Dow Corning Quarterly Net Falls, But Annual Profit A Record

Midland-based Dow Corning Corp. Friday reported record sales and profits for the full year 2010.

Fourth quarter sales were also a record, at $1.58 billion, up 7 percent $1.47 billion a year earlier. The company reported significant growth in Asia and Latin America sales in the quarter. Net income was $251 million, down 13 percent from $289 million a year earlier.

For the year, sales were a record $6 billion, up 18 percent from $5.09 billion a year earlier. Net income was a record $866 million, up 45 percent $598 million in 2009.

"2010 was an excellent year for Dow Corning, especially given the economic volatility which continues to impact some industries and regions," said Dow Corning executive vice president and CFO J. Donald Sheets. "Our ability to achieve record sales in this economic environment is indicative of Dow Corning's innovative product portfolio, expanded geographic footprint and effective business model."

Sheets said that the company's silicones business grew, "especially in electronics, life sciences, solar and industrial applications ... Our polycrystalline silicon business through Hemlock Semiconductor Group had another solid year as new capacity came online in 2010. The expansion activities at Hemlock Semiconductor's Michigan and Tennessee facilities continue and are expected to be completed as scheduled."

A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services to more than 25,000 customers worldwide. The company is a joint venture of Midland-based Dow Chemical Co.  (NYSE: DOW) and New York's Corning Inc. (NYSE: GLW). More than half of Dow Corning's annual sales are outside the United States.

The Hemlock Semiconductor Group is comprised of two joint ventures:  Hemlock Semiconductor Corp. and Hemlock Semiconductor, L.L.C. The companies are joint ventures among Dow Corning Corp., Shin-Etsu Handotai, and Mitsubishi Materials Corp. Hemlock Semiconductor provides polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices and solar photovoltaic generating systems. Hemlock Semiconductor began its Michigan operations in 1961.