By Tess Stynes
Corning Inc. (GLW) said its fourth-quarter earnings will include
about a net $100 million in charges stemming from its interest in
Dow Corning Corp.
In a regulatory filing, Corning said its quarterly results are
expected to include a $400 million gain, tied to a reduction in the
venture's estimates of remaining obligations under a settlement
program for breast implant product lawsuits that led Dow Corning to
file for bankruptcy in May 1995.
During the 1990s, litigation by thousands of women alleged that
systemic illnesses including lupus, rheumatoid arthritis and
scleroderma had been caused by silicone seeping through the body.
Such contentions led to multibillion-dollar settlements with Dow
Corning and other manufacturers.
The fourth-quarter items also include charges of about $500
million related to Dow Corning's recent decision to permanently
abandon its Hemlock Semiconductor facility in Clarksville, Tenn.
Dow Corning determined the Clarkville site, which produced
polycrystalline silicon used in solar products wouldn't be
economically viable amid a glut of supply in the sector and the
continuing impact of tariffs on polycrystalline silicon imported
into China.
Hemlock Semiconductor is comprised of several joint venture
companies majority owned by Dow Corning Corp.
Write to Tess Stynes at tess.stynes@wsj.com
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