MIDLAND, Mich.--(BUSINESS WIRE)--Dow Corning Corp. today announced second quarter sales of $1.42 billion and net income of $113 million. Adjusted net income in the second quarter increased 27 percent to $127 million. Through the first half of the year, Dow Corning’s adjusted net income, which excludes unusual items, has increased 9 percent despite decreased sales impacted largely by the strong United States dollar.
Adjusted net income for 2015 and 2014 excluded the impact of a derivative contract and gains on long term sales agreements. Additional information about Dow Corning’s financial results:
Second Quarter Results
- Sales were $1.42 billion, 5 percent lower than last year’s second quarter.
- Despite the headwinds caused by the strengthening U.S. dollar Dow Corning experienced significant growth in its most profitable Silicones segment product lines, especially for materials sold in electronics, packaging, high-performance building and healthcare applications.
- The strengthening U.S. dollar accounted for a nearly 6 percent revenue decrease in the Silicones segment.
- Sales were $2.79 billion, 8 percent lower than the first half of last year; the decrease is largely driven by the strong U.S. dollar.
- Adjusted net income was $228 million, 9 percent higher than the first half of last year.
- Sales from Dow Corning’s Polysilicon segment have decreased for the first half of the year as the timing of customers taking product under long-term contracts resulted in fewer shipments.
|Q2 2015||Q2 2014||% Change||2015||2014||% Change|
|Sales (in billions)||$||1.42||$||1.50||-5||%||$||2.79||$||3.02||-8||%|
|Net income (in millions)||$||113||$||109||3||%||$||298||$||300||-1||%|
|Adjusted net income* (in millions)||$||127||$||100||27||%||$||228||$||209||9||%|
|*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:
- “This strong first half performance is remarkable given the currency headwinds we face and amidst continued oversupply and volatility in the silicones and polysilicon industries.”
- “Dow Corning continues to advance on our strategy to increase profitability, especially in our Silicones segment. We’re doing this by delivering more of our highly differentiated and innovative materials to customers that value the expertise and innovation we bring to the table as the silicones industry leader.”
- “Dow Corning’s first half results continued to be impacted by fewer polysilicon shipments to long-term contract customers. These contracts have a degree of variability when customers take their product and recent order patterns have resulted in customer orders being concentrated late last year.”
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 (hscpoly.com) is comprised of several joint venture companies owned in majority by Dow Corning 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 June 30,||Six Months Ended June 30,|
|Attributable to Dow Corning||$||113.0||$||109.2||$||298.4||$||300.1|
|Adjustment for Long-Term Sales Agreements||$||-||$||-||$||(97.9||)||$||(17.2||)|
|Adjustment for Fair Value of Derivative Contract||$||13.7||$||(9.7||)||$||27.2||$||(74.1||)|
|Adjusted Net Income1||$||126.7||$||99.5||$||227.7||$||208.8|
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|
|June 30, 2015||December 31, 2014|
|Property, Plant and Equipment, Net||5,247.0||5,406.8|
|Liabilities and Equity|