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2011.05.06
Dow Corning Reports Increased Sales, Solid Income in First Quarter 2011
Dow Corning Corp. today announced financial performance for the first
quarter of 2011. Sales at the silicon-based innovator and manufacturer grew 17
percent, to $1.58 billion in the first quarter. Net income was $179 million, a
decrease when compared with the first quarter of 2010; however the 2010 net
income number included U.S.
Advanced Energy Manufacturing Tax Credits received by Dow Corning and its
joint ventures. Dow Corning’s adjusted net income, which excludes these tax
benefits, rose 2 percent in the quarter. Additional information about Dow
Corning’s financial results:
First Quarter Results
-
Sales were $1.58 billion, 17 percent higher than last year.
-
Adjusted net income was $175 million, 2 percent higher than last year.
-
Growth continues in Asia and Europe, particularly in developing geographic
regions.
-
Significant rise in materials and energy prices in first quarter are
challenging income results.
 | | | | | | | | |
| | | Q1 2011 | | Q1 2010 | | % Change | |
| | | | | | | | |
| Sales (in billions) | | $ 1.58 | | $ 1.35 | | 17 % | |
| | | | | | | | |
| Net income (in millions) | | $ 179 | | $ 218 | | -18 % | |
| | | | | | | | |
| Adjusted net income* (in millions) | | $ 175 | | $ 173 | | 2 % | |
| | | | | | | | |
| | |
| *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 (PDF):
-
"Dow Corning’s first quarter sales performance reflects strong demand
for our silicon-based
materials, especially in electronics, solar, life sciences and industrial
applications.”
-
“First quarter profits were softened by sharply rising materials and energy
costs, as well as
expenses related to the successful startup of new production capacity in the
U.S. and China.
We continue to seek opportunities to enhance the efficiency of our operations
and to mitigate
the impact of price volatility on our business.”
-
“Dow Corning’s silicones segment continues to see significant growth in
emerging economies
throughout Asia, Latin America and Eastern Europe.”
-
“Dow Corning’s polycrystalline silicon segment through our Hemlock
Semiconductor Group
joint ventures continues to sell all of its production. Construction at Hemlock
Semiconductor’s
new manufacturing facility in Clarksville, TN, continues to progress and the
site is expected
to begin manufacturing polycrystalline silicon late in 2012.”
View Q1 2011 Condensed Consolidated Statements of Operations (PDF size
= 12.1 KB)
About Dow Corning
Dow Corning (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. Dow Corning’s global
operations adhere to the American Chemistry Council’s Responsible Care®
initiative, a stringent set of standards designed to advance the safe and
secure management of chemical products and processes.
About Hemlock Semiconductor Group
The Hemlock Semiconductor
Group (Hemlock Semiconductor) is comprised of two joint ventures:Hemlock
Semiconductor Corporation and Hemlock Semiconductor, L.L.C. The companies are
joint ventures 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 Michigan operations in
1961 and broke ground at its
Tennessee location in 2009.