Dow Corning Reports Sales and Profits for 4Q, 2013 Year-End

Dow Corning Corp. announced fourth quarter 2013 sales of $1.59 billion, an increase of 7% over 2012, and net income of $110 million in the quarter. Adjusted net income in the fourth quarter was $103 million, an increase of 50% compared with the fourth quarter of 2012. Pricing pressure continued to limit margins in Dow Corning’s Silicones segment. Polysilicon segment performance increased as customers purchased high volumes to meet contractual requirements.

For the year, Dow Corning’s sales were $5.71 billion, a decrease of 7% compared to 2012, and net income was $376 million. Adjusted net income for 2013 was $304 million, a decrease of 10% from 2012.

“In a year characterized by significant oversupply and pricing pressure in our industry, Dow Corning competed well to maintain its industry leading financial foundation,” said J. Donald Sheets, Dow Corning’s executive vice president and CFO. We moved decisively to reduce our cost structure in 2013, providing us the ability to focus on growth through serving our customers in 2014 and beyond. Dow Corning continues to remain strong financially. In the past year we’ve paid down debt and maintained stable cash levels, carrying a strong balance sheet which will enable us to adapt and invest in the growth of our business.”

“We continue to manufacture and sell high volumes of materials in our Silicones segment,” Sheets added. “Our efforts to continually improve the efficiency of our manufacturing operations have been a significant factor in our ability to compete in this volatile economic environment. In our polysilicon segment, Hemlock Semiconductor Group delivered positive financial performance despite unprecedented pricing and volume pressure as the solar industry deals with excess capacity and awaits resolution of the global trade disputes. In 2014, we are in a strong position to focus on growth by providing our customers with industry leading products and services. We are confident that our product portfolio and talented team are well positioned to help return Dow Corning to the trajectory of growth we expect.”