Dow Corning Corp. today announced its financial performance for the first quarter of 2012. Dow Corning recorded sales of $1.52 billion and net income $70.5 million. Both sales and net income were lower than the first quarter of 2011. Additional information about Dow Corning’s financial results:
First Quarter Results
- Sales were $1.52 billion, 4 percent lower than last year’s first quarter.
- While demand improved slightly over last year, prices were depressed globally.
- Price pressure coupled with high raw material costs resulted in a decline in product margins.
- Net income was $70.5 million, 61 percent lower than last year’s first quarter.
Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:
- “As expected, this was a difficult quarter due to oversupply in both the silicone and polycrystalline silicon industries combined with rising raw materials and energy costs.”
- “While global demand continues to grow for our silicone-based materials, significant pricing pressure is impacting our performance.”
- “Our Hemlock Semiconductor Group joint ventures will continue to be challenged by the oversupplied polycrystalline silicon industry throughout 2012.”
- “As a cost-competitive manufacturer in both the silicone and polycrystalline silicon segments, we are well positioned to compete during this period of oversupply.”
- “Protecting our competitive cost position at both Dow Corning and Hemlock Semiconductor remains essential to our long-term success, and we are aggressively pursuing opportunities to increase efficiency and reduce costs in our operations.”
- “Dow Corning continues to pioneer new technologies with a robust innovation portfolio that will drive margin growth in the future.”
About Dow Corning
Dow Corning (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company’s Dow Corning® and XIAMETER® brands. Dow Corning is equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning’s annual sales are outside the United States.
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About Hemlock Semiconductor Group
Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of several joint venture companies among Dow Corning Corporation, Shin-Etsu Handotai, and Mitsubishi Materials Corporation. Hemlock Semiconductor is a leading provider of 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.