Sales Down, Profit Up At Dow Corning
MIDLAND (WWJ) – Dow Corning Corp. Friday announced sales of $1.43 billion and net income of $117.4 million for the third quarter of 2013. A year ago, the company posted sales of $1.55 billion and net income of $96.6 million.
Through the nine months, sales were $4.12 billion and net income was $267 million. A year ago, nine month sales were $4.64 billion and net income was $288 million.
The company also posted an adjusted net income figure that was $28 million for the quarter, down from $77 million a year earlier. For the nine months, adjusted net income was $201 million, down from $269 million a year earlier.
Adjusted net income for both 2013 and 2012 excluded gains from long term sales agreements. Additionally, adjusted net income for 2013 excluded restructuring expenses, charges for impaired assets and a gain from a favorable derivative contract.
Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:
“Despite the significant pricing challenges we’ve faced in the past 18 months, Dow Corning maintains its industry leading financial foundation,” said Dow Corning executive vice president and CFO J. Donald Sheets. “In the past year we’ve paid down debt and maintained stable cash levels, carrying a strong balance sheet which will enable us to adapt and invest in the growth of our business. Our silicones segment continues to sell high volumes while pricing pressure continues to challenge our margins. We are confident that our product portfolio and talented team are well positioned to help our silicones business return to the trajectory of growth we expect. Hemlock Semiconductor’s polysilicon performance continued to track positively despite pricing and volume pressure as the solar industry deals with excess capacity and awaits resolution of the global trade disputes.”
Dow Corning provides more than 7,000 products and services to more than 25,000 customers worldwide in silicones and silicon-based technology. Dow Corning is equally owned by Midland’s Dow Chemical Co. (NYSE:DOW) and New York’s Corning Inc. (NYSE:GLW).