Dow Corning Corp announced sales of $4.64 billion and net income of $288 million through the first three quarters of 2012. Dow Corning’s year-to-date sales and net income were down 5 per cent and 47 per cent, respectively, compared to 2011 as oversupply, economic volatility and high raw material costs continue to challenge the company’s profits.
Sales were $1.55 billion, 7 per cent lower than last year’s third quarter. Polysilicon prices remain depressed due to industry oversupply, impacting the company’s Hemlock Semiconductor Group joint ventures. Sales in Europe were significantly lower due to continuing economic volatility. Net income was $97 million, 45 per cent lower than last year’s third quarter. Sales were $4.64 billion, 5 per cent lower than last year. Net income was $288 million, 47 per cent lower than last year.
J Donald Sheets, Executive Vice President and Chief Financial Officer, Dow Corning said, “Oversupply in both the silicone and polycrystalline silicon industries, as well as high raw material costs have impacted our financial performance throughout 2012, and these conditions are likely to last well into 2013. Our Hemlock Semiconductor joint ventures continue to be challenged by global oversupply in the polycrystalline silicon markets. Additionally, the economic and political uncertainty surrounding the solar industry is also impacting Hemlock Semiconductor’s performance. Dow Corning’s response to the volatile economy and oversupplied market place is to focus on delivering innovative silicon-based products and solutions to our customers that differentiate us from our competitors.”
“We also continue to pursue opportunities to increase efficiency and reduce costs in our operations, ultimately protecting the competitive cost position Dow Corning has earned through its nearly 70 years of experience,” he added.
EP News Bureau