Dow Corning Q2 net income falls 14% as raw material costs surge

28 July 2011 17:53  [Source: ICIS news]

HOUSTON (ICIS)--Dow Corning’s second-quarter net income fell 14% year on year to $191m (€134m), mainly because of sharp increases in raw material and energy costs as well as higher operating expenses, the US-based silicones major said on Thursday.

In addition, slowing global economies, Japan’s tsunami and earthquake disaster, and unrest in the Middle East depressed the company’s net income during the quarter, it said.

However, Dow Corning’s sales for the three months ended 30 June rose 8% year on year to $1.67bn amid continued demand in Asia, Latin America and eastern Europe, it said.

“While demand remains solid for Dow Corning’s silicon-based materials, we’ve seen pressure on our profits in the first half of 2011 from sharply rising raw materials and energy prices,” chief financial officer Donald Sheets said.

Sheets added that the pace of the global economic recovery remains slow because of “uncertainty in the current business environment”.

Dow Corning is a joint venture between Dow Chemical and glass maker Corning.

($1 = €0.70)

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By: Stefan Baumgarten
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