MIDLAND — Dow Corning Corp. reported a decline in sales and net income for the fourth quarter of 2011, but record numbers for the year as a whole.
For the quarter, the company reported net income of $806 million, down 7 percent from $866 million in the fourth quarter of 2010. Revenue was $1.52 billion, down 4 percent from $1.58 billion a year earlier.
For the year, net income was $806 million, down 7 percent from $866 million in 2010. Revenue was $6.43 billion, up 7 percent from $6 billion a year earlier.
Adjusted net income, which excludes a gain on long-term sales agreements, was $76.8 million for the quarter, down 53 percent from $165 million a year earlier. For the year, adjusted net income was $613 million, down 15 percent from $724 million in 2010.
“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,” said Dow Corning executive vice president and CFO J. Donald Sheets. “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.”
Dow Corning provides 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 Inc.