Dow Corning Corp. today reported its financial performance for the fourth quarter and full year of 2012. Dow Corning recorded sales of $6.12 billion and net income of $188 million for 2012. Dow Corning’s year-to-date sales and adjusted net income were down 5 percent and 45 percent, respectively, compared to 2011 as oversupply, economic volatility and high raw material costs significantly reduced the company’s profits. Adjusted net income for 2012 excluded charges for asset abandonments and restructuring expenses. Adjusted net income for 2011 excluded a gain on long-term sales agreements. Additional information about Dow Corning’s financial results:
J. Donald Sheets, Dow Corning's executive vice president and chief financial officer (Photo: Business Wire)
Fourth Quarter Results
|Q4 2012||Q4 2011||% Change||2012||2011||% Change|
|Sales (in billions)||$||1.48||$||1.52||-3%||$||6.12||$||6.43||-5%|
Net income (Loss) (in millions)
|Adjusted net income* (in millions)||$||69||$||77||-10%||$||338||$||613||-45%|
*Adjusted net income is a non-GAAP financial measure which excludes certain unusual items. The reconciliation between GAAP and non-GAAP measures is shown in the table following the news release.
Comments from Dow Corning’s ExecutiveVice President and Chief Financial Officer J. Donald Sheets:
About Dow Corning
Dow Corning (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company’s Dow Corning® and XIAMETER® brands. Dow Corning is equally owned by The Dow Chemical Company (NYSE:DOW) and Corning, Incorporated (NYSE:GLW). More than half of Dow Corning’s annual sales are outside the United States.
About Hemlock Semiconductor Group
Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of several joint venture companies among Dow Corning Corporation, Shin-Etsu Handotai, and Mitsubishi Materials Corporation. Hemlock Semiconductor is a leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices, and solar cells and modules. Hemlock Semiconductor began its operations in 1961.
|Dow Corning Corporation|
|Selected Financial Information|
|(in millions of U. S. dollars)|
|Consolidated Income Statement Data|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Net Income (Loss)|
|Attributable to Dow Corning||$||(100.7||)||$||259.7||$||187.7||$||806.2|
|Adjustment for Asset Abandonments and Restructuring1||$||169.5||$||-||$||169.5||$||-|
|Adjustment for Long-Term Sales Contracts2||$||-||$||(177.6||)||$||(19.7||)||$||(177.6||)|
|Adjustment for AEMC3, net||$||-||$||(5.3||)||$||-||$||(15.8||)|
|Adjusted Net Income4||$||68.8||$||76.8||$||337.5||$||612.8|
1 The three and twelve month periods ended December 31, 2012 included an adjustment for asset abandonments and restructuring charges.
2 The twelve month period ended December 31, 2012 and the three and twelve month periods ended December 31, 2011 included adjustments for gains on long-term sales agreements.
3 The three and twelve month periods ended December 31, 2011 included a tax benefit related to Advanced Energy Manufacturing Credits.
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|
|December 31, 2012||December 31, 2011|
|Property, Plant and Equipment, Net||7,553.1||7,380.3|
|Liabilities and Equity|