Dow Corning Reports Sales and Profits Through Third Quarter of 2013
MIDLAND, Mich. -- October 25, 2013
DowCorning Corp. today announced sales of $4.12 billion and net income of
$267 million through the first three quarters of 2013. Dow Corning’s
year-to-date sales and adjusted net income were down 11 percent and 25
percent, respectively, compared to 2012. Adjusted net income for both 2013 and
2012 excluded gains from long term sales agreements. Additionally, adjusted
net income for 2013 excluded restructuring expenses, charges for impaired
assets and a gain from a favorable derivative contract.
Additional information about Dow Corning’s financial results:
Third Quarter Results
*Sales were $1.43billion, 8 percent lower than last year’s third quarter.
*Pricing pressure continued to limit margins in Dow Corning’s Silicones
*Polysilicon segment performance tracked positively despite continued
pricing and volume pressure.
*Adjusted net income was $28 million, 64 percent lower than last year’s
*Sales were $4.12billion, 11 percent lower than last year.
*Adjusted net income was $201 million, 25 percent lower than last year.
Q3 2013 Q3 2012 % Change 2013 2012 %
Sales (in $ 1.43 $ 1.55 -8 % $ 4.12 $ 4.64 -11 %
(in $ 117 $ 97 22 % $ 267 $ 288 -8 %
income* $ 28 $ 77 -64 % $ 201 $ 269 -25 %
*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
*“Despite the significant pricing challenges we’ve faced in the past 18
months, Dow Corning maintains its industry leading financial foundation.
In the past year we’ve paid down debt and maintained stable cash levels,
carrying a strong balance sheet which will enable us to adapt and invest
in the growth of our business.”
*“Our Silicones segment continues to sell high volumes while pricing
pressure continues to challenge our margins. We are confident that our
product portfolio and talented team are well positioned to help our
silicones business return to the trajectory of growth we expect.”
*“Hemlock Semiconductor’s polysilicon performance continued to track
positively despite pricing and volume pressure as the solar industry deals
with excess capacity and awaits resolution of the global trade disputes.”
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 (NYSE:DOW) and Corning, Incorporated (NYSE:GLW). 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)
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
Net Sales $ 1,426.6 $ 1,545.2 $ 4,120.9 $ 4,638.3
Attributable to $ 117.4 $ 96.6 $ 266.7 $ 288.4
Restructuring^1, $ 2.6 $ - $ 27.1 $ -
Long Term Sales $ (134.1 ) $ (19.7 ) $ (134.1 ) $ (19.7 )
Asset $ 74.0 $ - $ 74.0 $ -
Adjustment for $ (32.3 ) $ - $ (32.3 ) $ -
Adjusted Net $ 27.6 $ 76.9 $ 201.4 $ 268.7
^1 The three and nine month periods ended September 30, 2013 included
adjustments for restructuring charges.
^2 The three and nine month periods ended September 30, 2013 and September 30,
2012 included adjustments for gains on long term sales agreements.
^3 The three and nine month periods ended September 30, 2013 included an
adjustment for asset impairment.
^4 The three and nine month periods ended September 30, 2013 included an
adjustment for recognition of a favorable derivative contract asset.
^5 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
September 30, 2013 December 31, 2012
Current Assets $ 4,021.2 $ 4,117.3
Property, Plant and Equipment, 7,261.7 7,553.1
Other Assets 1,728.9 1,630.5
$ 13,011.8 $ 13,300.9
Liabilities and Equity
Current Liabilities $ 1,354.2 $ 1,513.5
Other Liabilities 7,908.0 8,214.2
Equity 3,749.6 3,573.2
$ 13,011.8 $ 13,300.9
Dow Corning Corp.
Jarrod Erpelding, 989.496.1582
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