Dow Corning Reports Record Sales and Profits in 2010

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MIDLAND, Mich., Feb. 4, 2011 /PRNewswire-FirstCall/ — Dow Corning Corp. today announced its results for the fourth quarter and full year of 2010.  Dow Corning’s sales of $6.00 billion and net income of $866 million were both records for Dow Corning.  Additional information about the financial results:

Fourth Quarter Results

  • Sales were a record $1.58 billion, 7 percent higher than last year.
  • Significant growth in Asia and Latin America resulted in record sales for these geographic regions.

Annual Results

  • Sales were a record $6.00 billion, 18 percent higher than last year.
  • Record sales across all developing geographic regions contributed to the sales growth.
  • Net income was a record $866 million, an increase of 45 percent from last year.
  • Adjusted net income was $724 million, an increase of 29 percent from last year.

 

Q4 2010

Q4 2009

% Change

2010

2009

% Change

 

Sales (in billions)

$   1.58

$   1.47

7 %

$ 6.00

$ 5.09

18 %

 

Net Income (in millions)

$    251

$    289

-13 %

$  866

$  598

45 %

 

Adjusted Net Income* (in millions)

$    165

$    197

-16 %

$  724

$  563

29 %

 

*Adjusted Net Income is a non-GAAP financial measure which excludes certain unusual items.  The reconciliation between GAAP and non-GAAP measures is shown in the table following the news release.

 
             

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

  • “2010 was an excellent year for Dow Corning, especially given the economic volatility which continues to impact some industries and regions.  Our ability to achieve record sales in this economic environment is indicative of Dow Corning’s innovative product portfolio, expanded geographic footprint and effective business model.”
  • “Dow Corning’s silicones business continued to grow, especially in electronics, life sciences, solar and industrial applications.  Our strong performance in silicones is a direct result of Dow Corning’s ability to deliver innovative silicone-based solutions and reach new geographic markets through our two-brand strategy.”
  • “Our polycrystalline silicon business through Hemlock Semiconductor Group had another solid year as new capacity came online in 2010.  The expansion activities at Hemlock Semiconductor’s Michigan and Tennessee facilities continue and are expected to be completed as scheduled.”
  • “As the global economy continues to recover, rising raw material and energy prices will present us with some additional challenges in 2011.”
  • “Dow Corning and Hemlock Semiconductor are well positioned for continued growth with several capital projects complete or underway to boost our manufacturing capacity and research and development capabilities globally.”

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 (NYSE: DOW) and Corning, Incorporated (NYSE: GLW). More than half of Dow Corning’s annual sales are outside the United States.

About Hemlock Semiconductor Group

The Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of two joint ventures:  Hemlock Semiconductor Corporation and Hemlock Semiconductor, L.L.C.  The companies are joint ventures 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 Michigan operations in 1961 and broke ground at its Tennessee location in 2009.

Dow Corning Corporation

 

Selected Financial Information

 

(in millions of U. S. dollars)

 

(Unaudited)

 
   

Consolidated Income Statement Data

 
                 
     

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 
     

2010

 

2009

 

2010

 

2009

 
                     
                     

Net Sales

 

$ 1,584.3

 

$  1,468.1

 

$ 5,997.3

 

$ 5,092.5

 
                     

Net Income

                 
 

Attributable to Dow Corning

 

$    251.0

 

$    289.0

 

$   866.0

 

$    598.1

 
                     

Adjustment for AEMC(1), net

 

$      (2.4)

 

$            –

 

$    (58.3)

 

$           –

 
                     

Adjustment for Tax Benefit(2)

 

$    (84.1)

 

$     (63.0)

 

$    (84.1)

 

$    (63.0)

 
                     

Adjustment for Restructuring(3) , net

 

$           –

 

$         3.8

 

$           –

 

$      61.4

 
                     

Adjustment for Bargain Purchase(4)

 

$           –

 

$      (33.3)

 

$           –

 

$    (33.3)

 
                     

Adjusted Net Income(5)

 

$    164.5

 

$     196.5

 

$   723.6

 

$    563.2

 
                     
                     

( 1)

Fiscal year 2010 included a tax benefit related to Advanced Energy Manufacturing Credits, net of the noncontrolling interests’ share.

 

( 2)

Fiscal year 2010 included a tax benefit related to the 4th quarter start up of operations in China.

 
 

Fiscal years 2010 and 2009 also included a tax benefit associated with foreign dividends.

 

( 3)

Fiscal year 2009 included charges related to the Company’s restructuring program.

 

( 4)

Fiscal year 2009 included a bargain purchase gain related to an acquisition.

 

( 5)

Adjusted Net Income is a non-GAAP financial measure which excludes certain unusual items and which reconciles to Net Income as shown.

 
                   

Consolidated Balance Sheet Data

 
       
       

December 31, 2010

 

December 31, 2009

 

Assets

           
             

Current Assets

   

$                   4,624.6

 

$                   3,579.2

 

Property, Plant and Equipment, Net

   

6,120.7

 

5,049.8

 

Other Assets

   

1,903.1

 

2,194.3

 
     

$                 12,648.4

 

$                 10,823.3

 
             

Liabilities and Equity

           
             

Current Liabilities

   

$                   2,287.8

 

$                   1,926.0

 

Other Liabilities

   

6,862.8

 

5,850.8

 

Equity

   

3,497.8

 

3,046.5

 
     

$                 12,648.4

 

$                 10,823.3

 
               

SOURCE Dow Corning Corp.

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