Dow Corning Corp. today reported its financial performance for the fourth quarter and full year of 2012. Dow Corning recorded sales of $6.12 billion and net income of $188 million for 2012. Dow Corning’s year-to-date sales and adjusted net income were down 5 percent and 45 percent, respectively, compared to 2011 as oversupply, economic volatility and high raw material costs significantly reduced the company’s profits. Adjusted net income for 2012 excluded charges for asset abandonments and restructuring expenses. Adjusted net income for 2011 excluded a gain on long-term sales agreements. Additional information about Dow Corning’s financial results:
Fourth Quarter Results
- Sales were $1.48 billion, 3 percent lower than last year’s fourth quarter.
- Adjusted net income was $69 million, 10 percent lower than last year’s fourth quarter.
- Dow Corning’s Hemlock Semiconductor Group joint ventures continued to be challenged by significant oversupply in the polysilicon industry and the threat of potential duties on its products sold into China.
- Sales in Europe continued to be significantly lower due to continuing economic volatility.
- Sales were $6.12 billion, 5 percent lower than 2011.
- Adjusted net income was $338 million, 45 percent lower than 2011.
|Q4 2012||Q4 2011||% Change||2012||2011||% Change|
|Sales (in billions)||$||1.48||$||1.52||-3%||$||6.12||$||6.43||-5%|
|Net income (Loss) (in millions)||$||(101||)||$||260||-139%||$||188||$||806||-77%|
|Adjusted net income* (in millions)||$||69||$||77||-10%||$||338||$||613||-45%|
|*Adjusted net income is a non-GAAP financial measure which excludes certain unusual items. The reconciliation between GAAP and non-GAAP measures is shown in the table following the news release.|
Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:
- “Oversupply in the silicone and polycrystalline silicon industries, as well as persistently high raw material costs and global trade policy instability impacted our financial performance significantly in 2012. While we expect these conditions to last well into 2013, Dow Corning’s strategy for long-term success is clear and robust, and our foundation is financially strong.”
- “We are taking actions to strengthen our ability to maintain our competitive position in the marketplace and enable us to continue to invest in developing innovative products for our customers.”
- “We have a strong product portfolio that includes a mix of world-class, highly differentiated products together with a balanced portfolio of highly innovative new materials to ensure our long-term success. We also continue to aggressively pursue opportunities to increase efficiency and reduce costs in our operations.”
- “The unresolved trade disputes among the U.S., China and Europe are a major factor in Hemlock Semiconductor’s business, as the threat of tariffs on U.S. polysilicon imported into China has significantly decreased orders from China, which is home to one of the largest markets for solar polysilicon.”
|Dow Corning Corporation|
|Selected Financial Information|
|(in millions of U. S. dollars)|
|Consolidated Income Statement Data|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Net Income (Loss)|
|Attributable to Dow Corning||$||(100.7||)||$||259.7||$||187.7||$||806.2|
|Adjustment for Asset Abandonments and Restructuring 1||$||169.5||$||-||$||169.5||$||-|
|Adjustment for Long-Term Sales Contracts 2||$||-||$||(177.6||)||$||(19.7||)||$||(177.6||)|
|Adjustment for AEMC 3 , net||$||-||$||(5.3||)||$||-||$||(15.8||)|
|Adjusted Net Income 4||$||68.8||$||76.8||$||337.5||$||612.8|
|Consolidated Balance Sheet Data|
|December 31, 2012||December 31, 2011|
|Property, Plant and Equipment, Net||7,553.1||7,380.3|
|Liabilities and Equity|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV