GLW Corning Inc

Dow Corning Corp. today announced first quarter 2016 sales of $1.32 billion, a three percent decrease compared to 2015, and net income of $112 million. Adjusted net income in the first quarter of 2016 was $116 million, a 14 percent increase compared with the first quarter of 2015.

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J. Donald Sheets, executive vice president and chief financial officer, Dow Corning Corporation (Photo: Business Wire)

Adjusted net income for 2016 and 2015 excluded the impact of a derivative contract and gains from long-term sales agreements. Additional information about Dow Corning’s financial results:

First Quarter Results

• Dow Corning continued to increase sales volumes in its most profitable specialty silicones product lines with notable strength in the high performance building, packaging, electronics, and health and beauty care industries.
• Sales from Dow Corning’s Polysilicon segment continued to decrease as the timing of customers taking product under long-term contracts resulted in fewer shipments.

                  Q1 2016   Q1 2015   % Change Sales (in billions)   $ 1.32   $ 1.36   -3 % Net income (in millions)   $ 112   $ 185   -40 % Adjusted net income* (in millions)   $ 116   $ 101   14 %

* 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:

• “Dow Corning had a strong first quarter, with increased sales and profits in our Silicones segment despite continued headwinds caused by a stagnant global economy.”
• “Our first quarter 2015 results included a large, one-time deferred revenue gain which masks the growth we generated in the first quarter of 2016 and accounts for the difference between net income and adjusted net income.”
• “We continue to see opportunities to accelerate growth in our Silicones business upon completion of the Dow Chemical and Corning Inc. transaction. The added power of Dow’s brand, operational excellence, global scale and powerful innovation and R&D engine will provide our customers with even greater expertise and capabilities.”
• “We remain focused on growing our business by delivering high quality and innovative silicone-based products with the industry’s leading expertise and global capabilities.”

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 March 31, 2016 2015     Net Sales $ 1,316.4 $ 1,363.5   Net Income Attributable to Dow Corning $ 111.7 $ 185.4   Adjustment for Long-Term Sales Agreements $ - $ (97.9 )   Adjustment for Fair Value of Derivative Contract $ 4.0 $ 13.6     Adjusted Net Income1 $ 115.7 $ 101.1  

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         March 31, 2016 December 31, 2015 Assets   Current Assets $ 4,591.8 $ 4,510.8 Property, Plant and Equipment, Net 5,053.8 5,086.3 Other Assets   996.6   977.2 $ 10,642.2 $ 10,574.3   Liabilities and Equity   Current Liabilities $ 1,967.1 $ 1,320.6 Other Liabilities 4,582.0 5,314.4 Equity   4,093.1   3,939.3 $ 10,642.2 $ 10,574.3

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Dow Corning Corp.Jarrod ErpeldingJarrod.Erpelding@dowcorning.com989.496.1582