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Dow Corning Corp. today announced its results for the fourth quarter and full year of 2011. Dow Corning recorded record sales of $6.43 billion in 2011 while adjusted net income decreased 15 percent compared to 2010. Adjusted net income excluded a gain on long-term sales agreements. Fourth quarter sales decreased 4 percent compared to fourth quarter 2010 as prices softened in the face of global economic volatility. Additional information about Dow Corning’s financial results:

Fourth Quarter Results

• Sales were $1.52 billion, 4 percent lower than last year’s fourth quarter.
• While demand was reasonably stable, prices softened across most geographic regions.
• Net income was $260 million, 3 percent higher than last year’s fourth quarter.
• Adjusted net income was $76.8 million, 53 percent lower than last year’s fourth quarter.

 Year-to-Date Results 

• Sales were $6.43 billion, 7 percent higher than last year.
• Significant areas of growth included Asia, Eastern Europe and developing geographic regions.
• Net income was $806 million, 7 percent lower than last year.
• Adjusted net income was $613 million, 15 percent lower than last year.

 

			Q4 2011		Q4 2010		% Change		2011		2010		% Change
	Sales (in billions)		$1.52		$1.58		-4%		$6.43		$6.00		7%
	Net income (in millions)		$260		$251		3%		$806		$866		-7%
	Adjusted net income* (in millions)		$76.8		$165		-53%		$613		$724		-15%
	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 = 13.6 KB)

 

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

• “We were unable to translate record 2011 sales into increased profits due to oversupply and softening demand in our industry combined with higher materials and energy costs.  This situation, as well as continued global economic volatility, impacted both our silicones and polycrystalline silicon-segments.”
• “In our silicones segment, demand continued to grow in the emerging economies throughout Asia and Latin America; however Europe and North America remained nearly flat.”
• “Our polycrystalline silicon business through Hemlock Semiconductor Group was impacted by significant oversupply in the solar industry, a condition we expect to continue in 2012.”
• “As a cost-competitive manufacturer in both the silicone and polycrystalline silicon segments, we are well positioned to compete.”
• “Protecting our competitive cost position at both Dow Corning and Hemlock Semiconductor is essential to our long-term success, and we are aggressively pursuing opportunities to increase efficiency and reduce costs in our operations.”   
• “Dow Corning continues to pioneer new technologies with a robust innovation portfolio that will drive our success in the future.”

 

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.

 

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.

For further information, please direct inquiries to one of our media representatives.

 

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