Dow Corning Reports Sales and Profits for Fourth Quarter and 2009 Year-End
MIDLAND, Mich., Feb. 3 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated net income of $270.5 million for the fourth quarter of 2009, an increase of 57 percent from net income of $172.6 million reported in the fourth quarter of 2008. For all of 2009, net income was $579.6 million, a decline of 22 percent from net income of $738.7 million reported in 2008. Dow Corning reported adjusted consolidated net income of $211.3 million for the fourth quarter and $578.0 million for all of 2009. The 2009 adjusted net income excluded restructuring charges and the tax benefit associated with foreign dividends. In 2008 consolidated adjusted net income was $174.2 million for the fourth quarter and $775.7 million for the year. The 2008 results were adjusted for a loss from a write down of certain investments.
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Sales were $1.47 billion in the fourth quarter of 2009, 13 percent higher than sales of $1.30 billion in the same quarter of 2008. Sales for all of 2009 were $5.09 billion, 7 percent lower than sales of $5.45 billion reported in 2008.
Dow Corning also made a strategic acquisition in the fourth quarter having acquired two chemical grade silicon manufacturing assets from Globe Specialty Metals for approximately $175 million.
Comments from Dow Corning's Executive Vice President and Chief Financial Officer J. Donald Sheets:
- "Dow Corning saw a significant recovery in its silicones business in the second half of the year, as our two-brand strategy allowed us to get the right products and solutions into the hands of our customers."
- "Our polycrystalline silicon business through Hemlock Semiconductor Group had another solid year, operating at expected manufacturing rates while supplying all contracted volumes to both solar and semiconductor customers."
- "While it's still a volatile economic environment, the year ended with many positive signs. Dow Corning's fourth quarter sales performance is another significant step in the global recovery of our business."
- "2010 will be another active year for Dow Corning as major capital expansions in China will be completed and Hemlock Semiconductor Group's expansions in the United States will continue to bring new capacity online. We'll also focus on expanding our markets by investing in our diverse innovation portfolio and by continuing to expand our geographic footprint."
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
The Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of two joint ventures: Hemlock Semiconductor Corporation and Hemlock Semiconductor, L.L.C. The companies are joint ventures 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 Michigan operations in 1961 and broke ground at its Tennessee location in 2009.
Dow Corning Corporation
Selected Financial Information
(in millions of U.S. dollars)
(Unaudited)
Consolidated Income Statement Data
Three Months Twelve Months
Ended December 31, Ended December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net Sales $1,468.1 $1,303.7 $5,092.5 $5,450.0
Net Income
Attributable to
Dow Corning $270.5 $172.6 $579.6 $738.7
Adjustment for
Restructuring, net(1) $3.8 $- $61.4 $-
Adjustment for Tax
Benefit(2) $(63.0) $- $(63.0) $-
Adjustment for
Asset Impairment(3) $- $1.6 $- $37.0
--- ---- --- -----
Adjusted Net Income(4) $211.3 $174.2 $578.0 $775.7
(1) Fiscal Year 2009 included charges related to the Company's
restructuring program.
(2) Fiscal Year 2009 included a tax benefit associated with foreign
dividends.
(3) Fiscal Year 2008 included a loss from a write down of investments in
Fannie Mae and Freddie Mac securities.
(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, 2009 December 31, 2008
----------------- -----------------
Assets
Current Assets $3,569.7 $3,212.6
Property, Plant and
Equipment, Net 5,018.5 3,755.9
Other Assets 2,251.5 2,253.7
------- -------
$10,839.7 $9,222.2
========= ========
Liabilities and Stockholders' Equity
Current Liabilities $1,926.0 $2,007.8
Other Liabilities 5,885.7 4,475.0
Equity 3,028.0 2,739.4
------- -------
$10,839.7 $9,222.2
========= ========
SOURCE Dow Corning Corporation
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