MIDLAND — Dow Corning Corp. last week reported net income of $121 million in the second quarter, down 36 percent from $191 million a year earlier
Revenue was $1.57 billion, down 6 percent from $1.67 billion a year earlier.
The company said high raw material costs and oversupply continue to challenge the company. Polysilicon prices remain depressed through Hemlock Semiconductor Group joint ventures, and sales in Europe are significantly lower due to economic volatility in the region.
For the year to date, net income was $192 million, down 48 percent from $370 million a year earlier. Revenue was $3.09 billion, down 5 percent from $3.25 billion a year earlier.
“The first half of 2012 presented significant challenges as oversupply in both the silicone and polycrystalline silicon industries combined with high raw material costs continued to impact our performance,” said Dow Corning executive vice president and CFO J. Donald Sheets. “Our Hemlock Semiconductor Group joint ventures continue to be challenged by oversupply in the polycrystalline silicon markets and the economic and political uncertainty surrounding the solar industry. Protecting our competitive cost position at both Dow Corning and Hemlock Semiconductor remains essential to our long-term success, and we continue to aggressively pursue opportunities to increase efficiency and reduce costs in our operations.”
Dow Corning offers more than 7,000 products and services to more than 25,000 customers worldwide. Dow Corning is equally owned by Midland-based Dow Chemical Co. and New York-based Corning, Inc.