Dow Corning Reports Increased Sales, Flat Net Income in Third Quarter of 2011
October 31 2011 - 11:00AM
Business Wire
Dow Corning Corp. today announced sales of $4.91 billion
and net income of $547 million through the first three quarters of
2011. Sales in the third quarter increased 10 percent compared to
last year’s third quarter as demand continued to grow despite
global economic volatility. Additional information about Dow
Corning’s financial results:
Third Quarter Results
- Sales were $1.66 billion, 10
percent higher than last year’s third quarter.
- Growth continued in Asia, Eastern
Europe and in developing geographic regions.
- Net income was $177 million, 1 percent
higher than last year’s third quarter.
- Higher prices for materials and energy
exerted downward pressure on product margins.
Year-to-Date Results
- Sales were $4.91 billion, 11
percent higher than last year.
- Net income was $547 million, 11 percent
lower than last year.
- Adjusted net income was $536 million, 4
percent lower than last year, which excluded the U.S. Advanced
Energy Manufacturing Tax Credits received by Dow Corning and its
joint ventures in 2010.
Q3 2011 Q3 2010 % Change
2011 2010 % Change Sales (in billions) $ 1.66
$ 1.51 10 % $ 4.91 $ 4.41 11 %
Net income (in millions) $ 177 $ 176 1 % $ 547
$ 615 -11 % Adjusted net income* (in millions) $ 173
$ 172 1 % $ 536 $ 559 -4 %
*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:
- “While demand for Dow Corning’s
silicone-based products continued to grow in the third quarter, the
pace of growth slowed in many regions – notably in North America
and Europe. Significant increases in raw materials and energy
prices continue to challenge profit levels.”
- “Dow Corning’s polycrystalline silicon
segment through its Hemlock Semiconductor Group joint ventures is
beginning to feel the impact of softening demand and lower prices
in the solar industry.”
- “The global economic environment is
uncertain, volatile and unpredictable, with no clear relief in
sight. We’re responding to this uncertainty with a sharp focus on
enhancing the efficiency and productivity of our operations while
keeping our customers directly in focus.”
- “Dow Corning’s two-brand business
model, robust innovation portfolio, and global reach have
positioned us well to weather this period of economic
uncertainty.”
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
(Hemlock Semiconductor) is comprised of several joint venture
companies 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 operations
in 1961.
Dow Corning Corporation Selected Financial
Information (in millions of U. S. dollars)
(Unaudited) Consolidated
Income Statement Data Three Months Ended September
30, Nine Months Ended September 30, 2011
2010 2011 2010 Net Sales
$ 1,660.4 $ 1,514.7 $
4,907.8 $ 4,413.0 Net Income
Attributable to Dow Corning $ 177.0 $
176.0 $ 546.5 $ 615.0
Adjustment for AEMC1, net $ (4.0
) $ (4.4 ) $ (10.5
) $ (55.9 ) Adjusted Net
Income2 $ 173.0 $ 171.6
$ 536.0 $ 559.1
1 The three and nine month
periods ended September 30, 2011 and 2010 included a tax benefit
related to Advanced Energy Manufacturing Credits, net of the
noncontrolling interests' share.
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
September 30, 2011 December 31,
2010 Assets Current Assets $
4,550.2 $ 4,624.6 Property, Plant and
Equipment, Net 7,029.8 6,120.7 Other
Assets 1,483.2 1,903.1 $
13,063.2 $ 12,648.4 Liabilities and
Equity Current Liabilities $
1,920.5 $ 2,287.8 Other Liabilities
7,546.4 6,862.8 Equity 3,596.3
3,497.8 $ 13,063.2 $
12,648.4
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