Dow Corning Reports Increased Sales and Net Income in Third Quarter 2014
October 29 2014 - 7:35AM
Business Wire
Dow Corning Corp. today announced third quarter sales of
$1.52 billion, a 7 percent increase compared to 2013. Net income
also increased to $176 million, representing a 49 percent increase
compared to the third quarter of 2013. For the year, Dow Corning’s
sales ($4.54 billion) and net income ($476 million) have increased
10 and 78 percent, respectively.
J. Donald Sheets, executive vice
president and chief financial officer, Dow Corning Corporation
(Photo: Business Wire)
Adjusted net income through the third quarter of 2014 was $318
million, an increase of 58 percent compared to 2013. Adjusted net
income for 2014 excluded the impact of a derivative contract, long
term sales agreements and a tax benefit associated with foreign
dividends. Adjusted net income for 2013 excluded the impact of a
derivative contract, long term sales agreements, charges for
impaired assets and restructuring expenses. Additional information
about Dow Corning’s financial results:
Third Quarter Results
- Silicones sales grew in the Americas,
Greater China and Europe
- Silicones sales growth increased most
significantly for applications in the healthcare, packaging,
electronics, high-performance building and transportation
industries
Q3 2014 Q3 2013 % Change 2014
2013 % Change Sales (in billions) $ 1.52
$ 1.43 7 % $ 4.54 $ 4.12 10 %
Net income (in millions) $ 176 $ 117 49 %
$ 476 $ 267 78 % Adjusted net income* (in
millions) $ 109 $ 28 294 % $ 318
$ 201 58 %
*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’s sales increased for the
fourth consecutive quarter, demonstrating that our strategy,
talented team and technology are well-positioned to deliver the
growth expected of a specialty chemicals leader.”
- “Dow Corning’s industry-leading
products - combined with our global manufacturing and formulation
capabilities - led to record Silicones segment sales in the
quarter.”
- “Our Polysilicon segment through the
Hemlock Semiconductor Group continued its strong performance in
2014 as long-term contract customers continued to take shipments of
material for both semiconductor and solar grade polysilicon.”
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 September 30, Nine Months Ended September 30,
2014 2013 2014 2013
Net Sales $ 1,519.9 $ 1,426.6
$ 4,544.7 $ 4,120.9 Net
Income Attributable to Dow Corning $ 175.5
$ 117.4 $ 475.6 $ 266.7
Adjustment for Long-Term Sales Agreements1
$ - $ (134.1 ) $
(17.2 ) $ (134.1 )
Adjustment for Asset Impairment2 $ -
$ 74.0 $ - $ 74.0
Adjustment for Contract Asset3 $ 15.3
$ (32.3 ) $ (58.8 )
$ (32.3 ) Adjustment for
Restructuring4, net $ - $
2.6 $ - $ 27.1 Foreign
Tax Credit5 $ (82.0 ) $
- $ (82.0 ) $ -
Adjusted Net Income6 $
108.8 $ 27.6 $
317.6 $ 201.4
1
The three month period ended September 30, 2013 and the
nine month periods ended September 30, 2014 and September 30, 2013
included adjustments for gains on long term sales agreements.
2
The three and nine month periods ended September 30, 2013
included an adjustment for asset impairment.
3
The three and nine month periods ended September 30, 2014 and
September 30, 2013 included adjustments for the changes in market
value of a derivative contract asset.
4
The three and nine month periods ended September 30, 2013
included adjustments for restructuring charges.
5
The three and nine month periods ended September 30, 2014
included adjustments for a foreign tax credit.
6
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
September 30, 2014
December 31, 2013 Assets
Current Assets $ 4,327.5 $
3,995.7 Property, Plant and Equipment, Net
6,893.8 7,231.1 Other Assets
1,287.0 1,075.3 $ 12,508.3
$ 12,302.1 Liabilities and Equity
Current Liabilities $ 1,385.4 $
1,346.0 Other Liabilities 7,103.9
7,177.5 Equity 4,019.0
3,778.6 $ 12,508.3 $ 12,302.1
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20141029005656/en/
Dow Corning Corp.Jarrod Erpelding,
989.496.1582Jarrod.Erpelding@dowcorning.com
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