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Press release from Business Wire

Dow Corning Reports Sales and Profits for First Quarter of 2013

Wednesday, May 01, 2013

Dow Corning Reports Sales and Profits for First Quarter of 2013

11:05 EDT Wednesday, May 01, 2013

MIDLAND, Mich. (Business Wire) -- Dow Corning 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 first quarter.
  • 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 billions)   $ 1.26   $ 1.52   -17 %
Net income (in millions)   $ 62   $ 71   -12 %
Adjusted net income* (in millions)   $ 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 Officer J. Donald Sheets:

  • “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)
(Unaudited)
 
 
Consolidated Income Statement Data
 
Three Months Ended March 31,
2013 2012
 
 
Net Sales $ 1,264.4 $ 1,522.4
 
Net Income
Attributable to Dow Corning $ 62.1 $ 70.5
 
Adjustment for Restructuring 1 , net $ 4.3 $ -
 
Adjusted Net Income 2 $ 66.4 $ 70.5
 
 
1 The three month period ending March 31, 2013 included an adjustment 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
 
March 31, 2013 December 31, 2012
Assets
 
Current Assets $ 3,901.7 $ 4,117.3
Property, Plant and Equipment, Net 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

Dow Corning Corp.
Jarrod Erpelding
Jarrod.Erpelding@dowcorning.com
989.496.1582

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