MIDLAND, Mich., July 31 — PRNewswire-FirstCall — Dow Corning Corp. today reported consolidated adjusted net income of $115.5 million for the second quarter of 2009, a decrease of 38 percent from net income of $187.7 million reported in the second quarter of 2008. For the first half of 2009, adjusted net income was $182.2 million, a decline of 48 percent from net income of $348.1 million reported in the first half of last year. The 2009 adjusted net income excluded restructuring charges. The 2008 results were not adjusted for any unusual items. Including all items, Dow Corning reported consolidated net income of $115.4 million for the second quarter and $124.8 million for the first half of 2009.
Sales were $1.19 billion in the second quarter of 2009, 14 percent lower than sales of $1.38 billion in the same quarter of 2008. Sales in the first half of 2009 were $2.22 billion, 17 percent lower than sales of $2.66 billion reported in the first half of 2008.
“While the global economic recession continues to dampen demand for Dow Corning silicone-based products, we did see some improvement in the second quarter,” said Dow Corning’s Vice President and Chief Financial Officer J. Donald Sheets. “Hemlock Semiconductor Group, which manufactures polysilicon for the solar and semiconductor industries, continues to run at full capacity and sell all of its output.”
“In the second quarter, we announced a transformation of our business strategy to help customers to be more efficient, innovative and sustainable,” said Sheets. “This includes a significant expansion in Dow Corning’s XIAMETER brand – a Web-enabled business for selling standard silicone products at market-driven prices.”
About Dow Corning
Dow Corning (NYSE:GLW) (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 a joint venture equally owned by The Dow Chemical Company (NYSE:DOW) and Corning, Incorporated. 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)
Consolidated Income Statement Data
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
—- —- —- —-
Net Sales $1,191.3 $1,384.1 $2,215.9 $2,659.1
Dow Corning $115.4 $187.7 $124.8 $348.1
Restructuring (1), net $0.1 $- $57.4 $-
—- — —– —
Adjusted Net Income (2) $115.5 $187.7 $182.2 $348.1
(1) The six months ended June 30, 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
June 30, 2009 December 31, 2008
Current Assets $2,584.4 $3,212.6
Property, Plant and
Equipment, Net 4,342.0 3,755.9
Other Assets 2,204.1 2,253.7
Liabilities and Stockholders’ Equity
Current Liabilities $1,786.0 $2,007.8
Other Liabilities 4,948.5 4,475.0
Equity 2,396.0 2,739.4
Source: Dow Corning Corp.
CONTACT: Jarrod Erpelding, Dow Corning, +1-989-496-1582,
Web Site: http://www.dowcorning.com/