Dow Corning Reports Sales and Profits for First Half of 2013

  Dow Corning Reports Sales and Profits for First Half of 2013

Business Wire

MIDLAND, Mich. -- July 31, 2013

DowCorning 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 $1.43billion, 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
  *Adjusted net income was $107 million, 11 percent lower than last year’s
    second quarter.

                             Year-to-Date Results

  *Sales were $2.69billion, 13 percent lower than last year.
  *Adjusted net income was $174 million, 9 percent lower than last year.

            Q2 2013    Q2 2012    %         2013       2012      %
                                      Change                            Change
Sales (in    $  1.43    $  1.57    -9 %      $  2.69    $  3.09   -13 %
Net income
(in          $  87      $  121     -28 %     $  149     $  192    -22 %
income*      $  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.DonaldSheets:

  *“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 ( 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 June 30,     Six Months Ended June
                        2013            2012            2013         2012
Net Sales               $  1,429.9      $  1,570.7      $  2,694.3   $ 3,093.1
Net Income
      Attributable      $  87.2         $  121.3        $  149.3     $ 191.8
      to Dow Corning
Adjustment for          $  20.2         $  -            $  24.5      $ -
Restructuring^1, net
Adjusted Net            $  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,        December 31,
                        2013            2012
Current Assets          $  3,967.1      $  4,117.3
Property, Plant and        7,417.5         7,553.1
Equipment, Net
Other Assets              1,721.2        1,630.5
                        $  13,105.8     $  13,300.9
Liabilities and
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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DowCorning Corp.
Jarrod Erpelding, 989.496.1582
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