Midland-based Dow Corning Corp. repored higher sales but lower profits in the first quarter ended March 31. Sales at the silicon product 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. the company said 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, to $175 million, frmo $173 million a year earlier.
Fow Corning’s first quarter sales performance reflects strong demand its 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. The company says it continues to seek opportunities to enhance the efficiency of our operations and to mitigate the impact of price volatility on our business. And, it said its silicones segment continues to see significant growth in emerging economies throughout Asia, Latin America and Eastern Europe.”
Dow Corning’s polycrystalline silicon segment, through its Hemlock Semiconductor Group joint ventures, continues to sell all of its production. Construction at Hemlock Semiconductor’s new manufacturing facility in Clarksville, Tenn., continues to progress and the site is expected to begin manufacturing polycrystalline silicon late in 2012.
Dow Corning provides more than 7,000 products and services to more than 25,000 customers worldwide. More at www.dowcorning.com.