Dow Corning Corp. today announced first quarter 2014 sales of $1.52 billion, an increase of 21 percent over 2013, and net income of $191 million. Adjusted net income in the first quarter of 2014 was $109 million, an increase of 65 percent compared with the first quarter of 2013.
J. Donald Sheets, Dow Corning's executive vice president and chief financial officer (Photo: Business Wire)
Adjusted net income for 2014 excluded gains from a derivative contract and long term sales agreements. Adjusted net income for 2013 excluded restructuring expenses. Additional information about Dow Corning’s financial results:
First Quarter Results
- Sales were $1.52 billion, 21 percent higher than last year’s first quarter.
- Adjusted net income was $109 million, 65 percent higher than last year’s first quarter.
- Dow Corning’s Silicones segment experienced volume growth across most geographic regions.
- Dow Corning’s Polysilicon segment continued to see strong shipments as customers accepted delivery of material purchased through long-term contracts.
| Q1 2014 | Q1 2013 | % Change | ||||||
| Sales (in billions) | $ | 1.52 | $ | 1.26 | 21 % | |||
| Net income (in millions) | $ | 191 | $ | 62 | 207 % | |||
| Adjusted net income* (in millions) | $ | 109 | $ | 66 | 65 % | |||
*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 strategy and leading technology are enabling us to compete well and deliver stronger financial performance despite continued industry oversupply and volatility in the global marketplace.”
- “Our Silicones segment saw increases in volume in the first quarter as customers look to Dow Corning for its stability and strength in delivering quality products, reliable supply and innovation for our customers.”
- “In our Polysilicon segment, Hemlock Semiconductor Group continued to see strong shipments of both semiconductor and solar grade polysilicon as customers with long-term contracts accepted delivery of contracted material.”
- “In 2014, Dow Corning is focusing 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.”
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, | ||||||||
| 2014 | 2013 | |||||||
| Net Sales | $ | 1,524.2 | $ | 1,264.4 | ||||
| Net Income | ||||||||
| Attributable to Dow Corning | $ | 190.9 | $ | 62.1 | ||||
| Adjustment for Long-Term Sales Agreement1 | $ | (17.2 | ) | $ | - | |||
| Adjustment for Contract Asset2 | $ | (64.4 | ) | $ | - | |||
| Adjustment for Restructuring, net3 | $ | - | $ | 4.3 | ||||
| Adjusted Net Income4 | $ | 109.3 | $ | 66.4 | ||||
1 | The three month period ended March 31, 2014 included an adjustment for a gain on a long-term sales agreement. | |||
2 | The three month period ended March 31, 2014 included an adjustment for the change in market value of a derivative contract asset. | |||
3 | The three month period ending March 31, 2013 included an adjustment for restructuring charges. | |||
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 | |||||||
| March 31, 2014 | December 31, 2013 | ||||||
| Assets | |||||||
| Current Assets | $ | 4,158.4 | $ | 3,995.7 | |||
| Property, Plant and Equipment, Net | 7,111.6 | 7,231.1 | |||||
| Other Assets | 1,207.8 | 1,075.3 | |||||
| $ | 12,477.8 | $ | 12,302.1 | ||||
| Liabilities and Equity | |||||||
| Current Liabilities | $ | 1,380.7 | $ | 1,346.0 | |||
| Other Liabilities | 7,165.8 | 7,177.5 | |||||
| Equity | 3,931.3 | 3,778.6 | |||||
| $ | 12,477.8 | $ | 12,302.1 | ||||
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140429006050/en/
Contacts:
Jarrod Erpelding, 989.496.1582
Jarrod.Erpelding@dowcorning.com
