Dow Corning Reports Increased Sales and Profits for First Half of 2014
July 30 2014 - 8:15AM
Business Wire
Dow Corning Corp. today announced sales of $3.02 billion,
an increase of 12 percent over 2013, and net income of $300
million. Adjusted net income in the first half of 2014 was $209
million, an increase of 20 percent compared with the first half of
2013.
J. Donald Sheets, Dow Corning executive
vice president and chief financial officer
Adjusted net income for 2014 excluded gains from a derivative
contract and long term sales agreements. Adjusted net income for
2013 excluded restructuring expenses. Additional information about
Dow Corning’s financial results:
Second Quarter Results
- Sales were $1.50 billion, 5
percent higher than last year’s second quarter
- Adjusted net income was $100 million, 7
percent lower than last year’s second quarter
- Silicones segment sales grew in most
geographies; significant growth in transportation and electronics
applications
- Profits in both the Silicones and
Polysilicon segments were tempered by inflation from raw materials
costs
Year-to-Date Results
- Sales were $3.02 billion, 12
percent higher than the first half of last year
- Adjusted net income was $209 million,
20 percent higher than the first half of last year
Q2 2014 Q2 2013 %
Change 2014 2013 % Change
Sales (in billions) $ 1.50 $ 1.43
5 % $ 3.02 $ 2.69
12 % Net income (in millions) $ 109
$ 87 25 % $ 300 $
149 101 % Adjusted net income* (in millions)
$ 100 $ 107 -7 % $
209 $ 174 20 %
*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:
- “We had a strong first half of the
year, as our team committed to returning Dow Corning to a
trajectory of growth in 2014. Thus far in 2014, sales and profits
are growing, outpacing a sluggish global economy and amidst
industry oversupply and increased raw materials costs.”
- “Dow Corning’s Silicones segment
volumes increased throughout most of the globe, as customers look
to us for our high quality, reliable products and our expertise in
helping apply silicones in new and innovative applications.”
- “In our Polysilicon segment, Hemlock
Semiconductor Group’s performance was a result of long-term
contract customers continuing to take shipments of material for
both semiconductor and solar grade polysilicon.”
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.
About Hemlock Semiconductor Group
Hemlock Semiconductor Group (hscpoly.com) is comprised of several joint venture
companies owned in majority by Dow Corning 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.
Dow Corning Corporation
Selected Financial Information (in millions of U. S.
dollars) (Unaudited) Consolidated Income
Statement Data Three Months Ended June 30, Six
Months Ended June 30, 2014 2013 2014
2013 Net Sales $ 1,500.6
$ 1,429.9 $ 3,024.8 $
2,694.3 Net Income Attributable to Dow
Corning $ 109.2 $ 87.2 $
300.1 $ 149.3 Adjustment for
Long-Term Sales Agreement1 $ - $
- $ (17.2 ) $ -
Adjustment for Contract Asset2 $ (9.7
) $ - $ (74.1 ) $
- Adjustment for Restructuring3,
net $ - $ 20.2 $
- $ 24.5 Adjusted Net
Income4 $ 99.5 $
107.4 $ 208.8 $ 173.8
1 The six month period ended June 30, 2014 included an
adjustment for a gain on a long-term sales agreement.2
The three and six month periods ended June 30, 2014 included
adjustments for the changes in market value of a derivative
contract asset.3 The three and six month periods
ended June 30, 2013 included adjustments for restructuring
charges.4 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, 2014 December 31,
2013 Assets Current Assets $
4,243.6 $ 3,995.7 Property, Plant and
Equipment, Net 7,034.3 7,231.1 Other
Assets 1,245.5 1,075.3 $
12,523.4 $ 12,302.1 Liabilities and
Equity Current Liabilities $
1,381.3 $ 1,346.0 Other Liabilities
7,144.0 7,177.5 Equity 3,998.1
3,778.6 $ 12,523.4 $
12,302.1
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Dow Corning Corp.Jarrod Erpelding,
989.496.1582Jarrod.Erpelding@dowcorning.com
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