Dow Corning Profits Plunge On Sales Decline
MIDLAND — Dow Corning Corp. Friday announced net income of $97 million for the third quarter ended Sept. 30, down 45 percent from $177 million in the same quarter a year earlier. Revenue for the quarter was $1.55 billion, down 7 percent from $1.66 billion a year earlier.
For the first nine months of the year, net income was $288 million, down 47 percent from $547 million a year earlier. Revenue was $4.64 billion, down 5 percent from $4.91 billion a year earlier.
The company said oversupply, economic volatility and high raw material costs continue to challenge the company’s profits. Specifically, polysilicon prices remain depressed due to industry oversupply, impacting the company’s Hemlock Semiconductor Group joint ventures, and sales in Europe were significantly lower due to continuing economic volatility.
“Oversupply in both the silicone and polycrystalline silicon industries, as well as high raw material costs have impacted our financial performance throughout 2012, and these conditions are likely to last well into 2013,” said executive vice president and CFO J. Donald Sheets. “Our Hemlock Semiconductor joint ventures continue to be challenged by global oversupply in the polycrystalline silicon markets. Additionally, the economic and political uncertainty surrounding the solar industry is also impacting Hemlock Semiconductor’s performance.”
Sheets said the company will “continue to pursue opportunities to increase efficiency and reduce costs in our operations, ultimately protecting the competitive cost position Dow Corning has earned through its nearly 70 years of experience.”
Dow Corning provides more than 7,000 products and services to more than 25,000 customers worldwide through its 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 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.
More at www.dowcorning.com.