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Dow Corning Corp. today announced sales of $3.09 billion and net income $192 million for the first half of 2012. Dow Corning’s year-to-date sales and net income were down 5 percent and 48 percent, respectively, compared to 2011 as oversupply and high raw material costs continue to challenge the company’s profits. Additional information about Dow Corning’s financial results:

Second Quarter Results

• Sales were $1.57 billion, 6 percent lower than last year’s second quarter.
• Polysilicon prices remain depressed through Hemlock Semiconductor Group joint ventures.
• Sales in Europe are significantly lower due to economic volatility in the region.
• Net income was $121 million, 36 percent lower than last year’s second quarter.

 

Year-to-Date Results

• Sales were $3.09 billion, 5 percent lower than last year.
• Net income was $192 million, 48 percent lower than last year.

			Q2 2012		Q2 2011		% Change		2012		2011		% Change
	Sales (in billions)		$    1.57		$    1.67		-6%		$    3.09		$    3.25		-5%
	Net Income (in millions)		$     121		$     191		-36%		$     192		$     370		-48%
	Adjusted net income* (in millions)		$     121		$     188		-35%		$     192		$     363		-47%
	*Adjusted net income is a non-GAAP financial measure which excludes certain unusual items. The reconciliation between non-GAAP and GAAP measures is shown in the Consolidated Statement of Operations linked below.

View year-end Condensed Consolidated Statements of Operations (PDF size = 11.8 KB)

Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets (PDF):

• “The first half of 2012 presented significant challenges as oversupply in both the silicone and polycrystalline silicon industries combined with high raw material costs continued to impact our performance.” 
• “Our Hemlock Semiconductor Group joint ventures continue to be challenged by oversupply in the polycrystalline silicon markets and the economic and political uncertainty surrounding the solar industry.” 
• “Protecting our competitive cost position at both Dow Corning and Hemlock Semiconductor remains essential to our long-term success, and we continue to aggressively pursue opportunities to increase efficiency and reduce costs in our operations.”

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. 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

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.

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