Dow Corning Revenue, Net Income Fall
MIDLAND (WWJ) — Dow Corning Corp. Wednesday announced revenue of $2.69 billion and net income of $149 million for the first half of 2013. Dow Corning’s year-to-date sales and adjusted net income were down 13 percent and 9 percent, respectively, compared to 2012. Adjusted net income for 2013 excluded restructuring expenses and was $174 million.
For the second quarter, sales were $1.43 billion, 9 percent lower than last year’s second quarter. Second quarter silicones segment sales were up nearly 6 percent compared to the first quarter, while polysilicon sales volume and prices remained challenged by industry oversupply. Net income was $87 million, down 28 percent from $121 million a year earlier. Adjusted net income was $107 million, 11 percent lower than last year’s $121 million.
“Significant oversupply and high raw materials costs continued to challenge the performance of our silicones segment in the first half of the year,” said J. Donald Sheets, Dow Corning executive vice president and CFO. “We did see a quarter over quarter increase in the second quarter for a number of our high-value, differentiated silicone-based products. We are confident that our product portfolio, two-brand strategy, and talented team are well positioned to help our silicones business return to the trajectory of growth we expect.”
Sheets said the performance of Dow Corning’s Hemlock Semiconductor “began to stabilize in the second quarter as a result of the actions the company has taken in recent months. Polysilicon prices and volumes remain significantly down as the solar industry deals with excess capacity and awaits resolution of the global trade disputes.”
And, Sheets said, “in the first half of the year, we made some tough decisions to reduce Dow Corning’s cost structure to enable us to continue to invest in developing innovative products that bring value to both our customers and to Dow Corning. While we have a tough road in front of us, we’re confident that our strategy – backed by our strong financial position – will enable us to return to a path of growth.”
Dow Corning is a global leader in silicones and silicon-based technologies with more than 7,000 products and 25,000 customers. It is equally owned by Midland’s Dow Chemical Co. and New York’s Corning Inc.
More at http://www.dowcorning.com.