“EPS”), Non-IFRS adjusted EBITDA, Non-IFRS adjusted free cash flow, Non-IFRS total capital expenditures net of proceeds from government grants, and any related margins. We define each of Non-IFRS gross profit, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS operating profit, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense) and Non-IFRS net income as gross profit, selling, general and administrative, research and development, operating profit, other income (expense), income tax benefit (expense), and net income (loss), respectively, adjusted for share-based compensation, structural optimization, amortization of acquired intangibles and other acquisition related charges, impairment charges, revaluation of equity investments, restructuring charges, litigation claims, tax matters, and any associated income tax effects. We define Non-IFRS operating expense as Non-IFRS gross profit minus Non-IFRS operating profit. We define Non-IFRS diluted EPS as Non-IFRS net income divided by the diluted shares outstanding. We define Non-IFRS adjusted free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets plus proceeds from government grants related to capital expenditures. We define Non-IFRS total capital expenditures net of proceeds from government grant as purchases of property, plant and equipment and intangible assets less proceeds of government grants. We define Non-IFRS adjusted EBITDA as net income adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amortization, share-based compensation, restructuring charges, impairment charges, revaluation of equity investments, structural optimization, litigation claims and acquisition related charges. We define each of Non-IFRS gross margin, Non-IFRS operating margin, Non-IFRS net income margin, Non-IFRS adjusted free cash flow margin and Non-IFRS adjusted EBITDA margin as Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS adjusted free cash flow and Non-IFRS adjusted EBITDA, respectively, divided by net revenue. Any adjustments described above that are zero for a given period are excluded from the “Reconciliation of IFRS to Non-IFRS” table. See "Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure.
We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS financial measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Management believes that Non-IFRS adjusted free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period.
Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as comparative measures.
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Forward-looking Statements and Third Party Data
This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the
Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2025 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission (SEC). Copies of our
For further information, please contact:
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