MIDLAND, Mich.--(BUSINESS WIRE)--Dow Corning Corp. today announced sales of $4.64 billion and net income of $288 million through the first three quarters of 2012. Dow Corning’s year-to-date sales and net income were down 5 percent and 47 percent, respectively, compared to 2011 as oversupply, economic volatility and high raw material costs continue to challenge the company’s profits. Additional information about Dow Corning’s financial results:
Third Quarter Results
- Sales were $1.55 billion, 7 percent lower than last year’s third quarter.
- Polysilicon prices remain depressed due to industry oversupply, impacting the company’s Hemlock Semiconductor Group joint ventures.
- Sales in Europe were significantly lower due to continuing economic volatility.
- Net income was $97 million, 45 percent lower than last year’s third quarter.
- Sales were $4.64 billion, 5 percent lower than last year.
- Net income was $288 million, 47 percent lower than last year.
|Q3 2012||Q3 2011||% Change||2012||2011||% Change|
|Sales (in billions)||$||1.55||$||1.66||-7||%||$||4.64||$||4.91||-5||%|
|Net income (in millions)||$||97||$||177||-45||%||$||288||$||547||-47||%|
|Adjusted net income* (in millions)||$||77||$||173||-56||%||$||269||$||536||-50||%|
|*Adjusted net income is a non-GAAP financial measure which excludes certain unusual items. The reconciliation|
|between GAAP and non-GAAP measures is shown in the table following the news release.|
Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:
- “Oversupply in both the silicone and polycrystalline silicon industries, as well as high raw material costs have impacted our financial performance throughout 2012, and these conditions are likely to last well into 2013.”
- “Our Hemlock Semiconductor joint ventures continue to be challenged by global oversupply in the polycrystalline silicon markets. Additionally, the economic and political uncertainty surrounding the solar industry is also impacting Hemlock Semiconductor’s performance.”
- “Dow Corning’s response to the volatile economy and oversupplied marketplace is to focus on delivering innovative silicon-based products and solutions to our customers that differentiate us from our competitors.”
- “We also continue to pursue opportunities to increase efficiency and reduce costs in our operations, ultimately protecting the competitive cost position Dow Corning has earned through its nearly 70 years of experience.”
About Dow Corning
Dow Corning (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company’s Dow Corning® and XIAMETER® brands. Dow Corning is equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning’s annual sales are outside the United States.
About Hemlock Semiconductor Group
Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of several joint venture companies among Dow Corning Corporation, Shin-Etsu Handotai, and Mitsubishi Materials Corporation. Hemlock Semiconductor is a leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices, and solar cells and modules. Hemlock Semiconductor began its operations in 1961.
|Dow Corning Corporation|
|Selected Financial Information|
|(in millions of U. S. dollars)|
|Consolidated Income Statement Data|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Attributable to Dow Corning||$||96.6||$||177.0||$||288.4||$||546.5|
|Adjustment for Long-Term Sales Contracts1||$||(19.7||)||$||(19.7||)|
|Adjustment for AEMC2, net||$||-||$||(4.0||)||$||-||$||(10.5||)|
|Adjusted Net Income3||$||76.9||$||173.0||$||268.7||$||536.0|
|1||The three and nine month periods ended September 30, 2012 included an adjustment for the gain on long-term sales agreements.|
The three and nine month periods ended September 30, 2011 included a tax benefit related to Advanced Energy Manufacturing Credits, net of the noncontrolling interests' share.
|3||Adjusted Net Income is a non-GAAP financial measure which excludes certain unusual items and which reconciles to Net Income as shown.|
|Consolidated Balance Sheet Data|
|September 30, 2012||December 31, 2011|
|Property, Plant and Equipment, Net||7,747.0||7,380.3|
|Liabilities and Equity|
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