Dow Corning Reports Sales and Profits for First Quarter of 2013
MIDLAND, Mich. -- May 1, 2013
DowCorning Corp. today reported its financial performance for the first
quarter of 2013. Dow Corning recorded sales of $1.26 billion and net income of
$62.1 million for the first quarter of 2013. Dow Corning’s sales and adjusted
net income were down 17 percent and 6 percent, respectively, compared to 2012.
Adjusted net income for 2013 excluded restructuring expenses.
Additional information about Dow Corning’s financial results:
First Quarter Results
*Sales were $1.26 billion, 17 percent lower than last year’s first quarter.
*Adjusted net income was $66.4 million, 6 percent lower than last year’s
*Sales were down in both the silicones and polysilicon segments, with the
polysilicon segment realizing the largest reduction.
*Dow Corning’s Hemlock Semiconductor Group joint ventures continue to be
challenged as the threat of potential duties on its products sold into
China remains unresolved.
Q1 2013 Q1 2012 % Change
Sales (in $ 1.26 $ 1.52 -17 %
Net income (in $ 62 $ 71 -12 %
income* (in $ 66 $ 71 -6 %
*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
*“Significant oversupply and high raw materials costs continued to
challenge the performance of our silicones segment in the first quarter.
Consistent with our strategy, we are beginning to see opportunities with a
number of the high-value, differentiated products we’ve developed
alongside our customers, however those opportunities are not sufficient to
make up for the broader pricing pressure in the silicones segment.”
*“Hemlock Semiconductor’s performance continued to worsen as the solar
polysilicon industry deals with excess inventories and awaits resolution
of the global trade disputes.”
*“In the first quarter, 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 expect the difficulties we’re facing to continue through
the year, Dow Corning’s strategy for long-term success is clear, and our
foundation is financially strong.”
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 March 31,
Net Sales $ 1,264.4 $ 1,522.4
Attributable to Dow Corning $ 62.1 $ 70.5
Adjustment for $ 4.3 $ -
Adjusted Net Income^2 $ 66.4 $ 70.5
^1The three month period ending March 31, 2013 included an adjustment for
^2Adjusted 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
March 31, 2013 December 31, 2012
Current Assets $ 3,901.7 $ 4,117.3
Property, Plant and 7,486.4 7,553.1
Other Assets 1,693.8 1,630.5
$ 13,081.9 $ 13,300.9
Liabilities and Equity
Current Liabilities $ 1,349.5 $ 1,513.5
Other Liabilities 8,212.9 8,214.2
Equity 3,519.5 3,573.2
$ 13,081.9 $ 13,300.9
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