Dow Corning Reports Increased Sales, Flat Net Income
MIDLAND -- Dow Corning Corp. today announced sales of $4.91 billion and net income of $547 million through the first three quarters of 2011.
Sales in the third quarter increased 10 percent compared to last year's third quarter as demand continued to grow despite global economic volatility.
Third quarter results included sales of $1.66 billion, 10 percent higher than last year's third quarter. Growth continued in Asia, Eastern Europe and in developing geographic regions.
Third quarter net income was $177 million, 1 percent higher than last year's third quarter. The company said higher prices for materials and energy exerted downward pressure on product margins.
For the nine months, sales were $4.91 billion, 11 percent higher than last year. Net income was $547 million, 11 percent lower than last year.
"While demand for Dow Corning's silicone-based products continued to grow in the third quarter, the pace of growth slowed in many regions – notably in North America and Europe," said Dow Corning executive vice president and CFO J. Donald Sheets. "Significant increases in raw materials and energy prices continue to challenge profit levels. Dow Corning's polycrystalline silicon segment through its Hemlock Semiconductor Group joint ventures is beginning to feel the impact of softening demand and lower prices in the solar industry. The global economic environment is uncertain, volatile and unpredictable, with no clear relief in sight. We're responding to this uncertainty with a sharp focus on enhancing the efficiency and productivity of our operations while keeping our customers directly in focus."
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 Midland-based Dow Chemical Co. and New York-based Corning, Inc.
Hemlock Semiconductor Group is comprised of several joint venture companies 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 cells and modules. Hemlock Semiconductor began its operations in 1961.
