About Dow Corning
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Dow Corning Reports Increased Sales For The First Half of 2011
Midland, Mich. - Dow Corning Corp. today announced sales of
$3.25 billion and net income of $370 million in the first half of 2011.
Sales increased 12 percent as global demand continued to grow for the
silicon-based innovator and manufacturer. Additional information about
Dow Corning’s financial results:
Second Quarter Results
Sales were $1.67 billion, 8 percent higher than last year.
Net income was $191 million, 14 percent lower than last year.
Significant demand growth continued in Asia, Latin America, Eastern Europe
and in developing geographic regions.
Sharp increases in prices for materials and energy, as well as higher
levels of operating expenses, negatively impacted net income growth.
External factors including slowing global economies, Japan’s tsunami and
earthquake, and unrest in the Middle East depressed net income results.
Sales were $3.25 billion, 12 percent higher than last year.
Net income was $370 million, 16 percent lower than last year.
Adjusted net income was $363 million, 6 percent lower than last year, which
excluded the U.S. Advanced Energy Manufacturing Tax Credits received by Dow
Corning and its joint ventures in 2010.
| ||Q2 2011||Q2 2010||% Change||2011||2010||% Change||
|Sales (in billions)||$ 1.67||$1.54||8%||$3.25||$2.90||12 %||
|Net Income (in millions)||$191||$221||-14%||$370||$439||-16%||
|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
President and Chief Financial Officer J. Donald Sheets:
“While demand remains solid for Dow Corning’s silicon-based materials,
we’ve seen pressure on our profits in the first half of 2011 from sharply
rising raw materials and energy prices. We’re countering these challenges
by focusing on the efficiency of our business and by continuing to invest in
innovation to serve high-value growth opportunities.”
“Dow Corning’s silicones segment continues to see significant growth in
emerging economies throughout Asia, Latin America and Eastern Europe, despite
the global economic volatility that has challenged all businesses in
“Dow Corning’s polycrystalline silicon segment through our Hemlock
Semiconductor Group joint ventures continues to sell all of its production, and
remains sold out for the foreseeable future. While there has been some
softening in the solar industry in 2011, we believe the solar industry will
continue to grow at a rapid pace over the long-term as regions seek clean,
renewable, domestically-generated sources of energy.”
“The pace of the global economic recovery remains slow due to uncertainty
in the current business environment. Political instability throughout the
globe, as well as the tragedy of the earthquake and tsunami in Japan earlier
this year, added to the challenges businesses like Dow Corning faced in the
first half of the year.”
View Q2 2011 Condensed
Consolidated Statements of Operations (PDF size = 12.2 KB)
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
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.