Dow Corning Reports Increased Profits for First Half of 2015
July 29 2015 - 7:52AM
Business Wire
Dow Corning Corp. today announced second quarter sales of
$1.42 billion and net income of $113 million. Adjusted net income
in the second quarter increased 27 percent to $127 million. Through
the first half of the year, Dow Corning’s adjusted net income,
which excludes unusual items, has increased 9 percent despite
decreased sales impacted largely by the strong United States
dollar.
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J. Donald Sheets, executive vice
president and chief financial officer, Dow Corning Corporation
(Photo: Business Wire)
Adjusted net income for 2015 and 2014 excluded the impact of a
derivative contract and gains on long term sales agreements.
Additional information about Dow Corning’s financial results:
Second Quarter Results
- Sales were $1.42 billion, 5
percent lower than last year’s second quarter.
- Despite the headwinds caused by the
strengthening U.S. dollar Dow Corning experienced significant
growth in its most profitable Silicones segment product lines,
especially for materials sold in electronics, packaging,
high-performance building and healthcare applications.
- The strengthening U.S. dollar accounted
for a nearly 6 percent revenue decrease in the Silicones
segment.
Year-to-Date Results
- Sales were $2.79 billion, 8
percent lower than the first half of last year; the decrease is
largely driven by the strong U.S. dollar.
- Adjusted net income was $228 million, 9
percent higher than the first half of last year.
- Sales from Dow Corning’s Polysilicon
segment have decreased for the first half of the year as the timing
of customers taking product under long-term contracts resulted in
fewer shipments.
Q2 2015 Q2 2014 % Change
2015 2014 % Change Sales (in
billions) $ 1.42 $ 1.50 -5 % $ 2.79
$ 3.02 -8 % Net income (in millions) $ 113
$ 109 3 % $ 298 $ 300 -1 %
Adjusted net income* (in millions) $ 127 $ 100
27 % $ 228 $ 209 9 % *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:
- “This strong first half performance is
remarkable given the currency headwinds we face and amidst
continued oversupply and volatility in the silicones and
polysilicon industries.”
- “Dow Corning continues to advance on
our strategy to increase profitability, especially in our Silicones
segment. We’re doing this by delivering more of our highly
differentiated and innovative materials to customers that value the
expertise and innovation we bring to the table as the silicones
industry leader.”
- “Dow Corning’s first half results
continued to be impacted by fewer polysilicon shipments to
long-term contract customers. These contracts have a degree of
variability when customers take their product and recent order
patterns have resulted in customer orders being concentrated late
last year.”
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, 2015 2014
2015 2014 Net Sales $
1,424.4 $ 1,500.6 $ 2,787.9
$ 3,024.8 Net Income Attributable to
Dow Corning $ 113.0 $ 109.2
$ 298.4 $ 300.1 Adjustment
for Long-Term Sales Agreements $ - $
- $ (97.9 ) $ (17.2
) Adjustment for Fair Value of Derivative
Contract $ 13.7 $ (9.7 )
$ 27.2 $ (74.1 )
Adjusted Net Income1 $ 126.7 $
99.5 $ 227.7 $
208.8
1
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 June
30, 2015 December 31, 2014
Assets Current Assets $ 4,501.9
$ 4,712.0 Property, Plant and Equipment, Net
5,247.0 5,406.8 Other Assets
931.3 1,026.3 $ 10,680.2
$ 11,145.1 Liabilities and Equity
Current Liabilities $ 1,449.5 $
1,448.2 Other Liabilities 5,534.6
6,070.2 Equity 3,696.1
3,626.7 $ 10,680.2 $ 11,145.1
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version on businesswire.com: http://www.businesswire.com/news/home/20150729005829/en/
Dow Corning Corp.Jarrod Erpelding,
989-496-1582Jarrod.Erpelding@dowcorning.com
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