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J. Donald Sheets, Dow Corning's Executive Vice President And Chief Financial Officer (Photo: Business Wire)

Dow Corning Corp. today announced sales of $2.69 billion and net income of $149 million for the first half of 2013. Dow Corning’s year-to-date sales and adjusted net income were down 13 percent and 9 percent, respectively, compared to 2012. Adjusted net income for 2013 excluded restructuring expenses.

J. Donald Sheets, Dow Corning's executive vice president and chief financial officer (Photo: Busines ...

J. Donald Sheets, Dow Corning's executive vice president and chief financial officer (Photo: Business Wire)

Additional information about Dow Corning’s financial results:

Second Quarter Results

  • Sales were $1.43 billion, 9 percent lower than last year’s second quarter.
  • Q2 silicones segment sales were up nearly 6 percent compared to Q1.
  • Polysilicon sales volume and prices remained challenged by industry oversupply.
  • Adjusted net income was $107 million, 11 percent lower than last year’s second quarter.

Year-to-Date Results

  • Sales were $2.69 billion, 13 percent lower than last year.
  • Adjusted net income was $174 million, 9 percent lower than last year.
                         
    Q2 2013   Q2 2012   % Change   2013   2012   % Change
Sales (in billions)   $ 1.43   $ 1.57   -9 %   $ 2.69   $ 3.09   -13 %
Net income (in millions)   $ 87   $ 121   -28 %   $ 149   $ 192   -22 %
Adjusted net income* (in millions)   $ 107   $ 121   -11 %   $ 174   $ 192   -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:

  • “Significant oversupply and high raw materials costs continued to challenge the performance of our silicones segment in the first half of the year. We did see a quarter over quarter increase in the second quarter for a number of our high-value, differentiated silicone-based products. We are confident that our product portfolio, two-brand strategy, and talented team are well positioned to help our silicones business return to the trajectory of growth we expect.”
  • “Hemlock Semiconductor’s performance began to stabilize in the second quarter as a result of the actions the company has taken in recent months. Polysilicon prices and volumes remain significantly down as the solar industry deals with excess capacity and awaits resolution of the global trade disputes.”
  • “In the first half of the year, we made some tough decisions to reduce Dow Corning’s cost structure to enable us to continue to invest in developing innovative products that bring value to both our customers and to Dow Corning. While we have a tough road in front of us, we’re confident that our strategy – backed by our strong financial position – will enable us to return to a path of growth.”

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)
(Unaudited)
 
 
Consolidated Income Statement Data
 
Three Months Ended June 30, Six Months Ended June 30,
2013 2012 2013 2012
 
 
Net Sales $ 1,429.9 $ 1,570.7 $ 2,694.3 $ 3,093.1
 
Net Income
Attributable to Dow Corning $ 87.2 $ 121.3 $ 149.3 $ 191.8
 
Adjustment for Restructuring 1 , net $ 20.2 $ - $ 24.5 $ -
 
Adjusted Net Income 2 $ 107.4 $ 121.3 $ 173.8 $ 191.8
 
 
1 The three and six month periods ended June 30, 2013 included adjustments for restructuring charges
2 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, 2013 December 31, 2012
Assets
 
Current Assets $ 3,967.1 $ 4,117.3
Property, Plant and Equipment, Net 7,417.5 7,553.1
Other Assets   1,721.2   1,630.5
$ 13,105.8 $ 13,300.9
 
Liabilities and Equity
 
Current Liabilities $ 1,414.0 $ 1,513.5
Other Liabilities 8,078.4 8,214.2
Equity   3,613.4   3,573.2
$ 13,105.8 $ 13,300.9
 




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