News Column

Dow Corning Reports Increased Sales and Profits for First Half of 2014

July 30, 2014

MIDLAND, Mich.--(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

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 ExecutiveVice 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,
    2014201320142013
     
     
    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


    1The six month period ended June 30, 2014 included an adjustment for a gain on a long-term sales agreement.

    2The three and six month periods ended June 30, 2014 included adjustments for the changes in market value of a derivative contract asset.

    3The three and six month periods ended June 30, 2013 included adjustments for restructuring charges.

    4Adjusted 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, 2014December 31, 2013
    Assets
     
    Current Assets$4,243.6$3,995.7
    Property, Plant and Equipment, Net7,034.37,231.1
    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 Liabilities7,144.07,177.5
    Equity   3,998.1   3,778.6
    $12,523.4$12,302.1






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    Source: Business Wire


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