MIDLAND, Mich., May 1, 2009 /PRNewswire-FirstCall/ – Dow Corning Corp. today reported consolidated adjusted net income of $66.7 million for the first quarter of 2009, a decrease of 58 percent from adjusted net income of $160.4 million reported in the first quarter of 2008. Adjusted net income excludes a charge for restructuring in the first quarter of 2009. The 2008 results were not adjusted for any unusual items. Including all items, Dow Corning reported consolidated net income of $9.4 million for the first quarter of 2009.
Sales were $1.03 billion in the first quarter of 2009, 20 percent lower than sales of $1.28 billion in the same quarter of 2008.
“As expected, the global economic recession has led to a significant decrease in demand for silicone-based products,” said Dow Corning’s Vice President and Chief Financial Officer J. Donald Sheets. “Polysilicon sales through our Hemlock Semiconductor Group joint ventures continue to grow with the addition of capacity that came online in 2008.”
“Dow Corning is taking decisive actions to conserve cash during this economic downturn to ensure we have the necessary resources to implement our strategy and focus on our key initiatives. While we need to meet the challenges of today, we are firmly focused on positioning ourselves for the future and the economic recovery to come,” said Sheets.
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(R) and Xiameter(R) brands. Dow Corning is a joint venture 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. The Hemlock Semiconductor Group is comprised of two Dow Corning joint ventures: Hemlock Semiconductor Corporation and Hemlock Semiconductor, L.L.C.
Dow Corning Corporation Selected Financial Information
(in millions of U. S. dollars)
(Unaudited)
Consolidated Income Statement Data
Three Months Ended March 31,
Net Sales
2009
—–
$1,024.6
2008
—–
$1,275.0
Net Income Attributable to Dow Corning
2009
—–
$9.4
2008
—–
$160.4
Adjustment for Restructuring (1)
2009
—–
$57.3
2008
—–
$-
Adjusted Net Income (2)
2009
—–
$66.7
2008
—–
$160.4
(1) The period ending March 31, 2009 included charges related to the Company’s restructuring program.
(2) 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
Assets
March 31, 2009
—–
$2,463.9
December 31, 2008
—–
$3,212.6
Current Assets Property, Plant and Equipment, Net Other Assets
March 31, 2009
—–
4,056.4
2,154.6
========
$8,674.9
December 31, 2008
—–
3,755.9
2,253.7
========
$9,222.2
Liabilities and Equity
Current Liabilities
March 31, 2009
—–
$1,881.0
December 31, 2008
—–
$2,007.8
Other Liabilities
March 31, 2009
—–
4,655.5
December 31, 2008
—–
4,475.0
Equity
March 31, 2009
—–
2,138.4
========
$8,674.9
December 31, 2008
—–
2,739.4
========
$9,222.2
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Source: Dow Corning Corporation
CONTACT: Jarrod Erpelding of Dow Corning Corp., +1-989-496-1582,
Jarrod.Erpelding@dowcorning.com
