Net income crashes 47% at Dow Corning in Q3

Third Quarter Results

• Sales were $1.55 billion, 7 percent lower than last year’s third quarter.
• Polysilicon prices remain depressed due to industry oversupply, impacting the company’s Hemlock Semiconductor Group joint ventures.
• Sales in Europe were significantly lower due to continuing economic volatility.
• Net income was $97 million, 45 percent lower than last year’s third quarter.

Year-to-Date Results

• Sales were $4.64 billion, 5 percent lower than last year.
• Net income was $288 million, 47 percent lower than last year.

Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:

• “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.” 
• “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.” 
• “Dow Corning’s response to the volatile economy and oversupplied marketplace is to focus on delivering innovative silicon-based products and solutions to our customers that differentiate us from our competitors.”
• “We also 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 performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. 

Dow Corning Corp.